NEW DELHI, April 25: Finance Minister Nirmala Sitharaman today highlighted the transformation of India’s financial markets, saying they have travelled a “remarkable distance” over the years, evolving into a robust, technology-driven and globally competitive ecosystem.
Addressing the 38th foundation day of the Securities and Exchange Board of India (SEBI), the Minister traced the journey of Indian markets from traditional trading rings to modern electronic order books, from physical share certificates to full dematerialisation, and from fragmented oversight to real-time regulatory supervision.
She said the evolution of the markets has been shaped by past challenges, noting that periods of stress and volatility helped strengthen regulation and market infrastructure.
“The history of Indian markets has also taught us important lessons from the period of stress in earlier decades, which lead to strong regulation, episodes of volatility led to stronger market infrastructure, challenges led to better institutions, that is how mature financial systems evolve by learning, adapting and emerging stronger” the Minister said.
Highlighting SEBI’s role, Sitharaman said its effectiveness stemmed not just merely from the breadth of its powers but from the discipline with which they were exercised.
She said, ” SEBI led India’s transition to the T 1 (Trade Plus One) settlement cycle for all listed securities, completed in January 2023, placing India ahead of several major markets, including the United States, which adopted T 1 in May 2024.”
“(Trade plus one) settlement cycle” refers to a securities transaction cycle requiring trades to settle within one business day, where shares and funds exchange hands by the next working day.
“SEBI pioneered also what’s called the ASBA (Applications Supported by Blocked Amount), a mechanism for IPOs, a global innovation that eliminated the refund cycle and blocked only the allotted amount in the investor’s own bank account.”
SEBI and NPCI made india the first jurisdiction in the world to enable IPO applications through UPI, bringing real-time retail participation in primary markets to every smartphone.
India today operates one of the world’s most advanced depository infrastructures with NSDL and CSDL holding dematerialised securities worth over USD 5 trillions .
She also shared some data showing the effectiveness of the institution, “SEBI success rates over 90pc in the Supreme Court, 73pc at Securities Appellate Tribunal, 92pc at civil courts or NCLT.”
These statistics actually demonstrate the institutional strength of its legal architecture
“During FY2025-26, IPO activity remained buoyant, 366 IPOs facilitating capital raising of around 1.9 lakh crores due to regulatory support. India’s retail participation revolution is one of the great democratising developments in our financial history”
On market activity, Sitharaman said IPO momentum remained strong, with 366 public issues raising around Rs 1.9 lakh crore in FY26, supported by a conducive regulatory environment.
She described India’s surge in retail participation as a major democratising development in the country’s financial history.
However, she cautioned that increased participation must be accompanied by awareness.
“Participating without understanding can create vulnerability, and access without safeguards can create risks,” she said, stressing that investor protection must evolve from a defensive to a developmental function.
The Minister emphasised that regulatory systems must not aim for excessive restrictions but should become more sophisticated and anticipatory.
She noted that all major global markets have experienced episodes of excess and crisis, and the true measure of institutional strength lies in the speed and rigour of corrective responses.
Sitharaman underlined that trust and integrity form the “invisible infrastructure” of financial markets.
“Markets grow on trust, and trust rests on fairness, transparency, enforcement and predictability,” she said, adding that such trust must be continuously renewed in the face of emerging risks.
Calling for strong enforcement, she said SEBI must remain uncompromising in tackling misconduct, ensuring that violations are investigated and pursued consistently.
She also stressed the need to upgrade surveillance systems and ensure timely, accessible grievance redressal mechanisms.
Referring to emerging concerns, the Minister backed SEBI’s crackdown on unregistered financial influencers, warning against the monetisation of uninformed retail investor trust.
She called for an enabling framework for responsible financial education while maintaining zero tolerance for unlicensed financial advice aimed at personal enrichment.
(UNI)
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