Retail Participation in Indian Capital Markets Hits Record High as Demat Accounts Surge to 19.4 Crore in 2025

Mumbai, July 15, 2025 — India’s capital markets are witnessing a historic transformation, led by a dramatic rise in retail investor participation. According to Ruchi Chojer, Executive Director at the Securities and Exchange Board of India (SEBI), the number of demat accounts has surged to 19.4 crore as of 2025, up from 3.6 crore in 2019.

There are different reasons for the increased investor confidence in the Indian capital markets, starting with the regulatory framework & investor protection (SEBI initiative). As stock markets have become more transparent, investment in market-linked securities has become accessible for everyone. It sets the stage for greater democratisation of financing and long-term financial inclusion, as underlined by Chojer speaking at the IVCA Renewable Energy Summit 2025.

Domestic Institutions Gain Ground as Foreign Ownership Slips

Alongside the retail boom, domestic institutional ownership in listed companies has climbed from 13% to 20%, while foreign ownership has declined from 22% to 17%. This marks a significant rebalancing of market power toward Indian investors and institutions.

Chojer emphasised SEBI’s regulatory approach of balancing capital formation with systemic stability and investor protection. “Trust is the cornerstone of investment, and India has earned that trust,” she stated.

₹93 Lakh Crore Raised Over the Decade

Over the last decade, Indian companies have collectively raised close to ₹93 lakh crore through equity and debt instruments. In the financial year 2024–25, a record ₹4.3 lakh crore was mobilised through equity, with ₹1.7 lakh crore coming from Initial Public Offerings (IPOs).

Chojer highlighted that India’s capital markets have evolved into one of the top 10 equity ecosystems globally, marked by resilience, inclusivity, and strong domestic participation.

Capital Markets to Power Clean Energy Transition

With India embarking on an ambitious clean energy journey, Chojer underlined the pivotal role of capital markets and Alternative Investment Funds (AIFs) in financing critical long-term infrastructure like grid modernisation, energy storage, and transmission.

SEBI has already enabled blended finance structures, allowing philanthropic and multilateral capital to participate through junior units in AIFs, thereby encouraging investments in sectors that require patient and risk-tolerant capital.

ESG Adoption and AIF Support

Addressing the role of AIFs in sustainability, Chojer noted that about 40% of AIF capital is sourced from foreign investors, many of whom expect strong alignment with global ESG (Environmental, Social, and Governance) standards.

She expressed SEBI’s openness to the creation of ESG-labelled AIF categories and advocated for well-structured tax incentives to drive capital into high-impact, high-risk sectors.

$250 Billion Required for Green Growth by 2030

Looking ahead, Chojer estimated that India would require USD 250 billion by 2030 to finance its renewable energy, storage, and transmission goals.

“SEBI remains committed to enabling this transformation by offering regulatory clarity, reducing policy risks, and supporting innovative investment structures,” she said. “Our goal is to ensure that India’s capital markets continue to serve not just as engines of growth, but as platforms for building a sustainable, future-ready economy.”

The remarks underscore SEBI’s proactive stance in fostering a capital market environment that is both growth-oriented and aligned with India’s long-term sustainable development goals.

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