23% of Indian households now invest in equities

Ashish Chauhan, the CEO of the National Stock Exchange (NSE), spoke about a significant rise in equity investing in India. He revealed that about 23% of Indian households invest in stocks, either directly or through mutual funds. This number is higher than in countries like France and Germany. Chauhan noted a remarkable growth in the number of investors. In the early 1990s, there were around 1 million investors. Today, that number has increased to 11 crore, a 110-fold rise. He attributed this change to growing trust between Indian citizens and entrepreneurs, allowing a woman in Assam to invest in a business in Tamil Nadu, for example. The NSE now has a presence in nearly all of India's 19,400 PIN codes. Chauhan believes that advancements in technology and regulatory changes have made investing more accessible to everyone. For instance, he highlighted that video KYC processes have helped brokers reach even the most remote areas. Chauhan also expressed confidence in India's equity markets' ability to create wealth. He mentioned that stock markets channel savings into productive investments. Additionally, he noted ongoing reforms by the Securities and Exchange Board of India (SEBI) aimed at reducing speculative trading. Regarding Initial Public Offerings (IPOs), Chauhan explained that their frequency depends on market conditions. Strong markets see more IPOs, while weaker markets lead to delays in company listings. He also touched on foreign institutional investors (FIIs), stating their withdrawal often links to changes in U.S. interest rates. However, he emphasized that domestic investors are increasingly providing stability to the market.