Description

SEBI releases comprehensive nationwide investor survey covering 90,000 households, revealing 9.5% participation rate despite 63% awareness of securities market products.

Summary

SEBI, in collaboration with AMFI and Market Infrastructure Institutions (NSE, BSE, NSDL, CDSL), released the Investor Survey 2025 conducted by Kantar. The nationwide survey covered over 90,000 households across 400 cities and 1,000 villages to assess awareness, participation, and barriers in India’s securities market ecosystem. Key findings reveal a significant gap between awareness (63% of households) and actual participation (9.5%) in securities markets, with 80% of households preferring capital preservation over higher returns.

Key Points

  • Survey covered 90,000+ households across 400 cities and 1,000 villages using quantitative and qualitative methods
  • 213 million households (63%) are aware of at least one securities market product (Mutual Funds, ETFs, Shares, F&O, REITs/InvITs, Bonds, AIFs)
  • Only 32.1 million households (9.5%) actually participate in securities markets
  • Urban participation (15%) significantly higher than rural (6%); Delhi leads at 20.7%, followed by Gujarat at 15.4%
  • Only 36% of investors possess high or moderate knowledge of securities markets
  • Nearly 80% of Indian households prefer capital preservation over higher returns
  • 79% of Gen-Z households also display risk-averse behaviour
  • Key barriers include complexity, lack of knowledge, trust deficits, and fear of losses
  • 22% of aware non-investors express intent to invest within the next year
  • Limited awareness of SEBI’s grievance redressal system, though users report ~90% satisfaction

Regulatory Changes

No immediate regulatory changes announced. The survey findings are intended to inform future policy development and strategic initiatives for promoting responsible investing and market inclusiveness.

Compliance Requirements

No new compliance requirements imposed. The survey serves as a diagnostic tool to guide SEBI, AMFI, and MIIs in developing:

  • Enhanced investor education programs
  • Simplified digital platforms and processes
  • Regional language financial literacy content
  • Trust-building initiatives

Important Dates

  • September 30, 2025: Survey findings released
  • Survey targeted intenders planning to invest within the next year

Impact Assessment

Market Impact: The survey identifies significant untapped potential with 22% of aware non-investors intending to participate, representing potential growth opportunity for securities markets.

Educational Impact: Findings highlight critical need for sustained financial education, particularly in regional languages. Preferred channels include social media, mobile apps, and TV/digital ads, with Gen-Z favoring short-form video content.

Operational Impact: Results indicate need for simplification of investment processes, lower entry barriers, and improved digital platforms to convert intenders to active participants.

Strategic Implications: The awareness-participation gap (63% vs 9.5%) presents both a challenge and opportunity for market expansion. Focus areas include building trust, expanding regional language content, and addressing risk-averse mindset through education and success stories.

Oversight: Survey methodology guided by expert group including representatives from CMIE, IIM Ahmedabad, and senior officials of SEBI, AMFI, NSE, BSE, NSDL and CDSL.

Impact Justification

Survey findings provide strategic insights for policy development and investor education initiatives; medium impact on long-term market development though no immediate regulatory changes