“This is not a rush to mint gold but an informed move by retail investors shifting from bank fixed deposits to taking calculated risks in the market, thanks to the transparency in corporate governance that allows them to learn about and invest in companies directly or through funds,” Finance Minister Nirmala Sitharaman said at the 150th year celebrations of the BSE in Mumbai on Thursday.

Striking a note of confidence in India’s growing base of individual investors, the FM highlighted how retail investors are no longer passive spectators but active participants who are shaping the country’s capital markets. “Investors are doing their homework, and financial awareness campaigns are paying off,” she said. “They are choosing companies with strong corporate governance and transparent performance, reading annual reports, and making informed decisions.”

India’s retail participation has surged over the past decade. The country added a record 41 million demat accounts in February 2025 alone, taking the total to 190 million—an exponential increase from pre-pandemic levels. “Notably, the number of new demat accounts added each financial year now matches the total number of accounts that existed before the pandemic,” Sitharaman observed.

From just seven companies with over a million shareholders in 2014, the number has now jumped to 55. The minister tied this to India’s broader economic progress, saying, “This increase over the last two decades reflects India’s strong economic fundamentals, the implementation of crucial reforms, and a steadily growing investor base.”

She also drew attention to the demographic shifts in investor profiles. “The median age of Indian investors is 32 years, with over 40% under 30, and one in four investors today is a woman,” she said. “I’m so glad to share this data because women are placing their trust and faith in the stock markets, and we must carefully nurture this trend. Any small omission or commission could shatter this newfound confidence, which gives us strength.”

Sitharaman also underscored the evolving role of domestic institutions. “Domestic institutional investors recorded total inflows of ₹6.1 lakh crore in the last financial year, outpacing the ₹1.3 lakh crore in net outflows from foreign investors,” she said. “This transition of domestic institutional investors from a supportive to a dominant force underscores the growing maturity of India’s stock markets.”

On the primary markets, she noted: “Over the past five years, domestic listings surged from 106 to 320, culminating in record equity issuance of ₹4.2 lakh crore in FY25, twice the amount raised previously. Notably, India became the top country globally in IPO volume, surpassing the U.S. with double the number of IPOs.”

The mutual fund industry has also played a transformative role. “The mutual fund industry has played a pivotal role in fostering financial inclusion, with assets under management more than tripling in five years from ₹22 lakh crore to ₹65 lakh crore,” she said. “The number of unique mutual fund investors has grown from 2 crore to 5.4 crore, with the majority of equity-oriented investments held by individual investors, reinforcing the grassroots strength of our financial system.”

Summing up her vision, Sitharaman said, “Our vision for India’s capital markets extends beyond scale; we are building markets that are inclusive, accessible, and resilient.”