Funds raised from the capital markets, including via equity and debt instruments, are expected to rise nearly 21% year-on-year to Rs 14.27 lakh crore in FY25, Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch said on Friday.
Total capital formation has reached Rs 10.7 lakh crore so far this fiscal, with Rs 7.3 lakh crore coming from the primary debt market, Buch said at the National Institute of Securities Markets’ ‘Samvad’ symposium, her first public appearance in three months.
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“For the last nine months, Rs 3.3 lakh crore has been raised in equity, and with another quarter to go, we anticipate a total of Rs 4.3 lakh crore by year-end,” she said.
The contribution from real estate investments trusts (REITs), infrastructure investment trusts (InvITs) and municipal bonds was merely around Rs 10,000 crore so far this fiscal. Buch, however, expects activity to pick up in this space over the next decade. “The growth is so substantial that it could exceed the capital pumped in from equity and debt markets. If we leverage assets we have in this country ― both existing and those yet to be built ― REITs and InviTs could see their capital double over the next decade.”
Preferential issuances, institutional placements and rights issues almost go unnoticed, while the regulator gets “flooded” with new applications for initial public offerings (IPOs), she said. SEBI is keen on making more use of technology and artificial intelligence to reduce the time taken by the exchanges to approve issuances, particularly from small and medium enterprises. Currently, SME approvals take up to three months while banks accord in-principle approvals in 15 minutes.
SEBI has managed to quicken the approval time for rights issuances as well as mutual fund new offerings. It will soon be launching systematic investment plans (SIPs) with a minimum amount of Rs 250, Buch said.
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On complaints regarding the increase in regulatory costs, Buch said the regulator’s efforts are directed towards easing business processes and reducing compliance burdens. “In the past year, only 21% of SEBI’s circulars were focused on investor protection and risk reduction,
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