The Securities and Exchange Board of India's latest investor survey has uncovered a striking disparity between market awareness and actual investment participation among Indian households. The comprehensive study reveals that while a majority of households possess knowledge about securities market products, the translation of this awareness into active investment remains significantly limited.

Key Survey Findings

The SEBI Investor Survey 2025 presents compelling data about household engagement with India's securities market:

The survey findings indicate that approximately 63% of Indian households demonstrate awareness of at least one securities market product. However, this awareness translates into actual investment activity for only 9.5% of households, creating a substantial gap of over 53 percentage points.

Investment Scope and Products

The survey encompasses various securities market instruments that households may invest in, including:

• Equities and stocks
• Mutual funds
• Bonds and fixed-income securities
• Other market-linked investment instruments

Despite widespread awareness of these investment options, the low participation rate of 9.5% suggests significant barriers exist between knowledge and action in investment decision-making.

Market Participation Challenges

The substantial difference between awareness levels and actual investment participation highlights the complexities involved in converting market knowledge into investment behavior. The survey results suggest that while educational efforts about securities market products have achieved considerable reach, additional factors may be influencing households' decisions to actively participate in market investments.

The findings provide valuable insights for policymakers, market intermediaries, and financial institutions working to enhance retail investor participation in India's securities market. Understanding this awareness-to-action gap becomes crucial for developing targeted strategies to encourage broader market participation among Indian households.

The Securities and Exchange Board of India (SEBI) has introduced a comprehensive regulatory framework for 'Significant Indices' as part of its ongoing efforts to strengthen governance standards among Index Providers in the securities market. The proposal, outlined in a consultation paper released on Monday, establishes clear criteria and operational guidelines for enhanced oversight of major financial benchmarks.

Definition and Scope of Significant Indices

SEBI has defined "Significant Indices" as those administered by an Index Provider and benchmarked by domestic mutual fund schemes with cumulative Assets Under Management (AUM) exceeding ₹20,000 crore. This threshold-based approach ensures that the regulatory framework captures indices with substantial market influence and investor exposure.

AUM Calculation Methodology

The regulatory framework establishes a detailed methodology for calculating the AUM threshold. The calculation is based on the daily average AUM of domestic mutual fund schemes for each of the past six months, ending on June 30 and December 31 of each year. For mutual fund schemes that track multiple indices, the AUM is allocated proportionally among the tracked indices. In cases involving an "index of indices," the AUM of underlying indices is included based on their respective weights in the composite index.

Registration Requirements and Timeline

Under the proposed framework, providers of identified Significant Indices must submit an application for registration as an Index Provider within six months from the date of issuance of the final circular. However, this registration requirement will not apply to providers whose significant indices are already regulated by the Reserve Bank of India (RBI), avoiding regulatory overlap and duplication.

Enhanced Governance and Grievance Mechanism

The proposal aims to increase transparency and accountability in financial benchmarks through structured governance measures. The grievance redressal mechanism will apply specifically to Significant Indices provided by Index Providers registered with SEBI, ensuring that investor concerns and disputes related to these benchmarks have a formal resolution pathway.

Public Consultation Process

SEBI has invited public comments on the proposed regulatory framework until January 30, demonstrating its commitment to stakeholder consultation in policy development. This consultation period allows market participants, Index Providers, and other stakeholders to provide feedback on the proposed measures before final implementation.