SEBI: The amount raised on capital markets in FY25 will increase by 21% to Rs 14.27 lakh crore

New Delhi| Total fundraising from capital markets, including equity and debt instruments, is projected to increase by about 21 per cent to Rs 14.27 lakh crore in FY2025, amounting to Rs 11.8 lakh crore in FY2024. SEBI chief Madhavi Puri Buch said this on Friday. Butch said the entities have raised Rs 3.3 lakh crore from equities and Rs 7.3 lakh crore from debt markets in the last nine months of the current fiscal year, bringing the total raised to Rs 10.7 lakh crore.

“If we make projections for the next quarter (Q4) we will probably raise more than Rs 14 lakh crore during the year in terms of both capital, equity and debt”, Butch said while addressing a conference organized by NISM in Mumbai The presentation presented by Butch put the FY2025 estimate at Rs 14.27 lakh crore.

Butch said the funds raised by real estate investment trusts, infrastructure investment trusts and municipal bonds have a very small contribution to total capital raising in the first nine months of FY25, which is about Rs 10,000 crore, but he feels that this activity will increase over the next decade to more than the funds raised on equity and debt markets.

Butch said the capital markets regulator is working towards speeding up the time taken to settle issues. He committed to reduce the time taken for disposal of board proposals of Small and Medium Enterprises (SMEs). He said that SEBI is taking up to 3 months for such SME issues, while banks are giving in-principle approval in 15 minutes. He said he would like to use more technical tools to push the issues forward.

Butch said IPOs are getting a lot of attention and SEBI has been flooded with new applications in this regard, but he said other avenues including preferential issues, institutional placements and rights issues are also important. He said the regulator has created a system to expedite rights issues and expressed hope that the industry will also adopt it.

SEBI Chairman said that the regulator is approving new proposals for mutual funds very fast. He said that Systematic Investment Plans (SIPs) with a minimum amount of Rs 250 would be launched soon.
He appreciated the resources raised by domestic institutional investors in the last few years and said that this money has helped in times of instability, when foreign portfolio investors are exiting.

Butch said SEBI faces criticism from some quarters for moving too fast on various aspects, but added that this momentum is necessary if we have to fulfill our aspirations on the development front.