Sebi survey finds nearly 10 pc of Indian households invest in securities

New Delhi, Sep 30 (PTI) Nearly 10 per cent of Indian households invest in securities despite 63 per cent being aware of at least one market product, according to to a Sebi investor survey released on Tuesday.

According to the findings, urban participation in securities stood at 15 per cent compared to only 6 per cent in rural areas. Among states, Delhi led with 20.7 per cent household participation, followed by Gujarat at 15.4 per cent.

However, the survey pointed out that only 36 per cent of investors possess moderate knowledge of securities markets, highlighting the need for sustained financial education.

Nearly 80 per cent of Indian households said they prefer capital preservation over higher returns, highlighting the dominance of risk-averse behaviour across age groups. Interestingly, 79 per cent of Gen-Z households also displayed a similar preference for risk-averse behaviour.

Complexity of financial products, lack of adequate knowledge, trust deficits, and fear of losses were identified as the major deterrents preventing wider market participation.

Among 'intenders' -- non-investors aware of securities market products but intend to invest within the next year there was a strong demand for simpler digital platforms, easier processes, lower entry barriers, and inspiring success stories and role models.

The nationwide survey, conducted in collaboration with the Association of Mutual Funds in India (AMFI) and market infrastructure institutions including NSE, BSE, NSDL and CDSL, covered over 90,000 households across 400 cities and 1,000 villages, is one of the largest household surveys of its kind.

The investor survey executed by research firm Kantar captured insights from investors, non-investors, lapsers, intenders, and intermediaries to provide a comprehensive view of India's investment ecosystem.

The survey also revealed changing preferences in how investors seek financial education. While social media, mobile apps, and TV/digital advertisements were identified as the most preferred channels, Gen-Z participants leaned toward short-form video tutorials and reels.

Older cohorts, however, showed a stronger preference for long-form content such as articles, podcasts, and workshops.

Another notable finding was the strong preference for regional language financial education across segments, suggesting that localisation could play a key role in improving investor outreach and inclusion.

The report observed that awareness and usage of Sebi's grievance redressal system remain limited, though nearly 90 per cent of users expressed satisfaction with the outcomes.

The regulator noted that about 22 per cent of non-investors who are aware of securities market products expressed their intent to invest within the next year, signalling substantial potential for future participation.

The study emphasised that unlocking this potential would require building investor trust, simplifying investment processes, and expanding financial literacy programmes, particularly in regional languages.

The Securities and Exchange Board of India (Sebi) said the survey was undertaken against the backdrop of rising investor participation and the expanding role of India's securities market in mobilising and allocating funds.

The survey's objectives were to assess current penetration and awareness levels, identify barriers and motivators for investors and non-investors and evaluate the effectiveness of investor education and grievance redressal mechanisms.

Sebi said the findings would help frame strategies aimed at promoting responsible investing and make India's securities markets more inclusive. PTI HG MR