Madhabi Puri Buch, the chief of Sebi, shared some exciting news about fundraising through markets. She said that the total money raised from selling stocks and bonds is expected to rise about 21% next year. This means it could reach a whopping Rs 14.27 lakh crore in FY25, compared to Rs 11.8 lakh crore in FY24.
In the first nine months of this year, companies have already gathered Rs 3.3 lakh crore from selling stocks and Rs 7.3 lakh crore from bonds, adding up to Rs 10.7 lakh crore. If we keep going like this, by the end of this year, we could see over Rs 14 lakh crore raised, which includes both stocks and bonds.
Buch also mentioned that investments in real estate trusts and municipal bonds are currently small, totaling about Rs 10,000 crore, but she believes this will grow a lot in the future.
To make the fundraising process faster, Sebi is working to cut down the time it takes to approve small business fundraising. Right now, it can take up to three months for small and medium businesses, while banks can give approvals in just 15 minutes!
While there’s a lot of focus on Initial Public Offerings (IPOs), Buch says it’s essential not to overlook other ways companies can raise money, like special issuances and rights issues. She’s confident that the industry will adopt new systems to make these processes quicker too.
Sebi has also been approving new mutual fund offers much faster and plans to introduce systematic investment plans (SIPs) with a minimum of Rs 250 soon. Buch praised domestic investors for their role in supporting the market, especially when foreign investors pull back during tough times. Even though Sebi sometimes gets criticized for moving quickly, Buch believes it’s necessary to keep the growth going.
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