The Securities Exchange Board of India (SEBI) on May 20, 2026, notified regarding Household Savings through the Indian Securities Market.
The following has been stated:
• A research paper released by SEBI highlights that household savings routed through the Indian securities market are significantly higher than previously estimated due to a revised methodology for calculating investments in financial instruments.
• Under the revised framework, household savings through securities markets in FY2024-25 are estimated at around ₹6.9 lakh crore compared to ₹5.42 lakh crore under the earlier methodology. Consequently, India’s gross savings-to-GDP ratio for FY25 has increased to 34.94% from the earlier estimate of 34.47%.
• The revised methodology incorporates:
o Actual granular market data instead of estimation-based calculations,
o Secondary market investments,
o New-age financial instruments such as REITs, InvITs, and AIFs,
o Wider investor categories including non-profit institutions serving households.
• The study indicates a structural shift in household savings from traditional physical assets like gold and real estate towards financial market instruments. It also notes that while households were net sellers in direct equities during FY25, investments into mutual funds reached record highs, reflecting increasing preference for professionally managed investment products.
• SEBI stated that the revised approach improves the accuracy and quality of national savings data and provides a more realistic picture of household participation in India’s securities market.
