Sebi Survey 2025: Only 1 On 10 Indian Households Invest in Stock Market Despite High Awareness

Sebi Survey 2025: The concept of investing money in the securities market has become increasingly mainstream in India. The rise and fall of the indices is closely watched by the public, irrespective of the portfolio they hold. To a great extent, the stock market has been demystified for investors and garners immense interest.

This surge in interest is backed by rising awareness, a recent survey by the Securities Exchange Board of India (Sebi) revealed that 63 per cent of Indian households or 213 million households know about at least one securities market product (Mutual Funds, ETFs, Shares, F&O, REITs/InvITs, Bonds, AIFs).

Sebi stated that this awareness is driven by short-form video tutorials and reels for Gen Zs and articles, podcasts, and workshops for older cohorts. However when it comes to actual participation in the securities market the number dwindles to 9.5 per cent or nearly 32.1 million households.

The new survey by Sebi highlights the gaps between knowing about the market and actually applying the knowledge to seek investment opportunities in the securities market. Sebi’s findings become extremely significant amid a rise in the number of demat accounts and mutual fund folios. The total number of demat accounts in India have grown to 205 million as of August 2025 and the total number of unique mutual fund investors have grown to 55.3 million as of June 2025.

The capital market regulator along with several other stakeholders such as the Association of Mutual Funds in India (AMFI), National Stock Exchange (NSE), BSE, National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL) and Kantar research surveyed over 90,000 households and found that while awareness regarding the securities market is rising it is concentrated geographically with Delhi and Gujarat leading in terms of participation.

The survey also revealed that participation in the securities market is higher, with 15 per cent of households investing in the market compared to just 6 per cent in rural India.

What Stops India From Investing

The market regulator cited in its survey that several factors are likely to have influenced investor sentiment, leading to a gap between knowing about the securities market and participating in it. As per the survey nearly 80 per cent of households prefer capital preservation over higher returns indicating a strong aversion to risk. The aversion to risk is widespread across ages as 79 per cent of Gen-Z households also displayed risk-averse behaviour.

Sebi also highlighted technical barriers which prevent investment in the securities market, these include complexity, a lack of knowledge, trust deficits, and fear of losses.

Sebi’s Solution To Boost Investing

While the gap between awareness and participation seems wide, the market regulator has proposed several solutions to bridge it. The capital market regulator identified a category of individuals termed ‘Intenders’.

As per Sebi, these intenders know about the securities market and have expressed an interest in investing within the next year. The market regulator found that these intenders make up nearly 22 per cent of the present non-investing population.

The market regulator plans to address the needs of the intenders by creating simpler digital platforms, easier processes, the promotion of success stories and role models and lower entry barriers. Sebi also plans to build trust, simplify processes and expand financial literacy in regional languages.