Summary of this article
A recent Sebi survey highlights that while 63 per cent of Indian households are aware of securities, only 9.5 per cent actually participate in the market.
The data reveals a significant urban-rural divide, with metro cities reaching 89 per cent awareness compared to much lower engagement levels in rural regions across India.
Despite digital growth, investment remains skewed toward men and millennials, while the silver generation remains highly risk-averse, prioritizing capital safety over higher market-linked returns in the long term.
Participation in the Indian securities market has increased at a rapid pace in the past few years. According to the Investor Survey 2025 published by the Securities and Exchange Board of India (Sebi), this is represented by the growth of the benchmark indices such, the BSE equity market capitalisation, which has grown from Rs 101 lakh crore in FY2014–15 to Rs 4,701 lakh crore as of October 2025.
However, amid the growth, Sebi has identified that while awareness of financial products has increased, only 63 per cent of the households surveyed or 213 million households were aware of at least one securities product. On the other hand, the remaining 37 per cent of the population did not have any awareness of financial products. Despite the increase in awareness around financial products, only 32.10 million households, or 9.50 per cent actually invest in securities market products, the survey revealed.
The study said that urban households lead with 74 per cent of them being aware about securities compared to 56 per cent in rural India. Additionally, the top nine metro cities had the highest level of awareness, reaching 89 per cent. In terms of participation, urban areas recorded participation in the securities market around 15 per cent of the households surveyed compared to just 6 per cent in the rural areas. Participation within urban India was driven by the top 9 metros with an average of 23 per cent households participating and investing in the securities market.
The study revealed that awareness regarding various financial products varied greatly, as 65 per cent of urban households were found to be aware of mutual funds and 45 per cent rural households were aware of such products. However, awareness for specialised products, such as futures and options (F&O) continued to remain low in both urban and rural regions at 21 per cent and 7 per cent, respectively.
The study further revealed that despite widespread adoption of digital technology in investing, participation in the securities market is skewed towards men and younger generations. The participation of women in the stock market was a mere 7 per cent compared to 11 per cent for men.
As a cohort, millennials led the adoption of market-linked products, with 8 per cent, while Gen Z showed growing early engagement. On the other hand, older cohorts remained more conservative. The Silver Generation (typically those aged 50 or 60 and above) displayed the highest risk aversion, with 85 per cent prioritising capital safety and limited exposure to securities.
According to the Sebi study, 91 per cent of Indian households remain non-investors. However among these non-investors, 53.50 per cent households were non-investors who are aware of securities and 37 per cent of households are investors who are not aware of securities market products. However, 22 per cent of the non-investors intend to invest with the balance 78 per cent intending not to invest. This indicated that there was an untapped majority of individuals who are yet to participate in the securities market, the study said.
Additionally the study showed that there were certain instances wherein the awareness did not automatically result in participation, as 53 per cent of households were aware of mutual funds, but only 6.70 per cent actually invested.
In order to bridge the gap Sebi has implemented various structural and educational measures, such as micro systematic investment plans (SIPs) and video know-your-customer (KYC) facility and measures to boost awareness, including investor education programs (IEPs) and SMART Initiative.
