Investor participation from Puducherry has increased five-fold in securities market, says SEBI Chairman

While pointing out the growing potential of people in Puducherry to participate in country’s securities market, Chairman of Securities and Exchange Board of India Tuhin Kanta Pandey on Saturday said the territory has reported five-fold increase in investor participation in the financial market.

Speaking at a regional seminar on Investor Awareness here, the SEBI Chairman said people of Puducherry have been showing keen interest in making financial investments. “Over time, the investor participation from Puducherry has increased 5.6 times, rising from 22,000 investors in the financial year 2015 to nearly 1,24,000 now. This growth demonstrates both rising interest and the promising scope for deeper engagement, as individuals seek newer and trusted avenues for investment,” he said. 

Considering the high per capita income and an above national average literacy rate of over 85%, the SEBI Chairman said the territory reflected a population base that was well positioned to engage with financial products confidently.

The potential also brings with it challenges of making people financially literate. Financial literacy stood as the foundation of empowerment, enabling individuals to understand how to save, invest and protect hard-earned money while navigating an increasingly digital and inter-connected financial ecosystem, he said. 

Financial literacy, he added helps people distinguish credible financial opportunities from misleading promises and protects them from misinformation and impulsive decisions. A financially aware citizen was better prepared to participate meaningfully in the economic growth of the nation, he said.

As market access has expanded through technology, new vulnerabilities have emerged. Online scams, deep fake impersonations, fraudulent trading applications, guaranteed return schemes, unregistered advisory groups and manipulative messaging platforms increasingly target unsuspecting individuals, he said. 

In a bid to support investors, he said SEBI has introduced several important measures designed to safeguard participation and strengthen transparency. Facilities to authenticate UPI IDs of the registered intermediaries and provision for instant verification of their bank accounts are available on SEBI website and Saarthi mobile application. The SCORES 2.0 platform and the SMART Online Dispute Resolution System have transformed complaint redressal through auto-routing, transparency in escalation and faster resolution timelines, he said. 

Higher participation of women  

Echoing similar sentiments on Puducherry’s potential, MD and CEO of National Stock Exchange, Ashish Kumar Chauhan said Puducherry remained a significant contributor to country’s economy, particularly through export of chemicals and related products. Around 4,300 companies were registered in Puducherry and one of them was listed in the NSE. 

The investor base of the Union Territory has grown by 17% in the last one year. The female investor participation in Puducherry was the highest in the country at 28.7%, above the national average of 24.7%. The mutual fund assets under management from Puducherry was about ₹4,671 crore. Financial participation from Puducherry has been on the rise, he said.