This report unveils the untapped potential of India's vast household gold reserves and critically examines why, despite being a top global consumer, India lacks influence in global gold pricing. It highlights the strategic push toward gold securitization through instruments like Gold ETFs, Sovereign Gold Bonds, and Electronic Gold Receipts, positioning these as key tools to reduce import dependency and formalize gold ownership. However, it also surfaces regulatory and liquidity bottlenecks—particularly the role of the tax framework—that continue to hinder seamless market development.

Key Observations and Findings

1. India's gold market remains import-dependent and fragmented, limiting its ability to influence international pricing.

2. Securitization of gold is rising but remains insufficient to fundamentally shift India’s role from price taker to price setter.

3. There is a pressing need for a unified regulatory and taxation framework that supports market efficiency and encourages broader participation.

This report presents a deep-dive into India’s evolving regulatory landscape for Over-the-Counter (OTC) commodity derivatives, charting the roles of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). It explores how India’s current framework governs exchange-traded and OTC markets, and examines how domestic corporates are increasingly exploring offshore alternatives for hedging due to limited domestic options. Drawing from international regulatory frameworks, the report identifies key components—like trade reporting and central clearing—that support transparent and resilient OTC markets globally.

Key Observations and Findings

1. Indian corporates exhibit a growing need for effective OTC hedging avenues, given global commodity price exposure.

2. Regulatory clarity and coordination are essential to develop a robust domestic OTC derivatives market.

3. Global best practices reflect the importance of central clearing, real-time trade reporting, and risk control measures.

4. There is significant scope for India to strengthen its institutional infrastructure and operational frameworks to deepen domestic market participation.

This report outlines a compelling roadmap for positioning India as a premier global financial services hub in alignment with the “Viksit Bharat” vision and the “Amrit Kaal” strategy. It highlights India’s emerging leadership in capital markets and international finance, and explores strategic enablers such as regulatory coordination, modernized infrastructure, and global trade integration. Drawing inspiration from the GIFT IFSC model, the report calls for unified efforts across government, regulators, and industry to drive reforms, deepen market access, and attract global capital.

Key Observations and Findings

1. Harmonizing financial regulations and streamlining compliance will facilitate cross-border capital flows and strengthen investor confidence.

2. FTAs and CEPAs hold significant potential to enhance India’s integration with global financial systems.

3. Capacity building—through skill development and institutional strengthening—is essential for sustaining international competitiveness.

4. A Joint Executive Committee (JEC) model can be instrumental in driving coordinated policy execution and strategic oversight.

This report offers a strategic overview of India’s evolving integration with global capital markets, analyzing how financial regulations, market infrastructure, investor participation, and cross-border capital access shape India’s positioning. It contrasts India’s regulatory and market landscape with leading and emerging financial centers, and explores the influence of global frameworks such as IOSCO principles, the EU Capital Markets Union, and the Sarbanes-Oxley Act. The study underscores how India’s moderate level of integration presents both a challenge and an opportunity, calling attention to evolving instruments like FPIs, GDRs, and stock connect models as critical enablers of global market participation.

Key Observations and Findings

1. India shows growing but measured global market connectivity, with scope for improved alignment on dual listings, FPI access, and capital mobility.

2. International standards have significantly shaped the evolution of global primary markets, with comparative insights offering pathways for India’s integration journey.

3. Emerging market experiences reveal how strategic liberalization and targeted reforms can boost investor confidence and cross-border flows.

4. Managing global risks—such as volatility, capital flight, and regulatory spillovers—remains key to safeguarding domestic market stability.

This report presents a thorough examination of retail investor engagement across India's financial landscape, highlighting the growing traction in equities and mutual funds while underscoring untapped potential in corporate bonds, government securities, and derivatives. By introducing the Quality Retail Participation Index (QRPI), it offers a fresh lens to evaluate participation trends across asset classes. Drawing on insights from leading market institutions and global best practices, the report analyzes how factors like financial literacy, ease of access, regional diversity, and evolving regulatory support influence retail behavior and market depth.

Key Observations and Findings

1. Retail participation is concentrated in equities and mutual funds, with lower involvement in bonds, G-Secs, and derivatives.

2. The QRPI provides a holistic measure of retail engagement quality across asset classes and geographies.

3. Access, awareness, and consistent financial education are crucial levers for broadening the retail base.

4. Global case studies reveal the importance of simplified onboarding, tax-friendly regimes, and inclusive market infrastructure.

This report examines the strategic role of Offshore Financial Centers (OFCs) in global finance and positions GIFT IFSC as India’s response to harnessing cross-border capital flows and financial innovation. It showcases how GIFT IFSC is evolving into a competitive global hub by offering tax-efficient structures, regulatory clarity, and infrastructure aligned with international standards. The study compares GIFT IFSC with leading OFCs such as Singapore, Dubai, and Abu Dhabi, analyzing differences in fund structures, investor frameworks, and regulatory regimes. It also highlights GIFT IFSC’s growing appeal across capital-intensive sectors like asset management, aircraft leasing, and shipping.

Key Observations and Findings:

1. GIFT IFSC is emerging as a key node for “onshoring the offshore,” contributing to India’s global financial integration.

2. The center supports India’s economic aspirations by attracting foreign investment through a streamlined, globally aligned framework.

3. Comparative benchmarks reveal competitive strengths and areas for further alignment with global OFC practices.

4. GIFT IFSC’s ecosystem demonstrates rising fund registrations and investor interest, underscoring its relevance in India’s financial globalization journey.

This report provides a strategic lens on the evolving landscape of retail investor participation (RII) in India’s securities markets, highlighting regulatory fragmentation, concentrated participation in select asset classes, and the need for a unified approach to foster inclusivity. It introduces the Quality Retail Participation Index (QRPI) to objectively evaluate engagement, investment quality, and the impact of regulatory measures. Drawing insights from global practices and stakeholder inputs, the report maps key bottlenecks—ranging from definitional inconsistencies to infrastructure and awareness gaps—and emphasizes the growing relevance of digital platforms like the Retail Direct Scheme in broadening RII access.

Key Observations and Findings:

1. Regulatory definitions of retail investors vary across SEBI, RBI, and exchanges, indicating the need for a harmonized framework.

2. Retail participation remains strong in equities and mutual funds but underrepresented in bonds, derivatives, and emerging instruments.

3. QRPI offers a robust metric to track retail investor quality and policy outcomes across segments.

4. Infrastructure, investor awareness, and simplified access channels are central to deepening retail engagement.

This report offers a data-rich exploration of individual trader behavior in India’s equity futures and options (F&O) segment, capturing the sharp rise in retail participation—especially post-COVID—amid evolving digital access and market dynamics. It reveals compelling insights into trading frequency, holding periods, and profitability patterns, spotlighting the growing dominance of options trading and the associated retail experience. The study delves into the structural and behavioral dimensions influencing trading outcomes, including transaction costs, index composition shifts, and broader infrastructure trends, presenting a critical lens on India’s fast-evolving derivatives landscape.

Key Observations and Findings:

1. Retail engagement in F&O surged due to accessible trading platforms, financial awareness drives, and market volatility.

2. A large share of traders experienced net losses, particularly in high-frequency options trading, underscoring the need for deeper awareness.

3. Market structures, including turnover trends and index composition, significantly influence trading outcomes.

4. The report serves as a baseline for understanding how retail behavior shapes and is shaped by India’s derivatives ecosystem.

This report presents a cohesive analysis of Regulatory Impact Assessment (RIA) as a structured tool for advancing transparency, consistency, and evidence-based policymaking in India’s financial regulation landscape. By benchmarking global RIA practices—such as cost-benefit analysis and stakeholder consultation—the study draws attention to the potential of RIA in improving regulatory quality. It also provides sectoral deep-dives into landmark regulatory interventions including SEBI’s Takeover Regulations, 2011 and Foreign Portfolio Investor Regulations, 2019, and outlines the operational transition to the T+1 settlement framework. These examples illustrate the evolution of India’s capital market regulations and the emerging emphasis on streamlined, investor-friendly processes.

Key Observations and Findings:

1. RIA serves as a foundational tool for regulatory efficiency, helping align Indian reforms with global standards.

2. SEBI’s Takeover Code strengthens minority shareholder protections and ensures acquisition transparency.

3. FPI regulations have evolved to broaden access and simplify compliance, reflecting India’s deepening integration with global capital.

4. The T+1 settlement system marks a significant leap in operational agility, reinforcing India’s leadership in financial market innovation.

This report offers a deep and timely reflection on the evolution of financial regulation, tracing the global shift from self-regulation to statutory oversight aimed at ensuring market stability, integrity, and investor trust. It highlights how rapid technological and economic change demands a dynamic “adapt and learn” regulatory approach, replacing the legacy “regulate and forget” mindset. The study emphasizes the critical role of securities regulations in a globally interconnected landscape and explores how international frameworks are shaping India’s regulatory direction. Special focus is given to systemic shifts in sectors like AIFs, Business Trusts, and Mutual Funds—sectors increasingly vital for innovation and capital formation.

Key Observations and Findings:

1. The report underscores the importance of International Regulatory Cooperation (IRC) in promoting harmonized, transparent, and resilient markets.

2. Securities regulations are no longer reactive but must proactively balance innovation with systemic risk management.

3. Institutional reforms in AIFs, Mutual Funds, and Business Trusts are aligned with global benchmarks to foster sustainable growth.

4. India’s regulatory journey is best supported by a principles-based, forward-looking framework rooted in adaptability and global best practices.

This report provides an insightful analysis of the impact of contract design changes in cotton futures trading on the Multi Commodity Exchange (MCX), with a focus on the increase in lot size and its cascading effects across trading volumes, market liquidity, and participant behavior. It highlights how larger contract sizes have altered participation patterns, particularly affecting Farmer Producer Organizations (FPOs), value chain participants, and hedgers. The study also assesses the broader ripple effects on the textile industry, price discovery efficiency, and the responsiveness of physical market participants to futures price signals—especially in contexts of backwardation.

Key Observations and Findings:

1. Increasing contract lot size impacted market participation, reducing accessibility for smaller players in the ecosystem.

2. Futures price dynamics have a direct influence on the operational and procurement strategies of the textile value chain.

3. Backwardation following structural changes hindered effective price discovery and transparency.

4. The design of commodity futures contracts significantly affects liquidity, market inclusivity, and the ability of stakeholders to hedge effectively.

This report presents a focused study on how India’s Micro, Small, and Medium Enterprises (MSMEs) access capital via SME platforms of BSE and NSE, charting their journey from regulatory eligibility to post-listing performance. It highlights the transformative potential of stock market listings in enhancing visibility, financial strength, and formalization of small businesses. By analyzing sectoral and regional trends, listing costs, and compliance structures, the report provides a nuanced view of how capital markets can serve as powerful growth engines for MSMEs navigating India’s evolving economic landscape.

Key Observations and Findings:

1. SME exchanges have emerged as vital platforms for enabling MSME access to public equity funding.

2. Listing outcomes show marked improvements in financial performance, market credibility, and tax contribution.

3. Cost and compliance remain critical considerations in MSME decision-making around listings.

4. A clearly defined regulatory framework—including migration criteria—guides MSME engagement with capital markets.

This report offers a timely analysis of India’s financial redressal mechanisms and the regulatory landscape surrounding unclaimed private financial assets. Triggered by key developments such as the Supreme Court’s ruling in Writ Petition (C) No. 162 of 2023 and the Justice Sapre Committee’s findings, the study highlights the growing need for investor protection, inter-regulatory coordination, and structured management of unclaimed assets. It evaluates the roles of RBI, SEBI, PFRDA, and IRDA in managing these assets and underscores how technological innovations can enhance verification, tracking, and resolution systems for rightful asset recovery.

Key Observations and Findings:

1. The current framework for managing unclaimed financial assets is fragmented across regulators and calls for greater coordination.

2. Investor protection mechanisms are being increasingly emphasized in judicial and committee-led reviews of regulatory processes.

3. Digital infrastructure offers significant potential to modernize the tracking and reunification of unclaimed assets.

4. A unified and structured redressal system can support financial inclusion, transparency, and public trust in market institutions.

This report provides a rich comparative analysis of national capital market master plans from countries such as Malaysia, Kenya, Nigeria, Ghana, and Zambia, offering a global perspective on strengthening capital markets through phased implementation, regulatory coordination, and strategic governance. By examining how different economies tailor their approaches to fit local realities while aligning with broader economic goals, the study draws out critical lessons for institutional design, investor confidence, and infrastructure readiness. It emphasizes the importance of coherent frameworks that integrate market development with national economic aspirations.

Key Observations and Findings:

1. Regulatory clarity and institutional alignment are foundational to successful capital market reforms.

2. Investor protection, financial inclusion, and robust infrastructure emerge as common priorities across master plans.

3. Tailored strategies that respect local financial ecosystems enhance plan effectiveness and sustainability.

4. Knowledge-building and multi-stakeholder engagement play a pivotal role in long-term capital market evolution.

This report offers a strategic overview of the evolving cyber security landscape in India’s securities markets, highlighting the rising frequency and complexity of cyber threats and the need for a resilient digital infrastructure. It reviews key legal frameworks, including the Information Technology Act, and evaluates the roles of institutions such as NCIIPC, CERT-In, and SEBI in safeguarding market integrity. Drawing from both global and domestic cyber incidents, the report analyzes vulnerabilities in the financial ecosystem and explores how leading regulators in the U.S., U.K., Saudi Arabia, Singapore, and Australia are addressing similar challenges through proactive regulatory practices.

Key Observations and Findings:

1. 1. Cyber threats are increasingly sophisticated, requiring coordinated regulatory and institutional responses.

2. Existing Indian frameworks lay a strong foundation, supported by sector-specific guidelines issued by SEBI for MIIs and market participants.

3. Global comparisons reveal the importance of adaptive regulation, real-time surveillance, and cross-border cooperation.

4. Case studies underscore the need for preparedness, incident response protocols, and robust governance in cyber risk management.

This report delivers a deep-dive analysis into the evolution and effectiveness of Business Responsibility Report (BRR) filings by listed Indian companies, tracing the journey from the National Voluntary Guidelines (NVGs) to the more structured National Guidelines on Responsible Business Conduct (NGBRC) and the recently mandated Business Responsibility and Sustainability Reporting (BRSR) framework. Evaluating disclosures over multiple years, the study highlights both progress and persisting gaps in the quality of non-financial reporting. It underscores BRR's increasing relevance in the ESG ecosystem and draws comparative insights from international practices to assess how Indian companies are aligning with global responsible business norms.

Key Observations and Findings:

1. The transition from BRR to BRSR reflects a regulatory shift toward structured, sustainability-focused corporate disclosures.

2. While compliance is improving, consistency and depth of disclosures vary widely across sectors and companies.

3. Knowledge gaps and differing interpretations of regulatory expectations influence disclosure quality.

4. BRR plays a foundational role in India's ESG narrative, linking regulatory reporting to stakeholder trust and market reputation.

This report offers a comprehensive examination of the transformation and regulatory oversight of Market Infrastructure Institutions (MIIs) in India—namely stock exchanges, clearing corporations, and depositories. It traces their journey from member-owned entities to corporatized and demutualized institutions, reinforcing their foundational role in facilitating secure and efficient market operations. The report studies SEBI’s evolving regulatory approach and presents global comparisons with MII governance models in the U.S., U.K., Canada, and Europe, providing insights into international trends in ownership, institutional control, and systemic integrity.

Key Observations and Findings:

1. 1. MIIs have matured into critical components of India’s capital markets, reflecting increased corporatization and governance focus.

2. SEBI’s regulatory framework has evolved in line with global benchmarks, ensuring market integrity and investor confidence.

3. International comparisons show a common shift towards commercial governance models with strong regulatory safeguards.

4. Robust governance, transparent ownership structures, and accountability mechanisms are key to sustaining trust in MIIs.

This report offers a structured comparison of the regulatory regimes governing company deposits and debt securities in India, with a focus on understanding how differing compliance norms, fund usage rules, and investor protection standards influence corporate behavior and market outcomes. Anchored in the provisions of the Companies Act, 2013 and the SEBI Act, 1992, the study reveals how varied regulatory treatments create different risk and return profiles for investors, often prompting firms to prefer one route over the other based on structural advantages. Supported by empirical survey data, the report documents real-world patterns in fundraising, interest rate structures, and default experiences.

Key Observations and Findings:

1. Company deposits and debt securities are governed by distinct regulatory frameworks, resulting in uneven investor protections and cost structures.

2. Debt securities offer more market-aligned flexibility, while deposits are subject to predefined regulatory ceilings.

3. Divergent exit and compliance mechanisms shape the way companies access and use funds under each instrument.

4. A clearer understanding of these frameworks is essential for policy alignment, market transparency, and informed investor decisions.

This report offers a detailed comparative analysis of the regulatory frameworks governing company deposits and debt securities, emphasizing how differences in compliance norms, interest rate treatment, and investor protection impact market practices and corporate decision-making. Grounded in the Companies Act, 2013 and the SEBI Act, 1992, the study illustrates how companies navigate between these instruments based on structural and regulatory factors. It draws on empirical data from company surveys to assess fundraising behaviors, defaults, and enforcement trends, providing a grounded understanding of how current frameworks shape real-world outcomes.

Key Observations and Findings:

1. Company deposits and debt securities follow distinct regulatory regimes, leading to variation in investor protections and cost structures.

2. Interest rate regulations are more flexible in debt securities, influencing issuer preference and market competitiveness.

3. Survey data reflects how firms adjust fundraising strategies based on regulatory nuances and enforcement environments.

4. Regulatory divergence opens space for arbitrage, reinforcing the need for alignment to promote fairness and efficiency.

This report delivers a detailed evaluation of the margining framework across India’s equity, derivatives, and commodity markets, tracing its regulatory evolution and benchmarking it against global best practices. It examines how margin policies—designed to manage risk and safeguard market integrity—are structured, applied, and updated. The study highlights critical operational aspects, including margin model calibration, information dissemination, and review frequency, offering insights into how these elements affect market liquidity, trading efficiency, and systemic resilience.

Key Observations and Findings:

1. Margin models vary across segments, with room for greater consistency in review cycles and risk parameter updates.

2. Conservative configurations, such as high damping factors and static Price Scan Ranges, may impact trading flexibility.

3. Absence of concentration margins in certain segments points to potential risk exposure gaps.

4. Transparent communication of risk metrics is essential to ensure informed decision-making and participant confidence.
 

This report presents a detailed assessment of the risk management framework governing India’s mutual fund industry, mapping current practices, evolving investor patterns, and the regulatory environment. It highlights rising retail and institutional participation—particularly in ETFs and hybrid schemes—and examines how regional trends and product preferences shape the risk landscape. Drawing on case studies from leading fund houses, the report identifies critical vulnerabilities in managing liquidity, market, and distribution risks. It also benchmarks India’s regulatory approach against global practices, offering insights into how the industry can evolve toward a more principle-based and adaptive risk culture.

Key Observations and Findings:

1. Growth in mutual fund participation is broad-based, with increasing traction in non-metro regions and equity-oriented products.

2. Incidents across major fund houses illustrate the need for dynamic risk identification and mitigation strategies.

3. Current frameworks remain largely rule-based, with scope for enhanced flexibility and scenario-based stress management.

4. International comparisons highlight the benefits of integrated, forward-looking risk management and disclosure practices.

This report presents an insightful evaluation of emerging global technologies and their applicability to India’s securities market, with a focus on how Market Infrastructure Institutions (MIIs) like NSE and BSE are leveraging tools such as AI, cloud computing, and machine learning to improve efficiency and cyber resilience. It reviews international innovations—including Hong Kong’s FINI platform and the European Central Bank’s AI-driven processes—highlighting the global momentum toward tech-integrated financial systems. The report also discusses regulatory adaptations such as sandbox frameworks and examines the growing role of APIs and open-source technologies in shaping agile and secure capital markets.

Key Observations and Findings:

1. Indian MIIs are progressively adopting advanced technologies, enhancing transparency and operational agility.

2. Global practices demonstrate how strategic tech adoption can transform regulatory, risk, and execution models.

3. Flexible regulatory tools like sandboxes are facilitating innovation while safeguarding systemic integrity.

4. APIs and open-source platforms are accelerating innovation in financial infrastructure and investor services.

This report presents a comprehensive framework for elevating GIFT IFSC’s global standing, drawing from the Department of Economic Affairs’ enhanced mandate and insights from the Global Financial Centers Index (GFCI). It evaluates seven core pillars—ranging from economic freedom to taxation and talent ecosystems—using long-term data across 54 countries to assess factors influencing international competitiveness. Drawing lessons from financial centers like Singapore and Denmark, the report identifies priority areas such as healthcare, cost of living, and talent retention for GIFT IFSC’s continued ascent. It also benchmarks IFSCA’s regulatory sandbox against global models, highlighting its alignment and future potential.

Key Observations and Findings:

1. GIFT IFSC’s competitiveness hinges on institutional reforms and holistic ecosystem development.

2. Global rankings are strongly influenced by governance indicators like political stability and regulatory quality.

3. Targeted improvements in infrastructure, social environment, and talent mobility are essential for progress.

4. IFSCA’s sandbox reflects global alignment, with room to scale innovation and cross-border collaboration.

This report offers a detailed assessment of the evolution and implementation of Know Your Customer (KYC) norms in India’s securities markets, with a focus on balancing regulatory compliance, digital innovation, and investor protection. It maps the shift from traditional verification to tech-enabled onboarding solutions like video and Aadhaar-based e-KYC, while addressing critical concerns around data security, exclusion risks, and process standardization. Anchored in the Prevention of Money-Laundering Act (PMLA) and SEBI’s regulatory framework, the study evaluates the operational roles of KRAs and CKYCR, and highlights the need for an integrated, efficient, and investor-centric KYC system.

Key Observations and Findings:

1. KYC norms have progressed from paper-based processes to digital-first models, improving reach and efficiency.

2. Regulatory responsibilities are split between KRAs and CKYCR, requiring stronger synchronization and data governance.

3. Implementation gaps and inconsistent practices affect uniformity and investor experience across intermediaries.

4. A harmonized, secure KYC framework is crucial for boosting financial inclusion and sustaining market integrity.

This report provides a detailed examination of the stamp duty structure in India’s securities market, highlighting the operational challenges arising from varied state-wise rates and procedures. It assesses how this fragmented framework contributes to higher transaction costs, reduced liquidity, and compliance burdens, ultimately impacting market efficiency and participation. Through global comparisons, the report contextualizes India’s position on competitiveness and advocates the role of digital transformation in streamlining collection systems and enhancing transparency. It offers a holistic view of how stamp duty influences trading behavior and administrative efficiency in capital markets.

Key Observations and Findings:

1. Varying stamp duty rates across states contribute to administrative complexity and procedural inefficiency.

2. High transaction costs due to stamp duty may affect market liquidity and investor participation.

3. India’s rates are relatively higher when benchmarked against global practices, affecting capital market competitiveness.

4. Digitization and centralized processes offer strong potential for improving transparency and operational efficiency.

This report offers a focused analysis of SEBI’s Peak Margin framework, introduced in December 2020 to enhance intraday risk management by collecting margins based on peak exposure rather than end-of-day positions. The study explores the rationale behind the reform—primarily to reduce leverage and improve default control—and examines its phased implementation across market segments. It captures diverse market responses, including shifts in trading behavior, volume patterns, and investor strategies across equities and commodity derivatives. The report also documents variations in outcomes between platforms like NCDEX and MCX, providing a data-backed view of evolving market dynamics under the new margining regime.

Key Observations and Findings:

1. The Peak Margin framework aims to strengthen systemic resilience by minimizing leverage-induced risks.

2. Equity and stock futures markets adapted with marginal volume shifts and increased turnover, reflecting stable investor interest.

3. Commodity markets showed mixed outcomes, indicating segment-specific impacts of the margining model.

4. The system influenced trading preferences, with rising interest in options signaling evolving risk-taking strategies.

This report explores the structural and regulatory segmentation between India’s Government Securities (G-Sec) and Corporate Bond markets, highlighting the operational inefficiencies and investor access challenges arising from dual oversight by the RBI and SEBI. It evaluates market dynamics, participation trends, and transaction infrastructure, underscoring how fragmented governance and high transaction costs limit seamless capital flow. Drawing lessons from international frameworks, the study presents a roadmap for creating an integrated debt market ecosystem in India that is transparent, liquid, and accessible across investor categories.

Key Observations and Findings:

1. Regulatory bifurcation limits market interoperability and complicates investor navigation between G-Secs and corporate bonds.

2. Infrastructure and procedural inconsistencies contribute to reduced liquidity and uneven investor participation.

3. High transaction costs and operational frictions act as barriers to market deepening.

4. Global integration models emphasize unified platforms, regulatory coherence, and standardized market practices.

This report presents a comprehensive overview of the Alternative Investment Fund (AIF) ecosystem in India, capturing its rapid growth as a provider of risk capital across sectors like healthcare, retail, digital, and financial services. It analyzes fund structures, capital deployment trends, and category-wise contributions—especially the dominance of Category II AIFs and the emerging presence of Category I vehicles. Drawing from SEBI-sourced data and industry patterns, the study highlights how AIFs offer a flexible alternative to traditional funding channels and play a pivotal role in channeling long-term capital into India's growth sectors.

Key Observations and Findings:

1. AIFs have emerged as a key channel for mobilizing institutional and private capital into high-growth sectors.

2. Category II AIFs dominate fund flows, while Category I AIFs are gaining momentum with focused sponsorship.

3. Fund sizes and capital concentration reflect increasing institutional confidence and maturity in the ecosystem.

4. AIFs complement existing financial instruments by offering greater structural and investment flexibility.

This report offers a strategic comparison of leading International Financial Services Centres (IFSCs)—including Dubai, Singapore, Hong Kong, and London—with India’s IFSCA, identifying best practices and key success factors that drive global competitiveness. It evaluates regulatory structures, governance models, and product ecosystems across these jurisdictions, highlighting the role of innovation, infrastructure, and international regulatory alignment in building resilient financial hubs. The study provides a benchmark-driven perspective on how IFSCA can enhance its institutional framework to attract global investors and deepen India’s integration with the international financial system.

Key Observations and Findings:

1. Global IFSCs thrive on agile regulation, strong infrastructure, and cross-border market access.

2. Investor protection and regulatory transparency are central to maintaining global trust and stability.

3. Diversification into emerging areas like green finance and digital assets boosts market relevance.

4. IFSCA can leverage global insights to refine its regulatory model and position India as a leading offshore financial centre.

This report provides a timely examination of the need for standardized valuation practices for unlisted equity in India, driven by the exponential growth of the start-up ecosystem and increasing activity in alternative investment vehicles like AIFs. It highlights the complexities arising from disparate valuation norms under the Income Tax Act, FEMA, SEBI regulations, and the Companies Act, and underscores the importance of adopting a harmonized, fair-value-based approach. Drawing on international benchmarks and ICAI’s valuation standards, the study evaluates current challenges and proposes the strengthening of valuation infrastructure to support transparency, tax certainty, and investor confidence.

Key Observations and Findings:

1. Multiple statutes prescribe varying valuation rules, creating regulatory fragmentation and compliance uncertainty.

2. A principles-based fair value approach, rooted in arm’s length assessments, is critical for market integrity.

3. Robust valuation infrastructure and trained professionals are essential for accurate, consistent outcomes.

4. Global best practices favor harmonized frameworks to facilitate cross-border investment and tax clarity.

This report presents a detailed analysis of the taxation landscape governing Alternative Investment Funds (AIFs) in India, emphasizing their critical role in channeling capital into startups and diverse business sectors. It reviews the applicable tax provisions under current laws and identifies key areas of complexity, such as the treatment of management fees, accrued but unrealized income, and carried interest. By examining the characterization of income streams and differential treatment of business versus non-business income, the study highlights how tax ambiguities influence fund structuring, investor returns, and overall market participation.

Key Observations and Findings:

1. Multiple interpretations of income types impact tax predictability for sponsors, managers, and investors.

2.The treatment of carried interest and unrealized income remains a central area of discussion in AIF taxation.

3. Taxation rules affect not just returns, but also fund design, compliance strategy, and investor sentiment.

4. Greater consistency and clarity in tax provisions can support AIF sector growth and long-term capital formation.

This analysis explores share pledging by promoters in India, where equity is used as collateral to raise funds. While this offers liquidity, it can impact market stability and investor confidence if not managed properly.

The paper outlines the mechanics of pledging, compares international practices, and examines its implications on stock volatility, corporate governance, and lender risk. It finds that high levels of pledging may influence investor sentiment, dividend policies, and financing decisions.

A review of the Companies Act, SEBI regulations, and Depositories Act highlights the need for stronger disclosures, risk controls, and uniform compliance standards.

Key Observations and Findings:

1. Pledging is a useful financing tool but requires robust oversight.

2. Excessive pledging may affect stock performance and investor trust.

3. Clearer regulatory practices can mitigate associated risks.

The report provides a comprehensive overview of the mutual fund industry’s growth, rising AUM, and the increasing number of fund houses and schemes. It underscores the industry’s growing importance in India’s financial ecosystem and highlights key areas for strengthening resilience and investor trust.

A major focus is on liquidity risk management, especially in light of events like the COVID-19 pandemic. The report recommends adopting global best practices such as liquidity-based asset classification, stress testing, and transparent risk policies to manage large-scale redemptions.

The report also stresses the need for formal contingency planning, including reserves and disaster management protocols, to ensure business continuity during crises. On market risk, it suggests enhanced hedging, portfolio rebalancing, and use of derivatives in line with SEBI’s risk management framework.

For investor protection, the report calls for independent financial literacy initiatives and proposes a Mutual Fund Information Cell to boost awareness and transparency.

Key Observations and Findings:

1. Calls for stronger liquidity and market risk management.

2. Emphasizes contingency planning and crisis preparedness.

3. Promotes investor education and protection through structured outreach.

This report explores the regulatory framework and strategic role of share buybacks in India, where companies repurchase their own shares to return surplus cash, enhance earnings per share (EPS), and signal market confidence. Initially restricted, buybacks were permitted following amendments to the Companies Act in 1998, and have since become a key tool in corporate capital management.

The report offers a comparative overview of international buyback regulations, drawing from jurisdictions like the USA, UK, Germany, France, and Australia. These global practices range from highly flexible regimes to those with stricter controls, reflecting diverse approaches to balancing market efficiency and investor safeguards.

Within the Indian context, the report evaluates current provisions under the Companies Act, 2013 and the SEBI (Buy-back of Securities) Regulations, 2018. It highlights opportunities to further refine the framework to enhance clarity, transparency, and consistency, helping ensure that buybacks serve their intended economic purpose.

The empirical analysis of recent trends shows that buybacks in India are used for price stabilization, capital restructuring, and returning value to shareholders. While these actions generally reinforce market sentiment, the report encourages continued attention to corporate governance and disclosure practices to uphold investor confidence.

Key Observations and Findings:

1. Buybacks serve as a strategic financial tool for Indian corporates.

2. Global regulatory comparisons offer models for refinement and alignment.

3. Disclosure and procedural enhancements can support greater transparency.

This analysis explores the impact of Minimum Public Shareholding (MPS) on price discovery and market liquidity in the Indian stock market, with a specific focus on Public Sector Enterprises (PSEs) and Public Sector Banks (PSBs) that have public shareholding below the mandated 25% threshold. It emphasizes that maintaining adequate public float plays a vital role in promoting transparent trading, preventing price manipulation, and enabling efficient market functioning.

The report examines a sample of listed entities with lower public shareholding and compares them with Nifty 50 companies that meet the MPS norms. Through event analysis and market data comparisons, it observes that companies with higher public float consistently demonstrate better liquidity metrics, including higher traded volumes, lower impact cost, and increased deliverable trades.

A review of international frameworks further reinforces the finding that jurisdictions with higher public shareholding norms tend to exhibit greater market transparency and participation. In India, the MPS framework is governed by SEBI regulations, which have facilitated compliance through mechanisms such as the Offer for Sale (OFS) route.

Empirical trends highlighted in the report suggest that compliance with MPS norms leads to notable improvements in liquidity parameters and strengthens price discovery processes, ultimately benefiting all market participants.

Key Observations and Findings:

1. Higher public shareholding supports better market liquidity and fairer pricing.

2. Global practices validate the benefits of robust public float norms.

3. MPS compliance contributes to enhanced investor engagement and market efficiency.

This report examines the impact of the COVID-19 pandemic on India’s mutual fund industry, analyzing performance trends across equity, debt, and gold-based mutual fund segments over a six-month period before and after the onset of the pandemic. The study also considers the investment behavior of both foreign and domestic institutional investors during this time of heightened uncertainty.

The equity market faced a sharp downturn, reflecting global volatility, but the mutual fund industry showed signs of resilience with a gradual recovery in Assets Under Management (AUM) post-March 2020. This recovery was supported by underlying economic fundamentals and timely regulatory interventions that helped restore investor confidence.

Debt mutual funds experienced a divergent impact—credit risk funds witnessed sustained outflows due to risk aversion, while corporate bond and gilt funds demonstrated stability, signaling a preference for safer, high-quality fixed-income instruments.

Gold ETFs stood out as a safe haven, with investor interest surging significantly during the crisis period. This shift highlighted gold’s traditional role in capital preservation during financial uncertainty.

Key Observations and Findings:

1. Equity mutual funds faced short-term shocks but rebounded with broader market recovery.

2. Safer debt instruments gained traction, while credit risk funds saw cautious withdrawals.

3. Gold ETFs saw robust inflows, reaffirming investor preference for secure assets during volatility.

This report examines the feasibility and advantages of introducing a unified Dematerialized (Demat) account for all financial assets in India. By consolidating instruments such as equities, bonds, insurance policies, and bank deposits into a single platform, the initiative aims to simplify financial asset management and enhance overall investor experience.

The report outlines the current landscape of Demat usage and highlights key benefits of a unified account—streamlined portfolio management for investors, reduced administrative effort for issuers, and improved regulatory oversight and tax compliance for the government. It also notes the importance of implementing strong cybersecurity frameworks to safeguard against data-related risks.

A detailed review of legal and regulatory frameworks underscores the need for coordinated reforms across bodies like SEBI, RBI, IRDAI, and PFRDA. Proposed amendments to existing legislation are intended to facilitate smooth integration and interoperability across asset classes.

The report proposes a phased rollout, beginning with the inclusion of e-insurance and e-NPS accounts, allowing for operational testing before expanding to a broader range of financial products.

Key Observations and Findings:

1. A single Demat account can increase transparency and reduce investor effort.

2. Legal harmonization and inter-regulatory coordination are essential for success.

3. A phased approach will ensure operational readiness and stakeholder adaptation.

This study assesses the impact and structure of the Securities Transaction Tax (STT) in India, introduced in 2004 to streamline taxation on market transactions and promote long-term investment. It evaluates the tax's effectiveness in achieving its original goals—efficient revenue collection, curbing speculative activity, and incentivizing stable investments.

A historical overview explains STT’s role in replacing capital gains tax structures, followed by a detailed analysis of its performance. The report highlights that while market turnover has grown significantly, STT revenue has not kept pace, suggesting inefficiencies in the current tax design.

The report reviews the effect of STT on trading costs, investor behavior, market turnover, and volatility, noting that the tax constitutes a significant portion of transaction costs in the cash segment, potentially discouraging long-term investors and contributing to speculative trading patterns. It also identifies a disproportionate contribution from equity derivatives, particularly futures, as compared to cash market transactions.

Drawing on international practices, the report examines transaction tax models in markets like the UK and France, highlighting structural differences that inform potential improvements for India’s framework.

Key Observations and Findings:

1. STT has become a major component of trading costs, especially in the spot market.

2. Revenue growth from STT lags behind market expansion, calling for structural review.

3. Global models offer lessons on balancing tax efficiency and market development.

This analysis explores strategies to strengthen the integration of commodity spot markets with derivative markets in India, with a focus on agricultural commodities. It examines the existing market landscape and proposes reforms aimed at building a seamless, transparent, and efficient commodity trading ecosystem.

Beginning with the historical context, the report highlights key challenges in APMC-regulated markets, such as fragmentation, limited infrastructure, and weak price discovery mechanisms. It acknowledges the role of reforms like e-NAM and emerging e-trading platforms in improving market accessibility and transparency, while emphasizing the need for consistent regulatory oversight to maintain platform integrity.

The report also reviews the contributions of Farmer Producer Organizations (FPOs) and the enabling environment provided by the Farm Acts of 2020, which support a market-driven approach to agricultural trade. It underscores the importance of regulatory coordination and digital infrastructure in advancing these reforms.

A comparative analysis of global commodity markets showcases international models that effectively integrate spot and derivatives trading. The report identifies critical enablers such as robust warehousing systems, quality assaying facilities, and the use of electronic Negotiable Warehouse Receipts (eNWRs) to ensure seamless transaction flow between markets.

Key Observations and Findings:

1. e-trading platforms and FPOs can enhance market access and price efficiency.

2. Infrastructure like warehousing and eNWRs is essential for market linkage.

3. International best practices offer guidance for institutional reform and integration.

This report,  presents a strategic roadmap to increase hedger participation in India’s commodity derivatives market. It underscores the importance of effective hedging for businesses facing volatile commodity prices, which directly impact cost stability and profit margins across supply chains.

Despite the presence of commodity derivative exchanges in India, several structural and operational challenges limit onshore hedging activity. These include a limited product suite, low liquidity, absence of OTC derivative offerings by domestic banks, and credit risk concerns linked to clearing members. Public sector undertakings (PSUs), in particular, exhibit limited engagement due to policy constraints and operational uncertainties.

The report also highlights tax and compliance-related barriers, such as complexities in GST treatment for physical deliveries and collateral requirements on exchanges, which deter broader participation and lead many businesses to hedge via offshore markets offering more flexible, liquid, and customized solutions.

To address these issues, the report recommends enabling Indian banks to offer OTC commodity derivatives, introducing market-making incentives, improving margin portability, and creating contingency funds to manage credit risks. It also suggests simplifying compliance procedures, especially for PSUs, and conducting education and awareness campaigns to demonstrate the strategic value of hedging.

Key Observations and Findings:

1. Hedging is vital for mitigating commodity price risks in volatile markets.

2. Domestic constraints drive Indian entities to prefer offshore hedging platforms.

3. Institutional reforms and product innovation are essential to deepen market participation.

This report reviews the state of market surveillance in India, emphasizing its role in ensuring market integrity and aligning with IOSCO principles. It introduces the Market Monitoring Index (MMI)—a real-time tool based on 40 market parameters like volatility, liquidity, and governance—to enhance proactive oversight.

The report highlights global practices from the US, UK, and Singapore, showcasing how AI, big data, and blockchain have improved surveillance capabilities. It proposes the formation of a unified body, the Financial Surveillance Monitor of India (FSMI), to coordinate efforts across SEBI, RBI, and MCA.

Key Observations and Findings:

1. Surveillance must be tech-enabled and globally aligned.

2. MMI provides real-time market insights for timely action.

3. FSMI can unify regulatory efforts for stronger oversight.

This report underscores the critical role of financial literacy in fostering personal financial well-being and national economic stability. With a majority of Indian adults lacking basic financial knowledge, the report highlights the urgent need to equip citizens with skills in budgeting, saving, investing, and managing financial risks.

Global and domestic surveys place India among the lowest in financial literacy, exposing a widespread knowledge gap. To address this, the report advocates for integrating financial education into school curricula, particularly through mathematics and life skills, under the guidance of the Ministry of Education.

Innovative methods such as digital tools, gamification, and e-learning platforms are proposed to make financial education engaging and accessible. The report also calls for targeted programs for women to bridge gender disparities and enhance household-level financial awareness.

Key Observations and Findings:

1. Financial illiteracy is a major barrier to individual and economic empowerment.

2. Early education and curriculum integration are vital to long-term change.

3. Digital platforms and gamified tools can enhance reach and impact.

4. Women-focused initiatives can multiply financial awareness in communities.

This report presents a forward-looking blueprint for implementing a Regulatory Impact Assessment (RIA) framework within the Securities and Exchange Board of India (SEBI). It highlights RIA as a vital tool for evaluating the anticipated outcomes of regulatory proposals, ensuring that interventions are effective, evidence-based, and aligned with SEBI’s core objectives of investor protection, fair competition, and market integrity.

The report introduces the economic rationale for RIA, emphasizing its role in supporting transparent, accountable, and results-driven regulation. It draws upon global best practices from the OECD, World Bank, and IOSCO, outlining essential RIA components such as problem definition, evaluation of regulatory alternatives, stakeholder consultation, and impact analysis.

Recognizing SEBI’s evolving regulatory responsibilities, the report proposes a structured RIA model that includes cost-benefit analysis, ex-ante assessment, and post-implementation review. It calls for embedding RIA within SEBI’s existing processes to ensure continuous alignment with dynamic market conditions and international benchmarks.

Key Observations and Findings:

1. RIA fosters high-quality, outcome-oriented regulation.

2. Global examples demonstrate the value of structured, consultative impact assessments.

3. A formal RIA framework can enhance regulatory clarity and market responsiveness.

4. Institutionalizing RIA promotes long-term regulatory effectiveness and trust.

This report analyzes the cost differences between public and private placements in India’s corporate bond market, highlighting why issuers often favor private placements due to their lower costs and quicker execution. Public placements involve higher expenses from compliance, ratings, and marketing, while private placements are more cost-efficient.

It draws on global practices—such as grant schemes in Singapore and Hong Kong—that incentivize public bond issuances, suggesting similar approaches for India. The report also recommends setting up a Corporate Bond Guarantee Fund and an Early Warning System to enhance investor confidence.

It notes the dominance of financial sector issuers and calls for greater participation from non-financial and lower-rated entities to deepen the market.

Key Observations and Findings:

1. Cost and procedural efficiency favor private placements.

2. Global models support public issuances via cost-sharing.

3. Issuer diversity and credit spectrum need expansion.

This report presents a structured approach to establishing a uniform valuation framework for corporate bonds in India, aiming to enhance transparency, consistency, and investor confidence across financial markets. Recognizing the diversity of institutional investors—such as mutual funds, banks, insurance companies, and pension funds—which operate under different regulators like SEBI, RBI, IRDAI, and PFRDA, the report emphasizes the need for a cohesive valuation methodology to support accurate pricing and fair market practices.

Drawing from international best practices, the report observes that while developed markets often rely on market-based pricing, several developing countries use specialized bond valuation agencies to ensure price reliability. In the Indian context, existing valuation providers like CRISIL, IMACS, and FIMMDA apply varied methodologies, leading to pricing differences.

To address this, the report proposes a hybrid valuation model that combines:

1. Securities Level Valuation (SLV) for actively traded bonds

2. A poll-based matrix approach for less liquid bonds

3. Outlier removal and VWAP-based pricing for traded instruments

4. A yield matrix for non-traded bonds, informed by institutional inputs

Key Observations and Findings:

1. Fragmented valuation practices affect pricing consistency across institutions.

2. A unified framework can improve comparability, pricing accuracy, and trust.

3. A hybrid model balances market-based pricing with structured input-driven valuation for illiquid bonds.

The study explores the cost dynamics and market preferences shaping corporate bond issuances in India, with a focus on understanding why companies often favor private placements over public issuances. It analyzes the cost structures associated with each route and proposes actionable steps to make public placements more attractive and competitive.

The analysis outlines key factors influencing corporate preference for debt over equity—such as tax efficiency and the desire to retain ownership control. It highlights that public bond issuances, while offering wider investor access and transparency, involve relatively higher upfront costs due to compliance, credit ratings, advertising, and distribution expenses. In contrast, private placements offer a faster, more cost-effective route, particularly for repeat issuers.

A comparative perspective shows how markets like Singapore and Hong Kong support bond issuance through grant funds that reimburse initial costs, encouraging broader market participation. Inspired by these practices, the study proposes similar initiatives in India, including the creation of a Corporate Bond Guarantee Fund and an Early Warning System to enhance market resilience and investor trust.

It also notes that while private placements are widely used across various sectors, public placements remain concentrated, particularly among financial issuers. Expanding public market access to non-financial and lower-rated issuers can help diversify and deepen the corporate bond ecosystem.

Key Observations and Findings:

1. Cost efficiency and procedural simplicity drive the preference for private placements.

2. Public bond issuance can benefit from cost-sharing mechanisms and support schemes.

3. Diversifying issuer profiles will enhance market depth and resilience.

4. Institutional frameworks can foster transparency and wider investor participation.

The study explores the potential of enabling Direct Market Access (DMA) for retail investors in India through Aadhaar-enabled e-KYC, aiming to simplify participation in the securities market and promote financial inclusion. By offering investors the option to trade directly—without intermediaries—DMA can facilitate faster execution, lower transaction costs, and enhance control over investment decisions.

Drawing insights from global practices in markets like the US, UK, and Singapore, the study distinguishes between one-touch DMA (broker-assisted) and zero-touch DMA (fully broker-free), both of which have contributed to greater market efficiency and investor autonomy in those jurisdictions. These international models offer a valuable roadmap for DMA adoption in India.

To ensure responsible participation, the proposed DMA framework in India includes eligibility conditions such as robust e-KYC verification, minimum capital thresholds, and a basic understanding of market operations. These measures are designed to safeguard investors and uphold market stability.

The operational roadmap includes steps from account setup and real-time verification to clearing and settlement, with an initial focus on investment-backed trades rather than speculative activities. This phased and cautious approach ensures that the transition is smooth and risk-mitigated.

Key Observations and Findings:

1. DMA can empower retail investors with faster, cost-effective access to the stock market.

2. International models demonstrate the viability of DMA in enhancing market efficiency.

3. A phased rollout with strong safeguards can ensure secure adoption in India.

4. Limiting DMA initially to fully funded trades promotes investor protection.

This analysis focuses on the imperative of harmonizing the Companies Act, 2013 with key securities market laws to improve regulatory clarity, streamline compliance, and strengthen India’s financial ecosystem. As India's corporate and capital markets evolve, aligning legal frameworks becomes crucial to ensure consistency in governance, investor protection, and market operations.

Tracing the legislative journey from the socialistic foundations of the Companies Act, 1956 to its modern, market-oriented successor in 2013, the study reflects on pivotal developments such as the inclusion of Section 55A, which enhanced SEBI's oversight of listed entities. This marked a shift toward coordinated regulation and established the foundation for further legal alignment.

A detailed comparison between the Companies Act, SEBI Act (1992), Securities Contracts (Regulation) Act (1956), and Depositories Act (1996) highlights areas where harmonization can add value—particularly in issue management, corporate governance, auditing standards, and director-related provisions. Aligning these aspects can reduce ambiguity, prevent duplication, and promote efficient compliance.

The analysis underscores the importance of a coordinated regulatory architecture, especially given the involvement of multiple financial sector regulators such as SEBI, IRDAI, and PFRDA. Improved collaboration and clearer demarcation of responsibilities can enhance regulatory efficiency and foster a more unified market environment.

Key Observations and Findings:

1. Legal harmonization can reduce compliance complexity and enhance regulatory clarity.

2. Historical reforms demonstrate India’s progression toward market-aligned regulation.

3. Coordinated oversight improves investor protection and regulatory effectiveness.

4. Greater inter-regulator collaboration can lead to a more agile and transparent system.

This report analyzes the interplay between the growth of Assets Under Management (AUM) in India’s mutual fund industry and the market capitalization of the Nifty 50 Index during the period from May 2015 to May 2018. Framed within the regulatory ecosystem guided by SEBI (Mutual Funds) Regulations, 1996, it reflects investor confidence in India’s capital markets and the growing reliance on mutual funds as a structured investment avenue.

The study highlights that mutual fund AUM growth has been powered by both fresh inflows and market performance, with investor behavior showing a strong inclination towards disciplined, long-term financial planning. The high correlation coefficient between AUM and Nifty 50 market cap underscores the mutual fund industry's sensitivity to market dynamics, yet also demonstrates its strength in attracting consistent investor contributions, irrespective of market fluctuations.

Key Observations and Findings:

1. AUM growth is significantly influenced by investor sentiment and consistent inflows, not just market movements.

2. The strong correlation with Nifty 50 capitalization reflects mutual funds’ role in amplifying market participation.

3. The mutual fund ecosystem, governed by SEBI’s robust framework, enables transparency, accessibility, and investor protection.

This report critically evaluates the structural and strategic challenges that have impacted the Bombay Stock Exchange (BSE) over the past decade, emphasizing the exchange's pivotal role in India’s financial ecosystem. As Asia’s oldest stock exchange, BSE's sustained relevance is vital for maintaining market depth, investor confidence, and economic stability. The study outlines the need for revitalization through innovation, investor outreach, and regulatory adaptability.

A core recommendation is leveraging the liberalized Foreign Portfolio Investor (FPI) Regulations, 2014 to attract global capital by enhancing operational efficiency and market visibility. The report calls for establishing a dedicated Research and Development Unit to foster innovation, develop new market products, and improve BSE’s market positioning.

The analysis further advocates for global integration via mechanisms like the Global Trading Window (GTW) and deeper partnerships with international exchanges. It also emphasizes the urgency of rationalizing membership norms and transaction charges to create parity and competitiveness across trading platforms. Enhancing market education and financial training for participants is also seen as essential to broaden participation and deepen the market.

Key Observations and Findings:

1. Regulatory reforms (e.g., FPI norms) offer untapped potential for global investor engagement.

2. Global collaboration and product innovation are key to regaining competitive edge.

3. Market education and equitable operational frameworks can improve investor participation.

This report provides a detailed assessment of the systemic challenges and policy responses following the 2018 default by Infrastructure Leasing & Financial Services Limited (IL&FS), a watershed event that triggered a liquidity shock across India’s Non-Banking Financial Companies (NBFCs). The IL&FS crisis taken as a case-study severely impacted the market for Commercial Papers (CPs) and Non-Convertible Debentures (NCDs), leading to heightened risk aversion and elevated borrowing costs for NBFCs.

To restore confidence, the Reserve Bank of India (RBI) swiftly initiated liquidity-enhancing measures, including Open Market Operations (OMOs) and adjustments to the Liquidity Coverage Ratio (LCR) framework. In parallel, public sector entities like State Bank of India (SBI) stepped in by purchasing NBFC assets, offering crucial market support.

The report highlights the sector’s increasing dependence on short-term instruments like CPs, despite rising interest rate pressures. A comparative analysis of 137 NBFCs reveals aggressive balance sheet growth, largely due to their role in bridging the credit gap amid public sector bank constraints. However, this expansion exposed asset-liability mismatches, as long-term assets were often funded by short-term borrowings.

Key Observations and Findings:

1. RBI’s prompt interventions were critical in restoring market function.

2. NBFCs’ over-reliance on short-term funding underscores the need for better asset-liability management.

3. Regulatory gaps in risk oversight contributed to balance sheet imbalances in several NBFCs.

This report delves into the strategic behavior of market participants surrounding the Offer for Sale (OFS) mechanism, introduced by SEBI in 2012 to help listed companies—especially Central Public Sector Enterprises (CPSEs)—meet the minimum public shareholding requirement of 25%. It focuses on the trading patterns observed in the days leading up to and on the day of the OFS, analyzing trends in both the spot and derivatives segments of the market.

The study identifies a clear pattern of heightened market activity prior to OFS announcements, often influenced by expectations around floor price disclosures. This anticipatory behavior suggests that traders closely monitor regulatory announcements and time their actions to maximize advantage. In particular, the sequencing of the OFS notice and floor price announcement creates a window that can lead to speculative trading and potential market anomalies.

It further notes that several listed CPSEs remain below the required public shareholding threshold, indicating the likelihood of future OFS events. These developments underscore the importance of timely policy interventions and strategic regulatory oversight.

Key Observations and Findings:

1. Market participants exhibit anticipatory trading behavior based on expected OFS floor prices.

2. Gaps in announcement timelines may allow speculative positioning and affect fair price discovery.

3. A number of listed CPSEs remain non-compliant with public shareholding norms.

4. Strengthening surveillance and transparency is essential to uphold market integrity.

This report critically examines SEBI’s use of ex-parte interim orders—urgent directives issued without hearing the affected party—highlighting their legal foundation, execution, and implications over the past decade. Empowered through progressive amendments to the SEBI Act, especially post-1995, SEBI has leveraged its quasi-judicial authority to swiftly curb market malpractices and safeguard investor interests. While these powers are instrumental in pre-empting systemic risks, the report flags persistent delays in concluding investigations and issuing final orders, which often impose prolonged uncertainty and hardship on targeted entities.

Key Observations and Findings:

1. SEBI’s ex-parte powers are grounded in its legislative evolution and serve as critical tools for market intervention.

2. Delayed final adjudications following interim orders dilute the intended preventive impact and disrupt businesses.

This report delves into the transformative role of digital signatures and electronic Know Your Customer (e-KYC) processes in India’s financial landscape, positioning them as key enablers of a secure, efficient, and inclusive digital economy. It details the technological and regulatory evolution underpinning these tools—digital signatures, backed by Certifying Authorities and governed by the IT Act, and e-KYC, driven by Aadhaar-linked identity verification under the Prevention of Money Laundering Act (PMLA). The report underscores how e-KYC, supported by the Central KYC Records Registry (CERSAI), has streamlined customer onboarding, reduced fraud, and minimized compliance burdens. Institutional support from landmark policy bodies like the Watal Committee and Nachiket Mor Committee further amplifies the relevance of digital identity in driving financial inclusion.

Key Observations and Findings:

1. Digital signatures ensure secure, tamper-proof digital transactions, while e-KYC enhances verification speed and compliance efficiency.

2. Aadhaar integration and legislative backing through PMLA and CERSAI have accelerated the scale-up of e-KYC in India.

3. Policy endorsements from the Watal and Nachiket Mor Committees have cemented the centrality of digital identity in financial reforms.

4. Regulatory push from RBI and SEBI has catalyzed e-KYC adoption across banking, securities, and insurance sectors.

This report explores the viability and strategic value of introducing Bond Exchange Traded Funds (ETFs) in India, positioning them as a transformative tool to deepen and democratize the domestic bond market. Drawing on the successful precedent set by equity ETFs, particularly the CPSE ETF, the study examines SEBI’s proposal to extend the ETF framework to bonds. It explains the ETF creation-redemption mechanism, emphasizing the role of Authorized Participants (APs) in ensuring liquidity and price alignment with the underlying bond basket. By enabling real-time trading and transparent pricing on stock exchanges, Bond ETFs promise to simplify bond investing—especially for retail participants—while offering low-cost, diversified exposure to fixed-income instruments.

Key Observations and Findings:

1. Bond ETFs can bridge key structural inefficiencies in India’s bond market by improving liquidity and transparency.

2. The current bond market suffers from shallow trading volumes, skewed debt issuance, and poor price discovery.

3. Real-time ETF pricing offers a sharp contrast to India’s largely opaque and fragmented bond trading systems.

4. Challenges remain in constructing representative bond indices and ensuring adequate market participation.

This report presents a detailed examination of India’s insurance industry, focusing on critical dimensions such as policy surrenders, investment norms, regulatory evolution, and alignment with global best practices. Anchored in the Insurance Act, 1938 and regulations issued by IRDAI, the study explores how surrender values—both within and beyond lock-in periods—are governed, revealing wide variation based on policy terms and insurer practices. It further analyzes the investment regulatory framework through the lens of the Prescriptive Model and the Prudent Person Rule, observing that IRDAI’s guidelines increasingly converge with global frameworks like the EU’s Solvency II, particularly through the adoption of risk-based capital norms and enhanced risk governance.

A key focus is the IRDAI (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016, which mark a decisive shift toward a transparent, market-aligned commission regime by defining and rationalizing payouts to agents and intermediaries. The report also addresses the growing emphasis on product transparency through the segregation of insurance and investment components—mandated under accounting standards such as IND AS 104 & 107, IFRS 17, and aligned with Article 15 of Solvency II—ensuring improved policyholder protection.

Key Observations and Findings:

1. Surrender values are governed by the Insurance Act and vary significantly based on policy tenure and terms.

2. India’s investment regulations, rooted in a prescriptive approach, are transitioning toward risk-based, globally harmonized standards.

3. The 2016 IRDAI commission regulations promote fairness, clarity, and transparency in intermediary compensation.

4. Global convergence is evident in India’s shift to risk-based capital norms, product transparency, and robust internal risk management.

This report offers a comprehensive assessment of how government policy changes impact India’s Micro, Small, and Medium Enterprises (MSMEs), a sector central to employment, manufacturing, and regional development. Despite their critical role, MSMEs continue to grapple with structural challenges such as outdated technology, poor infrastructure, and limited financial access, which constrain their growth potential. A key focus of the report is the alarming rise in Non-Performing Assets (NPAs) within the sector, driven by weak business fundamentals and inadequate market linkages. It finds a clear link between rising NPAs and the volume of outstanding credit to sick units, signaling the need for stronger credit appraisal systems.

The report reviews RBI’s and other government-led revival frameworks, finding that while intent is strong, execution remains uneven. It stresses the need for more adaptive and effective rehabilitation mechanisms. It also highlights the urgency for MSMEs to modernize through technology adoption, digital integration, and FinTech partnerships, which could enhance productivity and financial viability.

Key Observations and Findings:

1. MSMEs face persistent challenges in finance, infrastructure, and technology adoption.

2. Rising NPAs reflect structural vulnerabilities and gaps in risk assessment and support systems.

3. Current policy measures show limited efficacy without robust implementation and regular updates.

4. Digitalization and FinTech collaborations offer transformative potential for MSME modernization.

This report presents a comprehensive analysis of the Securities Lending and Borrowing (SLB) mechanism, emphasizing its pivotal role in enhancing liquidity, enabling short-selling, and improving price discovery across global financial markets. In mature economies like the US, UK, and Japan, SLB systems are highly evolved, backed by advanced regulation, broad institutional participation, and seamless technological integration, making them central to market efficiency.

In contrast, India’s SLB market remains in an early stage of development. The report highlights key structural impediments—regulatory rigidity, low institutional engagement, and limited investor awareness—which contribute to subdued trading volumes and restricted availability of lendable securities. Although SEBI has made notable progress by creating a dedicated SLB framework and expanding eligibility norms, the ecosystem lacks the scale and fluidity seen in global peers.

Key Observations and Findings:

1. SLB is a vital market function that supports liquidity, short selling, and efficient pricing.

2. India’s SLB market suffers from low volumes, narrow participation, and limited security coverage.

3. Global counterparts benefit from flexible regulations, high institutional usage, and tech-driven platforms.

This report assesses the feasibility and potential impact of introducing a Mutual Fund Linked Retirement Plan (MFLRP) in India, framing it as a necessary innovation to address growing gaps in the country’s retirement ecosystem. It highlights the inadequacy of traditional support systems and government-sponsored schemes in securing post-retirement income for an increasingly urbanized and aging population. Emphasizing disciplined investment, the report positions MFLRP as a flexible, growth-oriented alternative that can enhance retirement readiness—especially among the unorganized sector.

The study draws on the World Bank’s five-pillar framework for pension systems:

Pillar 1: Non-contributory social pensions for poverty alleviation.

Pillar 2: Mandatory public pay-as-you-go pension schemes.

Pillar 3: Mandatory individual savings (defined contribution) schemes.

Pillar 4: Voluntary savings schemes (including employer-sponsored pensions).

Pillar 5: Informal support systems like family-based care.

The report critiques existing Indian schemes such as the Employees Pension Scheme, National Pension Scheme, and Atal Pension Yojana, citing limited reach, especially among informal workers. It argues that an MFLRP—modeled after successful systems like the 401(k) plan in the US—could bridge this gap by offering market-linked returns, better asset allocation (particularly in equities), and automatic lifecycle rebalancing to match risk appetite with age.

Key Observations and Findings:

1. India’s pension coverage is fragmented, with low uptake in voluntary and unorganized segments.

2. MFLRP can offer higher long-term returns through equity exposure and lifecycle-based portfolio rebalancing.

3. Financial literacy is critical to adoption, as retirement products remain largely push-driven in India.

4. SEBI’s recommendation of tax incentives could drive participation and deepen domestic capital markets.

The report provides an in-depth analysis of the current framework for addressing investor grievances in the Indian securities market. The report traces the transformation of the market from being poorly regulated to one of the best-regulated globally, thanks to the proactive and investor-centric approach of policy makers and SEBI. Despite this progress, the dynamic nature of market conditions necessitates continuous regulatory updates to maintain investor confidence and protect investments from various malpractices.
The report identifies several types of investor grievances, including unauthorized trading, non-receipt of documents, misappropriation of funds, misuse of demat/trading accounts, and corporate governance issues. It explores the linkages between the efficiency of grievance redressal mechanisms and retail investor participation, highlighting that a robust redressal system is crucial for sustaining retail investor confidence. The study indicates that delays in grievance resolution and inadequate corporate governance negatively impact investor participation.
A comprehensive review of the existing regulatory framework, including the Companies Act, 2013 and SEBI Act, 1992, is conducted in the report. It identifies several gaps and deficiencies in these regulations, emphasizing the need for continuous improvement and adoption of global best practices. The study underscores the importance of a robust and expeditious grievance redressal system to ensure investor protection and market integrity.
The research methodology involved data extraction from SEBI, BSE, NSE, MSEI, and other agencies, followed by analysis using various statistical tools. Additionally, a survey of investors was conducted to gauge their satisfaction levels with the current grievance redressal mechanisms. Key findings reveal that while there have been improvements, significant issues such as delays in resolution, high complaint rates against brokers, and inadequate corporate governance persist.
In conclusion, the report offers policy recommendations aimed at enhancing the Indian securities market’s robustness and making it a preferred investment destination globally. These recommendations include improving regulatory frameworks, increasing the efficiency of grievance redressal mechanisms, and adopting best practices from other well-regulated markets. The study emphasizes the need for better regulatory oversight, enhanced investor education, and more stringent enforcement of existing regulations to ensure a fair and transparent market environment.

The report examines retail investor participation in the Indian capital markets using data from NSDL and CDSL. It emphasizes the critical role of retail investors in democratizing markets, enhancing corporate governance, and providing market stability. Despite the growing Sensex, retail participation has declined drastically from 20 million in the 1990s to around 8 million in 2009, with a penetration rate of just 1.3% compared to higher rates in the US and China.
Challenges faced by retail investors include difficulties in opening demat accounts, issues of price manipulation, poor grievance redressal mechanisms, and lack of proper guidance. Although the process of opening demat accounts has been simplified, it remains a barrier to entry for many potential investors. The report also highlights investment behavior based on NSDL and CDSL data, revealing a predominant investment in equities, particularly CNX 100 stocks, and a trend towards short-term investments and intraday trading.
To address these issues, the report stresses the importance of enhancing financial literacy and investor education. It points out the low financial literacy rates in India and calls for tailored financial literacy programs delivered through innovative methods like digital platforms. Additionally, it recommends policy measures to increase retail participation, such as improving regulatory frameworks, simplifying account opening processes, promoting financial literacy, and introducing fiscal incentives.
In summary, the report highlights the decline in retail investor participation, identifies key barriers, and offers strategic recommendations to enhance retail investor engagement in India’s capital markets.