Sebi Says 2,000 More Companies Could Enter Indian Stock Market in Next Two Years

Sebi chairman Tuhin Kanta Pandey expects 2,000 more companies to access Indian capital markets over two years, supported by strong IPO activity and improved corporate governance.

Sebi Expects 2,000 More Companies to Enter Indian Capital Markets Over Next Two Years

India could witness around 2,000 additional companies entering the capital markets over the next two years, according to Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey.

Speaking on Saturday, Pandey said the strong fundraising activity through public issues was encouraging more businesses to consider equity financing. He highlighted the potential of several mid-sized companies operating across different regions and industrial clusters to become publicly listed.

However, he noted that many of these businesses need guidance to improve their financial reporting systems and corporate governance practices before entering the stock market.

Indian IPO Market Records Strong Fundraising Activity

India's primary market has witnessed significant fundraising activity during the current financial year. Between April 1 and September 30, 2026, a total of 189 companies listed on the main-board and SME platforms, raising approximately ₹98,038 crore.

During the corresponding period last year, 186 companies raised ₹71,085 crore through their listings. The momentum continued beyond September, with the Jio Platforms IPO raising a record ₹30,213 crore.

When preferential share issues and qualified institutional placements (QIPs) are included, 914 companies have accessed the capital market so far this financial year, mobilising a combined ₹3.15 lakh crore.

India currently has approximately 5,300 companies listed on the Bombay Stock Exchange (BSE).

Sebi Wants More Mid-Sized Businesses to Go Public

Pandey believes that thousands of unlisted companies across India have the potential to raise funds through the stock market.

He said several promising businesses operate in regional industrial clusters but have not yet developed the confidence or preparedness required for public listings.

To address this gap, Sebi has encouraged industry organisations such as the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (Ficci) to support selected business clusters.

Focus on Financial Reporting and Corporate Governance

The proposed support would help businesses strengthen their internal systems before entering the capital market.

Key areas of preparation include:

• Improving quarterly accounting and financial reporting practices.

• Establishing effective corporate governance frameworks.

• Strengthening transparency and accountability.

• Preparing businesses to meet public-market requirements.

According to Pandey, such assistance could help capable mid-sized companies become more confident about raising funds through public issues.

Bengal's Investor Base Expands to Over 90 Lakh

Pandey also highlighted the growth of the securities market in West Bengal. The state's investor population has increased substantially, rising from approximately 12 lakh in FY15 to more than 90 lakh.

Nearly 36% of these investors are below the age of 30, indicating growing participation among younger individuals. West Bengal also has 379 companies with registered offices in the state listed on stock exchanges.

SME IPOs Raise More Than ₹1,400 Crore

The state's small and medium-sized enterprises have also started using the capital market to raise funds. More than 40 SMEs from West Bengal have accessed the market through SME initial public offerings (IPOs), collectively mobilising over ₹1,400 crore.

These figures reflect the expanding participation of both businesses and individual investors in the state's securities market.

Sebi Plans Capacity-Building Network for Independent Directors

Apart from encouraging more companies to list, Sebi is preparing a broader consultation on developing a capacity-building network for independent directors.

The proposed initiative would connect professional institutions, academic organisations, industry associations and chambers of commerce.

Its objective would be to improve the knowledge, capabilities and effectiveness of independent directors serving on corporate boards.

Independent Directors Must Strengthen Board Oversight

Pandey said independent directors should take a more active role in protecting shareholder interests, particularly those of minority investors.

Their responsibilities should go beyond meeting regulatory requirements and include meaningful supervision of corporate decision-making.

He also highlighted emerging areas that require greater attention from board members, including:

• Cybersecurity and digital risks.

• Artificial intelligence and its business impact.

• Sustainability-related responsibilities.

• Human resource transformation.

The proposed network is expected to support better board-level oversight by improving directors' understanding of these evolving business challenges.

Outlook for India's Capital Markets

Sebi's expectation of 2,000 additional company listings reflects the potential for further expansion of India's capital markets. Strong IPO fundraising, wider investor participation and support for smaller businesses could help more companies access equity financing.

At the same time, improving financial disclosures and corporate governance will remain essential to ensuring that new listings contribute to a transparent and trustworthy investment environment.