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Informist, Thursday, May 21, 2026

MUMBAI – Changes in household savings through securities markets impact gross savings and savings rate in the domestic economy, and lead to higher savings quantum than the national savings data reported by the Reserve Bank of India and the statistics ministry, the Securities and Exchange Board of India said in a research paper released Wednesday. The securities market regulator said its research using revised methodology which included primary and secondary market investments by households in equity, debt, and hybrid asset instruments, and also similar investments by non-profit institutions serving households such as charities, trusts, association of persons, and non-government organisations.

As per SEBI's computation using its methodology the household savings through securities market was INR 6.91 trillion for 2024-25 (Apr-Mar), INR 3.58 trillion for FY24, and INR 2.60 trillion for FY23. Had the earlier methodology used by RBI and statistics ministry been used, the household savings through securities market would compute to INR 5.43 trillion for FY25, INR 2.76 trillion for FY24, and INR 2.06 trillion for FY23, as per the SEBI research paper. SEBI's computation, therefore, estimated FY25 household savings higher by 1.48 trillion, or 27%, as compared to the computation using earlier methodology.

SEBI, which sourced data from depositories, stock exchanges, and Association of Mutual Funds in India, said its FY25 estimate of INR 6.91 trillion of household savings through securities market included primary market flows of INR 6.32 trillion and second market net inflow of INR 595 billion. The primary market flows comprised largely of mutual fund flows of INR 5.13 trillion, equity flows of INR 951 billion, and debt flows of INR 224 billion. The secondary market net inflow of INR 595 billion comprised of net inflow of INR 819 billion in debt securities, and INR 309 billion in mutual funds, including exchange traded funds, along with a net outflow of INR 548 billion in equities.

SEBI said with its revised methodology, the under-reporting of household savings "has been taken care of." Applying its estimates to GDP ratios, the SEBI paper said the household savings through securities market to GDP ratio would be 2.17% for FY25, 1.24% for FY24, and 0.99% for FY23. The methodology used by the RBI and the statistics ministry would give corresponding ratios of 1.71% for FY25, 0.95% for FY24, and 0.79% for FY23, SEBI said in the research paper.

SEBI said its computation using the actual granular data from primary sources gave "a realistic picture about the household savings channelised through the securities market." The market regulator said this ensured data quality and accuracy.  End

Reported by Rajesh Gajra

Edited by Akul Nishant Akhoury

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