Highlighting the increasing importance of municipal bonds as a key source of financing for urban infrastructure and development projects across the country, SEBI Chairman Tuhin Kanta Pandey noted that across India 22 Urban Local Bodies (ULBs) have collectively raised more than Rs 4,500 crore through municipal bonds till FY26.

Speaking at the Association of Mutual Funds Program in Bhubaneshwar, Odisha, Pandey said the securities market serves as an efficient tool for directing savings into investments alongside banks, government support and internal accruals.

He highlighted that the capital market has diversified financing avenues through instruments such as equity, debt, REITs, InvITs and municipal bonds.

Referring to states such as Uttar Pradesh, Maharashtra and Madhya Pradesh, which have successfully leveraged municipal bonds for city-level infrastructure and urban development, Pandey said Odisha could also position municipal bonds as a key pillar of its development financing strategy.

“With wider participation, municipal bonds can evolve into a key pillar of funding for urban infrastructure in Odisha as well. So as an investor, when you invest, you are not just earning returns. You are participating in the growth of your city when you are investing in municipal bonds, state and the country,” Pandey said.

He further noted that mutual funds also indirectly contribute to infrastructure financing through investments in debt instruments, including corporate and municipal bonds.

The SEBI Chairman said that while the domestic municipal bond market remains nascent, 22 urban local bodies across the country had collectively raised more than Rs 4,500 crore through 31 issuances by the end of FY26.Highlighting the broader growth of the domestic securities market, Pandey said total market capitalization surged from Rs 95 lakh crore in FY16 to around Rs 463 lakh crore in April 2026. He added that the number of unique retail investors increased to 145 million from 38 million in FY19.

According to Pandey, the primary market recorded 366 initial public offerings during the last financial year, raising Rs 1.9 lakh crore and ranking first globally in terms of number of IPOs. Total equity and debt market mobilization stood at Rs 13.6 lakh crore despite geopolitical tensions and global conflicts.

He also said mutual fund assets under management grew from Rs 12 lakh crore in FY16 to nearly Rs 82 lakh crore by the end of April 2026, while monthly SIP inflows crossed Rs 31,000 crore in April 2026 compared to nearly Rs 3,000 crore earlier.

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However, citing the SEBI Investor Survey 2025, Pandey said that although 63 per cent of households were aware of market-linked products, only 9.5 per cent invested in them, with urban participation at 15 per cent and rural participation at 6 per cent.

“A securities market is nothing but a bridge between savings and investments. On one side we have individuals like all of us who save money. On the other side we have businesses who need capital to grow. The market connects the two,” Pandey said.

(ANI)