MUMBAI: A Call for Market Evolution

SBI chairman C S Setty has emphasized the importance of expanding the pool of listed companies and promoting spot transactions for better price discovery. Over-reliance on derivatives, he noted, hampers market depth and liquidity. Setty also highlighted the need to transition from private placements to open offers and leverage technology to reduce costs.

Building Investor Trust through Transparency

Delivering a keynote address at a National Institute of Securities Management event, Setty proposed the establishment of a dedicated market infrastructure institution. This institution would track the utilization of funds raised by businesses through equity and debt markets, fostering transparency and building investor trust.

Scaling Up for Future Growth

Setty pointed out that Indian capital markets need to mobilize Rs 643 lakh crore in equity by 2036 to support economic growth. This involves raising the investment rate to 35% of GDP and increasing domestic savings to 33.5% of GDP. He also stressed the importance of addressing credit information asymmetry for MSMEs, which are crucial to India's economy.

Climate Finance: A Priority

Highlighting the need for climate finance, Setty estimated that India requires $10.1 trillion to achieve its net-zero goals by 2070. He underscored the importance of institutional innovation to efficiently mobilize funds, with annual green financing requirements potentially reaching 2.5% of GDP.