Sebi chairman, Ajay Tyagi, Friday
said despite volatility in markets, the domestic capital
market has performed better than its peers.
volatile in the current year, and is likely to remain so due
uncertain oil prices, move towards more formal monetary
policies by central banks across jurisdictions and US-China
These factors have also affected the Indian markets. "In
terms of volatility, indices return, Indian markets have not
performed much worse. In fact, they have been better off when
you compare with either major developed economies or emerging
markets," Tyagi said in a speech at CII financial
Citing some data, he said in April-November returns
on Nifty have moved up by about 6.5 per cent. Although
trailing the returns on Dow Jones (8 per cent), it is higher
than stock indices of other countries such as UK (-1 per
cent), China (-18 per cent), Brazil (5.7 per cent) and Japan
(4.5 per cent).
The volatility in Indian equity market at 12 per cent,
in the period, is among the lowest compared to major developed
and emerging markets like UK (12 per cent), US (16 per cent),
China (19 per cent), Japan (17 per cent), South Korea (14 per
cent), Hong Kong (19 per cent) and Brazil (21 per cent).
During April-November, the rupee saw a depreciation of
around 7 per cent against the US dollar, which is around the
same level as the depreciation in the Japanese Yen (-7.3 per
cent) but better than many other jurisdictions like China
(-10.81 per cent), UK (-10.10 per cent), Europe (-8.73 per
cent) and Brazil (-16.85 per cent), he said.
He said on the domestic front, NBFCs and HFCs have
been facing tight liquidity since September, though it has
improved on account of RBI steps to provide
Talking to reporters later, Tyagi said Sebi is also in
consultation with the mutual funds industry for changes post
the liquidity crisis.
policy issues we are examining, in consultation with the
He also said the capital market has aided the growth
of the country's economy by providing much needed funds to the
He said a record amount of Rs 8.8 trillion was raised
from the domestic capital market during 2017-18 (through
equity and debt) against the Rs 7.7 trillion raised
during 2016-17. In the current fiscal Rs 4.85 trillion has
already been raised.
Tyagi said the development of other alternative
sources of funding like AIFs, REITs, InvITs and municipal
bonds have also been gradually gaining prominence over time.
He said there has been a spurt in AIF activities in
the past two-three years, with cumulative commitment going up
by 117 per cent from March 2016 to March 2017 and further 96
per cent from March 2017 to March 2018.
For the same periods, the total funds raised have gone
up by 80-108 per cent, respectively, he added.
He said seven InvITs and two REITs have so far been
registered with Sebi, with three of the registered InvITs have
already issued and listed more than Rs 10,000 crore of units.
Recently, one REIT has filed documents with Sebi to
make an offer of more than Rs 5,000 crore of units.
Tyagi said the regulator is in touch with market
participants and if any further changes are warranted relating
to REITs, InvITs, or municipal bonds, appropriate action would
"A vibrant capital market has to play an increasingly
pivotal role to facilitate fund mobilisation for sustaining
India's projected economic growth momentum. This role becomes
even more important, given the stress on the banking sector,"
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)