Domestic investors bring fresh breeze, will push India towards 3rd largest capital market: DIPAM Secy

Speaking with CNBC-TV18 Managing Editor Shereen Bhan at Network18 Reforms Reloaded in New Delhi, he highlighted a structural change marked by greater democratization and the growing role of small investors

DIPAM Secretary Arunish Chawla said on Monday that domestic investors are bringing a “fresh breeze” to India’s capital markets.

Speaking with CNBC-TV18 Managing Editor Shereen Bhan at Network18 Reforms Reloaded in New Delhi, he highlighted a structural change marked by greater democratisation and the growing role of small investors.

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“We will come back with more valuable sharings with domestic investors,” he said.

“In spite of global headwinds, very soon our capital markets will be the third largest in the world,” Chawla added.

He noted that public sector companies account for 14% of market capitalisation but contribute 25% of dividends to small shareholders. The aim, he said, is to exceed ₹1,20,000 crore in dividend payouts this year, while staying on course to meet the asset monetisation target in FY26.

The remarks come amid domestic institutional investors playing a key role. Last Friday, FIIs recorded inflows of Rs 129.6 crore, while DIIs were net buyers at Rs 1,556 crore. In 2025 so far, FIIs have sold shares worth Rs 1,41,417 crore, with August sell-offs totalling Rs 10,782 crore.