Securities and Exchange Board of India expects 2,000 entrants

Securities and Exchange Board of India expects about 2,000 more companies to enter India’s capital markets over the next two years, supported by a broad fundraising cycle. The regulator said 914 companies had already tapped the market so far this fiscal, raising ₹3.15 lakh crore through public issues, preferential issues and qualified institutional placements.

Why does Sebi expect 2,000 companies to enter capital markets?

Sebi expects a larger pool of companies to approach public markets because India has many unlisted businesses, including potentially strong firms across regional and industrial clusters. Chairman Tuhin Kanta Pandey said the country could have more than 600,000 companies, although many are likely to be small.

The projection is not limited to a single type of issuer or industry. Pandey referred to traditional businesses as well as newer companies that may be prepared to raise capital publicly. The stated objective is to bring forward companies with sound corporate standards while increasing the range of securities available to investors.

How strong has capital-market fundraising been this fiscal?

Capital-market fundraising has been substantial, with 914 companies raising ₹3.15 lakh crore so far this fiscal after including preferential issues and qualified institutional placements. That figure illustrates activity beyond initial public offerings, covering multiple routes through which companies can raise equity capital.

Between April and September 30, 2026, 189 companies listed on the main-board and SME platforms and raised ₹98,038 crore. The listing total shows that both larger companies and smaller enterprises have participated in the public market during the period.

What must companies improve before listing?

Companies need stronger financial reporting and corporate-governance practices before they can gain confidence to list, according to Sebi. Pandey said many mid-sized companies in different regions and industrial clusters have the potential to access the market but require support in these areas.

The regulator has specifically pointed to quarterly accounting practices and appropriate governance frameworks. These steps matter because a public listing requires businesses to meet standards that give investors clearer and more regular information about the company.

How will industry bodies help companies prepare for listings?

Sebi has asked industry bodies including CII and Ficci to adopt clusters and identify businesses that could prepare for public listings. The approach is intended to reach companies in areas where viable enterprises exist but have not yet built enough confidence to approach the capital market.

Industry associations can help such companies strengthen their readiness for public-market participation, particularly in reporting and governance. Pandey’s comments place the emphasis on preparing suitable firms rather than suggesting that every unlisted business should list.

How does the outlook compare with the IPO pipeline?

The wider market discussion points to a large potential issuance pipeline, although estimates differ depending on what is counted. One forecast cited around 1,000 IPOs over the next two years, while Sebi’s 2,000-company expectation refers more broadly to companies entering the capital market.

Other reported pipeline data indicated that more than 200 companies were lined up to raise public-market funds, with over 150 already holding Sebi approval. Separately, as of December 19, approvals remained valid for around 95 companies seeking nearly ₹1.26 lakh crore through IPOs, while about 103 had filed documents seeking roughly ₹1.39 lakh crore.

Conclusion

Sebi’s outlook reflects the depth of India’s unlisted corporate base and the recent scale of equity fundraising. The 2,000-company expectation depends not only on issuer interest but also on companies developing the reporting discipline and governance standards needed for public-market participation.

The next development to watch is whether industry bodies can identify and prepare companies across regional clusters, while the existing IPO pipeline moves through regulatory approval and market conditions. Main-board and SME listings, along with preferential issues and QIPs, will indicate how broadly companies continue to use the capital market.