The Securities Exchange Board of India (SEBI) in its annual report revealed that Indian companies have raised ₹9.8 lakh crore from capital markets during the fiscal year 2022-23 which was 4.6% higher than the previous year.

The market regulator said that the funds were raised for the financing needs of the companies through various instruments such as equity, debt, AIFs, REITs, and InvITs.

“The Indian capital markets facilitated resource mobilization amounting to ₹9.8 lakh crore in 2022-23, a rise of 4.6 percent over 2021-22. Funds were raised from the market by corporates/infrastructure entities for their financing needs using instruments such as equity (public, rights, preferential, QIP), debt (public and private placement), Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).,” said SEBI annual report.

The market regulator said that a significant chunk of these funds were raised through equity and debt instruments which accounted for ₹9.2 crore of capital formation. The AIF has grown as one of the rapidly growing segments of the investment landscape with significant growth in terms of commitments raised, funds raised, and investments made since 2018-19, the report said.

It said in the span of the last 5 years, the asset management ecosystem of India has witnessed a significant transition, and the assets under management (AUM) of the mutual fund (MF) industry grew at a rapid pace.

“As on March 31, 2023, the AUM of the MF industry stood at ₹39.4 lakh crore and the number of mutual fund accounts/folios was 14.57 crore, of which the unique number of folios was 3.77 crore. Encouraging investment flows through SIPs and rising investments from B30 cities contributed significantly to this growing AUM. Expansion of asset base during the year was also driven partly by a steady rise in passive investing, with doubling of net inflows to index funds,” the SEBI report said.

The SEBI said that the secondary market of the country was impacted by a slew of geo-political and challenging macroeconomic conditions that unfolded during the year. SEBI said that during the first three quarters, the equity markets outshone its global peers and it was the last quarter in which the performance of equity markets moderated.

“The fiscal was also marked by intermittent volatility, with the Nifty 50 registering its all-time high of 18,812 and intra-year low of 15,293. The Sensex too experienced a wide range of movement between 50,921 and 63,583 during the year,” SEBI mentions in its annual report.