Sebi chairman Terrhin Kanta Pandey during the ‘Infrastructure Conclave 2025’, in Mumbai | Photocredit: PTI/SHAHANK Parade
Capital markets will play a crucial role in the financing of the expansion of the infrastructure of India, while the country pushes in the direction of its growth bands, Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey said on Thursday.
Speaking at the Infrastructure Conclave 2025, Pandey emphasized that infrastructure is not a gamble in the short term and allow the long -term capital markets.
Pandey emphasized four important strengths to support his claims for capital markets: “First, they bring long -term patient capital. Infrastructure is not short -term storage. Capital markets allow savings from pension funds, insurance companies, sovereine power funds and long -term investors to be cure. Pandey said that capital markets help in diversifying financing sources.
“Secondly, relying on banks or government budgets exposes us to concentration risk. Markets, on the other hand, offer a palette of instruments, corporate bonds, infrastructure Investment Trust (Invit), Reit’s, municipal bonds that distribute risks over several participants,” he noticed.
“Thirdly, they offer a model for sharing risks. For example, Investing Developers enable developers to earn money with operational assets, while investors gain access to stable yield -generating infrastructure. And fourth, capital markets Maintaining discipline, transparency and administration by disclosure standards,” added Pandey. Together, these functions make capital markets not only financiers, but also guardians of quality and credibility in infrastructure projects.
The SEBI chair also pointed out the growing use of instruments such as IPOs, law problems and private placements by infrastructure companies, which together represent almost one fifth of the total market capitalization of listed companies. In the past decade, infrastructure indices have achieved an annual return of 12-14 percent, which demonstrates the stable value of the investor sector.
Real Estate Investment Trusts (Reit’s) have also emerged as important roads. Pandey mentioned the National Highways Infrastructure Trust as an example in which operational road assets were transferred to an invitation, freeing capital for new projects while investors offer income -generating assets.
At the moment, five Reit’s and 23 invitations have registered with Sebi £ 1.5 trillion mobilized, with assets managed from £ 8.7 trillion from FY25.
Alternative investment funds (AIFs) make a different important contribution and grow five times in five years, from £ 1.1 Lakh Crore in March 2019 to £ 5.7 Lakh crore in June 2025. “Infrastructure funds under category 1 AIFs have already applied more than £ 7,500 crore on the ground,” Pandey, “” Pandey, “Pandey.
The SEBI chef also underlined the potential of municipal bonds for the financing of urban infrastructure. Since 2017, local bodies in cities such as Chennai, Varanasi, Agra and Ahmedabad have collected £ 3,134 crore to 21 bonds. He added that green bonds, with 24 issues that have been mobilizing more than £ 7,500 crore since 2017, are increasingly critical of climate -friendly projects in renewable energy and clean transport.
“Infrastructure is more than roads, ports, airports, dams, telecommunications or power plants. It is the backbone of economic progress. It connects producers with markets, people with opportunities and India with his striving to become an economy of $ 5 trillion,” he said. With reference to a World Bank study, Pandey noted that increased infrastructure investments immediately increases GDP, a trend that is visible in the motorways, subways, airports and digital connectivity of India.
Published on September 18, 2025
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