India’s capital markets are witnessing a major digital transformation, with investing becoming more accessible than ever through smartphones, online platforms and app-based investing ecosystems, according to Sundararaman Ramamurthy, MD and CEO of BSE. Speaking at Groww’s India Investor Festival, Ramamurthy said digital technology has fundamentally changed how Indians participate in financial markets, helping bring millions of first-time retail investors into equities and mutual funds.

“When digital boom happened, market moved from the trading ring first to broker’s office, then to the customer’s laptop and now the customer’s pocket,” Ramamurthy said. “You have an app, you download it, do KYC and you start trading.”

He said the shift has played a key role in democratising access to investing by removing traditional barriers linked to geography, infrastructure and information availability.

Retail participation

Highlighting the scale of investor growth, Ramamurthy said India added nearly 3.5 crore new investors this year alone on BSE platforms.

“This year alone, 3.5 crore new investors have come in on BSE as unique clients,” he said.

The sharp rise reflects growing retail participation in equities, mutual funds and exchange-traded investment products, driven largely by digital onboarding and increasing financial awareness.

India’s broader capital markets ecosystem has also expanded rapidly in recent years, with rising mutual fund SIP inflows, strong IPO activity and increasing retail ownership of equities.

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Ramamurthy noted that the market infrastructure itself has evolved significantly over time.

“What used to be a restricted club with very few participants has now become a transparent and technology-driven market infrastructure,” he said.

Technology intervention

The BSE chief explained that Indian stock markets have undergone multiple structural changes over the decades, moving away from closed broker-led systems toward digital and highly transparent platforms.

According to him, technology has transformed several areas including:

• Trading access
• Information dissemination
• Clearing and settlement systems
• Risk management

Investor participation

He said earlier market access was limited and information asymmetry often favoured a small group of participants. Today, however, corporate disclosures, digital trading and faster settlements have created a more level playing field for investors.

Ramamurthy highlighted how settlement cycles have also improved dramatically.

“There was a time when settlement was almost ‘T plus anything’. Today it is T plus one,” he said.

Warning against market ‘noise’

While praising digital adoption, Ramamurthy also cautioned investors against blindly following rumours, social media trends and speculative market noise.

He warned that investors today are exposed to excessive information, including deepfakes, misleading videos and unverified investment tips circulating online.

“Are these good information or are they noise?” he asked investors at the event.

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He stressed that long-term wealth creation should be driven by disciplined investing and research rather than chasing shortcuts or speculative bets.

“If your path is clear and you are going after a well-researched thought process into investments, then you will not rush out because of noise,” Ramamurthy said.

The comments come at a time when India’s retail investing ecosystem is expanding rapidly, fuelled by mobile-first investing platforms, easier onboarding processes and rising participation from young investors across Tier-2 and Tier-3 cities.

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