The National Institute of Securities Markets (NISM) is a public trust established in 2006 by the Securities and Exchange Board of India (SEBI), the regulator of the securities markets in India. The institute carries out a wide range of capacity building activities at various levels aimed at enhancing the quality standards in securities markets.
Indian households have always had a deep-rooted affinity for gold. Indians purchase gold not only for cultural and emotional reasons, but also as a long-term investment. Now, with gold prices scaling the Rs. 100,000 mark per 10 grams, this has turned out to be one of the best investments that Indian households have made. Many Indian households buy a small amount of gold every year, especially on Akshaya Tritiya. Let us examine how they would have fared if they had consistently bought 10 grams of gold each year, on 1 April of the year, from 2005 to 2024, and sold the entire holding on 1 April, 2025. Would they have been better off compared to investing the same amount, annually, in the NIFTY 50?
On 1 April, 2005 gold was at Rs.6180 per 10 grams. By 2012, gold prices had surged past Rs. 28,000 per 10 grams. Gold continued its relentless upward move, crossing Rs. 50,000 per 10 grams in 2022, Rs. 60,000 per 10 grams in 2023, Rs. 70,000 per 10 grams in 2024 and Rs. 90,000 per 10 grams in 2025. Summing up 20 years of investments in gold, the total outflow for the purchase of 10 grams of gold every year, amounting to a total of 200 grams, would have been Rs. 6,00,000. Selling the entire 200 grams at the 1 April, 2025 price of Rs.92,830 per 10 grams would have yielded Rs.18.57 lakhs – an extended internal rate of return (XIRR) of 13.19%.
In contrast, let’s suppose that the household, instead of buying gold, invested the same amount each year into a NIFTY 50 index fund. The index stood at a level of 2067 on 1st April, 2005 and steadily rose to a level of 22,462 by 1 April, 2024. The annual contributions of the household would have helped them accumulate about 70.72 units of the index fund over the 20 years. If the household sold these units on 1 April, 2025, at an index level of 23,165, it would have yielded them Rs.16.38 lakhs – an XIRR of 11.90%.
Very clearly, the recent spurt in the price of gold has benefited Indian households significantly, as Indian households have traditionally been investors in gold rather than being equity investors. The return from gold has, over the last 20-year period, outpaced the returns from equity. While past performance is not an indicator of future returns, gold as an asset class has helped Indian households create wealth for themselves while at the same time offering them psychological comfort and downside protection. In uncertain times, gold most definitely retains its place as a stabilizing asset in a diversified portfolio.
India’s BFSI Sector Is Booming The Indian Banking, Financial Services, and Insurance (BFSI) sector is witnessing unprecedented growth, creating massive demand for skilled professionals:
In FY24, private BFSI firms hired over 211,000 professionals, marking the highest hiring in a decade.
Employment in banking, NBFCs, insurance, and fintech is projected to grow by 5%–7% in H1 FY25.
Demand for BFSI talent in Tier 2 and Tier 3 cities has increased by 30%, driven by financial penetration and digitization.
Government and academia are pushing financial education initiatives to bridge the skills gap.
What is NISM? The National Institute of Securities Markets (NISM) was set up by SEBI to focus on both financial education and developing markets. Nestled on an attractive 72-acre campus outside Mumbai, NISM offers top-class buildings, enthusiastic staff, and unbeatable business connections.
What is PGDM (Securities Markets)? The Post Graduate Diploma in Management (Securities Markets) is a two-year, AICTE-approved program that blends theoretical knowledge with real-world experience in:
Financial Analytics
Securities Market Laws
FinTech & ESG
Derivatives & Risk Management
Mutual Funds, Equity & Fixed Income
It’s more than a degree—it’s a gateway to an impactful career in securities markets.
How NISM’s PGDM (SM) Aligns with This Surge The rapid growth in the industry makes NISM’s PGDM (Securities Markets), established by SEBI, a great opportunity to begin your career in the BFSI sector.
Industry Demand
NISM PGDM (SM) Offering
Soaring need for professionals in investment, risk, and compliance
Industry-focused curriculum with dedicated courses on Risk Management, Compliance, and Law
BFSI is concentrated on hiring digital-ready talents.
Access to SMART Lab, Bloomberg Terminals, and case-based simulations
Need for multi-skilled analysts
Integrated learning in Finance, Economics, Quant, and Data Analytics
Priority on certification-ready professionals
Six embedded NISM certifications, making you industry-ready on Day 1
Recruiters looking for practically trained graduates
Real-time projects, internships, guest lectures, and leadership series with market experts
Be Future-Ready with NISM: With BFSI transformation and the surge in securities markets, NISM’s PGDM (SM) puts you at the forefront of a high-demand, high-impact career.
Programme Objectives & Learning Takeaways – At a Glance
Programme Objectives
Key Learning Takeaways
To develop complete professionals for the securities markets ecosystem
Comprehensive understanding of equity, debt, currency & commodity markets
To provide a robust grounding in finance, economics, law, compliance, and FinTech
Insights from Finance, Accounting, Economics, Law, and Quantitative Methods
To impart industry-relevant and contemporary knowledge through expert faculty
Hands-on exposure via case-based pedagogy, Harvard cases, and SMART Lab
To foster analytical, research, and problem-solving abilities
Strong emphasis on analytical skills, critical thinking, and decision-making
To blend academic rigour with real-world market exposure
Exposure to live trading simulations, field visits, and Bloomberg terminals
To enable students to pursue professional certifications and lifelong learning
Earn six embedded NISM certifications during the course
To build leaders who can adapt to evolving global financial landscapes
Insights into ESG investing, FinTech innovation, and global financial practices
Why Choose NISM?
Capacity Building Initiative of SEBI – backed by India’s capital markets regulator
World-class campus hostels, sports, medical & wellness facilities
Industry-oriented curriculum with global standards
SMART Lab, Bloomberg, Harvard case studies – real learning in real time
Top-class faculty industry veterans and academic leaders
Vibrant alumni network across global finance institutions
Career Pathways After PGDM (SM) & Past Recruiters
Career Segment
Potential Roles
Select Past Recruiters
Equity & Debt Markets
Equity Analyst, Fixed Income Analyst, Portfolio Manager
Your Gateway to Financial Leadership: Careers, Entrepreneurship & Growth with a PGDM in Securities Markets
In a world increasingly driven by financial intelligence, the demand for skilled professionals in securities markets has never been higher. The PGDM (Securities Markets) offered by the National Institute of Securities Markets (NISM) is not just a qualification it is your gateway to a rewarding, fast-paced, and impactful career. PGDM (SM) is an AICTE approved two-year Post-Graduate Diploma Programme in Management, where the students get exposure to varied subjects and verticals of securities markets including Economics, Financial Statement Analysis, Corporate Finance, Portfolio Management, Equity Valuation, Fixed Income Securities, and Derivatives & Risk Management, Investment Banking, Mutual Funds, and Wealth Management, benchmarked with the best and contemporary texts. Post Graduate Diploma in Management (Securities Markets) – PGDM (SM)
Why Choose PGDM (SM)?
NISM, established by SEBI, offers an AICTE-approved, two-year full-time PGDM (SM) that integrates finance, economics, analytics, law, equity markets, portfolio management, investment banking and FinTech with a deep specialization in securities markets. The program is designed not just to prepare you for jobs—but to transform you into a future-ready professional with leadership capabilities.
Career Opportunities After PGDM (SM):
Investment Banker: Work with top firms advising on mergers, acquisitions, and fundraising.
Financial Planner & Wealth Manager: Help individuals and businesses achieve financial goals.
With recruiters ranging from top banks to asset management companies and brokerages, the program opens doors across the securities ecosystem.
Entrepreneurial Edge: Build Your Own Financial Venture
The PGDM (SM) doesn’t just train job seekers—it nurtures financial entrepreneurs. With deep dives into investment banking, fintech applications, compliance, and alternative investments, graduates can build ventures in:
FinTech innovations
Data Science & Quantitative Finance
Investment advisory strategies
Alternate Investment Funds & ESG investing
Legal and regulatory frameworks for launching ventures
Entrepreneurial Pathways:
FinTech Founder: Launch apps in algorithmic trading, robo-advisory, or personal finance management.
Independent Financial Advisor: Set up a consultancy for retail or institutional clients.
Securities Market Educator: Use your expertise to create educational platforms or YouTube channels on finance.
Analytics & Research Firm Owner: Provide outsourced services in equity research or credit analysis.
Paired with leadership lectures, startup-focused workshops, and a strong alumni network, the program helps incubate your ideas into reality. The program also includes embedded NISM certifications that allow graduates to legally operate in India’s regulated advisory ecosystem—making it easier to set up shop as an independent consultant or RIA.
Growth Outlook: Why This Field is Built for the Future
The global financial landscape is evolving—and fast. With the rise of AI, ESG investing, and cross-border capital flows, there’s an urgent need for professionals who not only understand the market but can also navigate and lead change. With retail investor participation at an all-time high, expanding mutual fund AUM, and rapid digitization, the country needs more experts who can advise, manage, and innovate.
Why the Growth Potential is Massive:
India’s capital market is expanding rapidly with retail participation at record highs and increased digitization.
Global integration means Indian professionals are now in demand across Asia, the Middle East, and beyond.
Emerging domains like compliance, green finance, and impact investing are redefining the financial playbook.
Growth Trajectories:
Climb the corporate ladder in global investment firms
Pursue international certifications like CFA, FRM, or CAIA alongside PGDM
Transition into regulatory, policy, or consultancy roles
Move into academia or research with the strong analytical foundation of the program
With its integrated certifications, hands-on SMART lab training, and international benchmarking, the PGDM (SM) from NISM isn’t just preparing you for today—it’s preparing you for the next decade of finance.
The Indian Securities Market has evolved significantly, transforming from informal trading practices into a sophisticated, regulated ecosystem. The Securities Contracts (Regulation) Act of 1956 was introduced to regulate stock exchanges and securities transactions, aiming to prevent undesirable practices. Despite these measures, challenges such as lack of transparency and investor protection persisted. The economic liberalization marked a turning point. The Securities and Exchange Board of India (SEBI) was established in 1988 and granted statutory powers in 1992 under the SEBI Act. SEBI’s mandate includes safeguarding investor interests, promoting fair practices, and regulating the securities market.
As the securities market continues to evolve, the demand for specialized legal professionals has grown, particularly in key areas such as:
• Regulatory Compliance – Companies, Market Infrastructure Institutions and market intermediaries must navigate complex regulations, requiring legal expertise to ensure adherence to SEBI guidelines and other statutory requirements.
• Alternative Dispute Resolution – With the rise in market participants, securities-related disputes have become more common, necessitating legal intervention for resolution.
• Corporate Governance – Legal experts advise on governance practices, ensuring transparency and accountability in listed companies.
• Investor Protection – Robust legal frameworks are critical for safeguarding investor interests, particularly in cases of fraud or market manipulation. This evolution has shaped the legal profession, creating a growing demand for expertise in securities law. The LL.M. (Investment and Securities Laws) program is a one-year specialized postgraduate course jointly offered by the National Institute of Securities Markets (NISM) and Maharashtra National Law University (MNLU), Mumbai. Designed to equip legal professionals and law graduates with expertise in corporate law, securities regulation, and financial market operations, the program is a full-time residential course structured into three trimesters.
Launched in 2020, the program has seen its alumni successfully placed across the legal fraternity. After a brief hiatus, we are excited to relaunch the LL.M. in Investment and Securities Law, offering legal professionals a gateway to promising careers in securities markets. This remains one of the country’s leading LL.M. program, tailored to the dynamic legal landscape of India’s financial markets.
PROGRAM OVERVIEW
This program brings together academic excellence and regulatory expertise. The curriculum integrates law, finance and compliance, equipping graduates for careers in securities regulation, financial markets, legal practice, compliance, and academia.
Key Program Features:
• Core Subjects – Securities Law, Investment Law, Banking and Insurance Laws, Insolvency and Bankruptcy law, Corporate Governance, Compliance & Enforcement. • Practical Orientation – Case studies, legal drafting, regulatory simulations, and a research-intensive dissertation. • Expert Faculty –Regular Faculties of NISM and MNLU, Mumbai, Industry professionals, legal experts, and market regulators (including SEBI). • State-of-the-Art Campus – The program is conducted at NISM’s Patalganga campus, featuring modern classrooms, a SMART Lab for hands-on training, and residential facilities. Located an hour’s drive from Navi Mumbai, the campus offers an ideal environment for focused academic pursuits. Career Pathways for LL.M. Graduates Graduates of this program are well-positioned for roles in: • Securities Market Infrastructure Institutions & Intermediaries • Banking & Financial Institutions • Corporate Legal Advisory • Regulatory Bodies (SEBI, RBI, CCI, PFRDA) • Law Firms Specializing in Securities Law • Academia & Research
NISM’s strong industry connections enhance placement opportunities for students.
Growth potential for Legal Field
This intensive one-year program covers critical areas such as the Securities Contracts (Regulation) Act, SEBI Act, Depositories Act, and over 40 SEBI regulations. It also includes corporate law, derivatives, foreign investments, competition law, banking & insurance, and insolvency law.
The curriculum prepares legal experts to navigate the complexities of India’s financial markets, with a practical orientation that includes insights from regulators, legal professionals, and industry experts. The LL.M. program provides a competitive edge, combining deep legal expertise with an understanding of securities markets, ensuring that graduates remain at the forefront of legal, regulatory, and technological advancements in financial services.
A Vibrant Alumni Network
With a growing and accomplished alumni base, graduates of the LL.M. program have secured prestigious roles in top financial institutions, regulatory bodies, law firms, banks, and market intermediaries. Some actively practice in courts, while others manage compliance roles in organizations, with a few pursuing careers in teaching and research.
This vibrant alumni network plays a crucial role in mentoring new students, providing guidance on career pathways, industry expectations, and professional networking opportunities.
India’s FinTech sector is among the fastest-growing in the world, with a market value crossing billions and expanding at an unprecedented pace. Technologies like AI, blockchain, data analytics, and mobile-first platforms are redefining how financial services are delivered and consumed. In this context, FinTech education is becoming an essential differentiator for professionals and students alike.
The Indian securities market, regulated by the Securities and Exchange Board of India (SEBI), is at the forefront of this transformation. In recent years, digital innovation has significantly increased retail participation, especially through app-based investment platforms that simplify access to stock markets and financial instruments. These platforms have empowered a new generation of investors from across the country, contributing to a more inclusive and dynamic market. As this tech-driven ecosystem continues to grow, there is rising demand for professionals who can combine financial expertise with technological fluency. FinTech certification programs are emerging as a valuable response to this demand. They equip learners with critical skills in areas such as algorithmic trading, robo-advisory systems, blockchain applications, RegTech, digital compliance, and cybersecurity.
A well-structured FinTech program, especially one contextualized to Indian markets and regulations, provides not just theoretical insights but also practical exposure. Participants learn about SEBI’s evolving regulatory frameworks, digital KYC and AML procedures, emerging financial products, and the backend architecture of modern financial systems. Hands-on training using industry tools, real-world case studies, and capstone projects ensure that learning remains application-focused and relevant. For entrepreneurs, such education offers clarity on product design, market infrastructure, and compliance, helping them build innovative yet responsible FinTech solutions. Understanding how to balance user experience, data security, and regulatory mandates is key to launching scalable and sustainable ventures in today’s ecosystem.
As India advances toward a digital-first financial future, with rapid adoption of technologies like UPI, account aggregators, and AI in finance, acquiring FinTech skills is no longer optional. It is a strategic investment one that can shape careers, inspire innovation, and strengthen the financial ecosystem. Whether you are looking to upgrade your skills, transition into a new role, or launch a FinTech venture, FinTech education offers the roadmap to relevance and impact in a changing financial world.
In today’s digital era, data is the new currency and now here is this more evident than in the financial and securities markets. Every tick, trade, and transaction generate valuable data that can be harnessed to make smarter investment decisions, detect anomalies, and predict market trends. This is where Data Science steps in as a game-changer.
The Rise of Data Science in Finance
Data Science combines statistical methods, machine learning, and domain expertise to extract meaningful insights from complex datasets. In the context of securities markets, it plays a critical role in areas like:
Algorithmic Trading – Building models that automatically execute trades based on historical and real-time data.
Risk Management – Predicting and mitigating financial risk using predictive analytics.
Sentiment Analysis – Analysing financial news and social media to understand market sentiment.
With these applications, data science is no longer a “nice-to-have” skill it’s becoming a necessity for financial professionals, analysts, and traders alike.
Why It Matters for Securities Markets
Securities markets are dynamic and highly data-driven. Traditional analysis tools are no longer sufficient to handle the volume, velocity, and variety of financial data. Data science helps cut through the noise, offering actionable insights that are both fast and reliable.
From forecasting stock prices to evaluating credit risk, the integration of data science improves accuracy, efficiency, and decision-making capabilities in the capital markets ecosystem.
The NISM Approach
At the National Institute of Securities Markets (NISM)—an educational initiative established by the Securities and Exchange Board of India (SEBI), we recognize the growing need for data-driven expertise in the financial domain. Through our Certificate Program in Data Science (Basic), we provide participants with a strong foundation in:
Programming tools like Python and R
Data visualization using Tableau and Power BI
Statistical analysis, machine learning, and real-time simulation
Applications tailored specifically to securities markets
Whether you’re a finance professional, student, or tech enthusiast, this program helps bridge the gap between theoretical concepts and real-world applications.
As the financial world continues to evolve, data literacy will be a critical differentiator. Those who can read, analyse, and act on data will shape the future of investing.
Now is the time to equip yourself with the tools and knowledge to thrive in this data-driven economy.
Ready to dive into the world of financial analytics? Explore our Certificate Program in Data Science and take the first step toward a smarter financial future.
In recent years, data science has quietly become one of the most powerful tools in the world of finance. In India’s fast-growing securities markets, it’s doing more than just crunching numbers—it’s changing how people invest, trade, and manage risks. Whether you’re a seasoned trader or just someone curious about stocks on Zerodha or Groww, data science is likely playing a bigger role in your financial journey than you realize.
So what exactly is data science doing in the stock market? In simple terms, it’s helping us make sense of huge amounts of data. Every second, India’s stock exchanges—like the BSE and NSE—generate an overwhelming flow of information: stock prices, trade volumes, news reports, global indicators, and even tweets. No human can process all that in real time. But machine learning algorithms and AI tools can.
One of the most exciting applications is algorithmic trading. These are computer programs that scan the market and make trades automatically based on pre-set rules. They can react to changes in milliseconds—way faster than a human. For example, if a stock suddenly drops below a certain threshold, the algorithm can instantly sell it to prevent losses. In India, a large percentage of trades on the stock exchange are already happening through such systems.
Sentiment analysis is another game-changer. By analyzing social media posts, financial news, and online forums, data science tools can pick up on public mood about a company or market sector. If there’s growing positive sentiment about a company, it might be a good signal to buy. If the sentiment turns negative, investors can exit before prices crash. This kind of insight used to be based on gut feeling—now it’s backed by real-time data.
But it’s not just about making profits. Risk management and fraud detection have also improved thanks to data science. SEBI and other regulators are using AI tools to identify unusual trading patterns that could signal insider trading or manipulation. This helps keep the markets safer and more fair for everyone.
What’s also exciting is that data science is no longer limited to big financial firms. Startups and fintech platforms in India are building tools that give retail investors access to advanced analytics. Educational platform NISM is offering courses that help finance professionals and students learn how to use data science effectively.
Of course, there are challenges. Algorithms can go wrong, models can be biased, and there’s always a risk of over-reliance on technology. That’s why regulation is so important. SEBI is working to ensure these tools are used ethically, and with proper oversight.
In the end, data science is helping India’s securities markets become more efficient, transparent, and inclusive. It’s leveling the playing field, making complex trading strategies accessible to everyday investors, and bringing a new level of intelligence to how we invest. As technology continues to evolve, one thing is clear—data isn’t just shaping the markets, it’s shaping the future.
Merchant banking firms, by whatever name they are referred, have been playing a pivotal role in global economic growth for centuries. It took an organized form in Europe and the UK in the 18th century. It started with assisting in trade finance and then expanded to complete financial and advisory services. In India, SBI and ICICI set up their merchant banking divisions in early 1970s. In 1992, SEBI mandated the registration of merchant bankers to carry out their activities in Indian securities markets.
The global investment banking market is estimated at around $380 billion in 2024 (more than Rs. 32 lakh crores). India’s investment banking business reached $1.3 bn in 2024 (approx. Rs. 11,050 crores) in terms of fees earned by Indian investment bankers. Kotak Mahindra leads with 7.2% of the total fees generated by Indian investment bankers. Fees are substantially received from two segments:
Equity Capital Markets (fundraising from the market – debt and equity)
Mergers and Acquisition advisory
ECM raised nearly $72.3 bn from Indian investors. Of which, IPOs reached an all-time high worth $20.5 bn while FPO raised $51.6 bn this year surpassing all records.
M&A value and volumes fluctuate depending on global and local economic sentiments. 2024 ends with nearly 3000 transactions with deal value of around $80.5 billion (nearly Rs. 7 lakh crores). Domestic M&A reached $41.9 bn, inbound M&A grew to $29.6 bn; and outbound M&A grew to $8.3 bn.
Source: Extracted from https://indiadispatch.com/p/india-investment-banking-2024-full-review
This market is significantly driven by the following:
Growth in emerging markets raises demand for orderly growth of the corporate sector, development of newer and innovative financial products, application of technological advances to achieve depth and attain global reach.
Demand for funds for growth and expansion.
Growing complexity in corporate finance and capital markets. Companies seek professional advice for navigating complex financial transactions.
Sustainability and ESG concerns.
Services
Investment banking institutions offer a wide array of services to clients, among others, including:
Mergers and Acquisitions (M&A) Advisory: Investment banks advise companies on mergers, acquisitions, and other strategic transactions.
Fundraising and Underwriting Securities: Investment banks facilitate raising funds through various financial instruments.
Project management and credit syndication: They assist companies in project planning, including writing feasibility reports and negotiating with financial institutions. They also assist in arranging for short – long term funds from banks and financial institutions.
Financial Advisory: They provide financial advice to clients on various matters, including strategy, restructuring, valuation, etc.
Research: They conduct research on companies, industries, special themes, and markets to provide their insights and recommendations to clients.
Structure of investment banking
The investment banking industry is classified into three categories from a size perspective:
Bulge bracket (upper tier)
Middle market (mid-level businesses)
Boutique market (small and specialised businesses)
From the structural perspective, investment banking firms are classified into the following categories:
Full services banks: These firms provide both advisory and banking services, and research on a wide range of financial products.
Financial conglomerates: These companies offer all kinds of banking and other financial services combined with investment banking services.
Independent investment banks: These firms exclusively offer investment banking services that include, among others, fundraising, and corporate advisory.
Qualities
There is a tough competition to enter into this profession. There are a few critical skills and qualities a student should inculcate before he or she is out in practice. They are:
Ability to maintain complete confidentiality on assignments he or she is working on.
Commitment to ethical practices as Investment bankers face situations of conflict of interests
Optimum mix of qualitative attitude and quantitative skill set.
Institutions should help students to develop both qualitative and quantitative skill sets. Qualitative skill sets include an enabling attitude, commitment to ethics and integrity, pleasant personality, effective communication skills, creative and out-of-the-box thinking, good presentation skills, etc. Cultivating quantitative skill sets include, among others, good knowledge of multi-disciplines including corporate strategy, corporate finance, financial accounting, investment finance, financial modeling, and adequate command over language, etc.
Getting into investment banking
It is not easy to enter into the core of the investment banking profession unless one is from one of the reputed IIMs. Alternatively, one is a chartered accountant with adequate soft skills or one has undergone a specialised module on investment banking at reputed institutions. One can also enter laterally into a large and reputed investment bank after gaining a couple of years of experience in mid-level or bouquet firms.
Every year this sector needs a large talent pool over and above served by the IIMs and CAs at all levels of job profiles. Middle to lower levels of job profiles remain unfilled and offer good opportunities to deserving candidates. One may have to initially work on pitch documents, sector and company analysis, developing financial models for valuation assisting Analysts or Associates in a typical investment banking firm.
Another way to enter into an investment banking firm is to gain internships in these firms. during one’s studies. This will, however, not guarantee an entry but it will increase the chances of culminating into a full-time job.
Courses offered by reputed academic institutions which are generally known for strong industry-academic association and designed their courses in consultation with industry professionals or industry association would also help students to get entry into the investment banking sector. It is particularly helpful when investment banking professionals in practice are invited to teach or/and share their experiences on a regular basis.
NISM offers one such specialised certificate course on investment banking in association with the Association of Investment Banking of India.
Poised for higher growth
The investment banking industry has been contributing in achieving orderly economic growth by assisting companies and governments to raise funds and offering strategic advice for corporate restructuring to create value. In order to adapt to clients’ expectations, evolving regulations, geo-political changes, and technological advances, investment bankers have to continuously innovate to manage the changes. There may be temporary ups and downs along with economic cycles but this sector continues to witness significant growth in times to come.
Building a Skilled Financial Workforce for Viksit Bharat 2047
As Bharat progresses towards 2047, the realization of the Viksit Bharat vision will be driven by the collective strength of its people, industries, and financial institutions. One of the key pillars of this transformation is robust capital investment, which is essential for sustaining a nominal GDP growth rate of 11-12%. Achieving this economic milestone requires a consistent influx of investments into infrastructure, industry, and innovation, ensuring long-term economic stability and growth.
The Need for Capital Investment
A study conducted by the State Bank of India (SBI) estimates that to maintain an average real GDP growth rate of 8-9%, India will require ₹1,094 lakh crore in capital investments by 2036. Of this:
• ₹323 lakh crore is expected to come from banks.
• ₹643 lakh crore must be generated through equity markets.
This represents an unprecedented demand for equity financing, signifying a historic shift in India’s financial landscape. Traditionally, investors have remained dependent on banks to raise funds. The banking system in the country has been useful in meeting credit demand but going forward equity will have to be used to raise financial resource required for rapid growth. Equity financing spreads risk among investors, reducing the burden on financial institutions while fostering a more resilient economic framework. Additionally, this shift will help create a strong base of retail investors, enabling broader public participation in India’s economic growth story and supporting the vision of Viksit Bharat.
The Role of Equity Markets in Capital Formation
To meet these financial requirements, India’s equity markets must expand substantially, particularly through Initial Public Offerings (IPOs). The scale of fund mobilization required is unprecedented, surpassing all previous records. The rapid rise in IPO activity in recent years reflects this growing trend:
• 2024: Over 317 IPOs, raising ₹1.8 trillion (a record-breaking figure).
• 2021: ₹1.3 trillion.
• 2023: ₹57,600 crores.
In fact, in 2024, as per the WFE report, India bucked the global trend as far as IPOs were concerned. The capital raised through IPOs in 2024 worldwide recorded a slight downtick (-0.8%) on 2023. Globally, the number of IPOs was at its lowest in 2024, with markets welcoming only 1,133 IPOs in the calendar year.
Given the country’s current economic trajectory, this momentum must continue. A substantial increase in public listings across diverse industries is crucial for fuelling India’s growth aspirations. To achieve this, companies need access to well-structured financial advisory services, efficient capital market execution, and compliance with regulatory frameworks—all of which require a specialized and highly skilled workforce. Role of institutions such as Merchant banks and Underwriters will become important in the years to come.
The Demand for Skilled Professionals in Capital Markets
The rapid expansion of India’s capital markets has led to a growing demand for skilled professionals capable of handling complex financial transactions, regulatory compliance, and investor relations. As companies prepare to go public, they require expertise in:
• SEBI-regulated activities such as IPOs, Further Public Offerings (FPOs), OFS, open offers, buybacks, and delistings.
• Financial structuring and advisory services, including capital raising, due diligence, and investment strategies.
• Regulatory compliance, governance, and risk assessment to ensure smooth execution of transactions.
With the increasing complexity of financial markets, there is an urgent need for Merchant bankers, financial analysts, market intermediaries, and compliance experts who can navigate the regulatory landscape, assess market risks, and facilitate efficient capital formation. Merchant banking in India plays a vital role in financial advisory and capital raising, as it facilitates mergers, acquisitions, and IPOs, making Merchant banking indispensable for growing businesses in the dynamic Indian market.
Bridging the Skill Gap Through Focused Learning
To develop a robust talent pool for India’s financial markets, focused learning programs are essential. These programs should be designed to equip professionals with:
• Specialized knowledge of capital markets and regulatory requirements.
• Hands-on experience with IPO management, Investment banking, and market operations.
• Practical training in financial modelling and pricing of assets.
• Mentorship initiatives led by industry experts to ensure real-world applicability. For instance, helping participants understand how Investment banking helps in growth of capital market.
By fostering a highly skilled workforce, India can strengthen its financial markets, ensuring that companies raise capital efficiently (suitably aided by Investment bankers) and investors gain confidence in market stability. This will not only accelerate entrepreneurial growth but also attract global investments, positioning India as a leading global financial hub.
Towards a Stronger Financial Future
As India embarks on this journey towards Viksit Bharat 2047, a clear vision, industry expertise, and a well-developed financial system will be crucial. By deepening capital markets, fostering innovation, and nurturing financial talent, India can position itself as a global economic powerhouse.
A resilient and prosperous economy, backed by a strong financial ecosystem and a highly skilled workforce, will ensure that Bharat emerges as a leader in the global financial landscape. This will create immense opportunities for future generations, fulfilling the promise of a self-reliant, economically vibrant, and financially inclusive India.
Understanding what an IPO entails is essential before delving into the documents. IPO is the process through which a private company offers shares of its stock to the public for the first time. This allows the company to raise capital by selling ownership stakes to investors. IPOs are often used by companies to raise funds for various purposes such as expansion, debt repayment, or investing in research and development. Filing the DRHP with the regulatory body marks the initiation of the IPO process. As the company progresses to the RHP and, finally, the Prospectus, it ensures compliance with disclosure requirements mandated by regulatory authorities. The Disclosure Document, the Red Herring Prospectus (RHP), and the Prospectus are important documents that reveal essential information for potential investors. The information these documents disclose significantly influences a company’s valuation and attractiveness to investors. They serve as comprehensive sources of information about the company, its operations, financial health, risks, and prospects. Investors rely on the information provided in the RHP and Prospectus to gauge the company’s credibility, financial stability, growth potential, and risk factors associated with investing in the company. In India, all the documents are reviewed by the Securities and Exchange Board of India (SEBI), whereas in the USA, they are done by the U.S. Securities and Exchange Commission (SEC).
DRHP
The Draft Red Herring Prospectus is an initial document filed with regulatory bodies by a company intending to launch an Initial Public Offering (IPO) or a public issue. The DRHP contains essential information about the company’s business, operations, financial performance, and prospects. This document provides preliminary insights into the company’s fundamentals but does not disclose all the information required for investors to make investment decisions. It offers insights into the company’s fundamentals, operations, and prospects but lacks the offer price and the number of shares or securities to be offered. It is usually circulated to potential investors for initial assessment and feedback before finalizing the offering details in the subsequent stages, such as the Red Herring Prospectus (RHP) and the final Prospectus. SEBI mandates that companies planning to go public must file a Draft Red Herring Prospectus (DRHP) with them. SEBI reviews the DRHP to ensure it complies with all the regulatory requirements, including disclosure norms and investor protection guidelines.
RHP
Once SEBI approves the DRHP, it is revised and finalized into the Red Herring Prospectus (RHP). The Red Herring Prospectus (RHP) is an evolved version of the DRHP, is a more comprehensive document. It includes details about the company, its operations, the IPO specifics (such as issue size, and price band), and the risks associated with the investment. The RHP provides more comprehensive information about the company, its operations, financials, and risks associated with the investment. The RHP acts as an intermediary stage between the preliminary DRHP and the Final Prospectus, aiming to provide a more comprehensive understanding of the investment opportunity while still withholding the exact pricing details until the final stages of the offering. SEBI also scrutinizes the RHP to ensure that it provides accurate and adequate information for investors to make decisions. SEBI’s oversight ensures that the information disclosed in the RHP aligns with regulatory standards, safeguarding investors’ interests and maintaining market integrity. Companies utilize strategies such as roadshows, presentations, and investor meetings during the RHP stage to engage potential investors. They leverage the RHP as a key document to communicate the investment opportunity, highlighting the company’s strengths and growth prospects to generate interest and build investor confidence.
Prospectus
Upon SEBI’s approval of the RHP, the company can proceed with the IPO, making the RHP available to potential investors during the offer period. The Prospectus is the finalized document that discloses all pertinent information about the offering. It includes the offer price, the quantum of securities, and other essential details. The Prospectus is filed with the regulatory authority and is distributed to potential investors to enable them to make informed investment decisions. SEBI’s role concerning the Prospectus involves evaluating its content, verifying compliance with regulations, and ensuring that it contains all essential details for potential investors. Finalized pricing details and information on the number of shares/securities offered are incorporated, impacting the financial statements and use of proceeds sections. Once SEBI approves the Prospectus, the company can proceed with offering its securities to the public, allowing the approved Prospectus to be disseminated to prospective investors during the offer period. Companies and underwriters conduct extensive due diligence to verify the accuracy and completeness of information in the Prospectus.
Common sections found in a final Prospectus: Cover Page, Risk Factors, Offering Details, About the Company, Management Discussion and Analysis (MD&A), Financial Information, Final Pricing, Legal and Regulatory Information, Corporate Governance, Other Information (tax considerations, industry analysis, market conditions, use of proceeds, and any other disclosures crucial for making investment decisions).
Overall, these documents represent a progressive disclosure of information. The DRHP initiates the disclosure process, offering preliminary insights into the company. The RHP provides deeper information, building upon the initial disclosure. The Prospectus culminates this process, offering a comprehensive view, including critical details required by potential investors. They help investors navigate the complexities of offerings while fostering transparency and informed decision-making. Offering transparent and positive disclosures about a company’s financial health, growth prospects, and risk management strategies can enhance its valuation and attractiveness to potential investors.
