Explained: India’s Capital Market Data for May 2026

The Securities and Exchange Board of India (SEBI) Bulletin for May 2026 presents a mixed picture of India’s securities market.

On one side, domestic fundraising remained strong. Companies raised ?54,766.06 crore through equity instruments during April 2026. Mutual fund assets also rose to about ?81.92 lakh crore. In addition, the combined number of investor accounts maintained by India’s two depositories crossed 22.67 crore.

On the other side, Foreign Portfolio Investors (FPIs) recorded a net withdrawal of nearly ?70,884.98 crore during April 2026. Market volatility also increased compared with the average recorded during the previous financial year.

Therefore, the bulletin points to an Indian capital market supported by domestic savings, institutional activity and private fundraising. However, it also reveals continued exposure to foreign capital movements, market concentration and short-term price risk.

Key Points

• Companies raised ?54,766.06 crore through equity instruments in April 2026.
• Preferential allotments contributed ?48,360.83 crore, or more than 88% of total equity fundraising.
• Eleven Initial Public Offerings (IPOs) raised ?2,493.18 crore.
• Private placements of corporate debt raised about ?34,000.35 crore.
• Foreign Portfolio Investors withdrew a net ?70,884.98 crore.
• Mutual funds received net inflows of about ?3.22 lakh crore.
• Mutual fund assets reached approximately ?81.92 lakh crore.
• Combined depository investor accounts reached about 22.68 crore.
• National Stock Exchange cash-market turnover reached approximately ?26.94 lakh crore.
• Volatility increased across the Sensex, Nifty 50 and wider market indices.

Why ABC Live Is Publishing This Report Now

SEBI’s monthly bulletin contains important information about India’s capital market. However, the data is spread across 66 detailed statistical tables. As a result, ordinary investors may find it difficult to identify the larger trends.

Moreover, readers need to understand the reporting period correctly. SEBI published the bulletin on June 12, 2026, and titled it the SEBI Bulletin—May 2026. However, many annexure tables report market data only up to April 30, 2026.

Therefore, the bulletin should not be treated as a real-time picture of market conditions in June 2026. Instead, it provides a structured regulatory record of market activity mainly during April 2026.

ABC Live reviewed the bulletin to explain what the figures mean for investors, listed companies, regulators, mutual fund holders and India’s wider financial system.

What Is the SEBI Monthly Bulletin?

The SEBI monthly bulletin is an official statistical publication covering India’s regulated securities market.

It brings together information from stock exchanges, depositories, mutual funds, portfolio managers, custodians and other registered market institutions. Therefore, it acts as a monthly statistical health report for the capital market.

The bulletin covers several areas, including:

• capital raised by companies;
• public issues and private placements;
• stock-market turnover;
• equity and currency derivatives;
• commodity trading;
• foreign portfolio investment;
• mutual funds;
• portfolio-management services;
• depository accounts; and
• securities settlement activity.

However, the bulletin mainly presents data. It does not always explain why a trend occurred or what it means for ordinary investors. Therefore, its figures require further analysis.

How Much Equity Capital Did Companies Raise?

Indian companies and other entities raised ?54,766.06 crore through equity instruments during April 2026.

However, the headline figure needs closer examination because most of the money did not come through public IPOs.

Fundraising route	Number of issues	Amount raised
Mainboard IPOs	4	?2,098.85 crore
Small and Medium Enterprise IPOs	7	?394.33 crore
Total IPOs	11	?2,493.18 crore
Rights issues	12	?1,412.05 crore
Preferential issues	140	?48,360.83 crore
Qualified Institutional Placements	1	?2,500 crore
Total equity raised	164	?54,766.06 crore

Preferential Allotments Dominated Equity Fundraising

Preferential issues contributed nearly 88.3% of the total equity capital raised during the month.

Under a preferential issue, a listed company issues shares or other securities to a selected group of investors. These securities are not offered to the wider public through an IPO.

Companies may use preferential allotments to bring in promoters, strategic investors, private equity funds or institutional investors. The route can provide faster access to capital. However, it can also change control, dilute existing shareholders or strengthen promoter influence.

Therefore, the ?54,766 crore headline does not represent a broad public fundraising boom. Instead, it shows that selected-investor allotments remained the main source of equity capital during April.

What Happened in the IPO Market?

A total of 11 IPOs raised approximately ?2,493.18 crore during April 2026.

Of these:

• four mainboard IPOs raised ?2,098.85 crore; and
• seven Small and Medium Enterprise (SME) IPOs raised ?394.33 crore.

The IPO proceeds included approximately:

• ?1,912.03 crore in fresh capital; and
• ?581.15 crore through Offer for Sale components.

Fresh capital enters the issuing company. Therefore, the company may use it for expansion, debt repayment, working capital or other business needs.

In contrast, money raised through an Offer for Sale goes to existing shareholders who sell their shares. Consequently, that amount does not directly strengthen the company’s operating capital.

Fresh capital represented about 76.7% of total IPO proceeds during the month. This is important because most of the IPO money went into the issuing companies rather than only providing an exit to existing shareholders.

Was the IPO Market the Main Source of Equity Capital?

No.

Although IPOs attract wide media and investor attention, they contributed only about 4.6% of total equity fundraising during April.

In comparison, preferential issues contributed more than 88%. Meanwhile, one Qualified Institutional Placement raised ?2,500 crore.

Therefore, IPO statistics alone cannot provide a complete picture of Indian corporate fundraising. Private and institutional routes played a much larger role during the month.

What Does the Bulletin Say About Corporate Debt?

Companies raised around ?34,000.35 crore through private placements of corporate debt during April 2026.

The bulletin records 130 private-placement issues.

Listing route	Number of issues	Amount raised
Listed only on NSE	41	?19,555.29 crore
Listed only on BSE	85	?12,830.41 crore
Listed on both exchanges	4	?1,614.65 crore
Total	130	?34,000.35 crore

Private placement remained the main route for corporate debt fundraising. Through this method, companies issue debt securities to selected investors rather than making a public bond offer.

This route is often faster and more flexible. Moreover, institutional investors may prefer privately placed debt because it allows direct negotiation on pricing, maturity and security.

However, the dominance of private placements also limits direct retail participation in India’s corporate bond market. Therefore, India still needs a deeper and more accessible public debt market.

What Happened to Foreign Portfolio Investment?

Foreign Portfolio Investors recorded:

• gross purchases of ?3,62,379 crore;
• gross sales of ?4,33,263.98 crore; and
• net investment of minus ?70,884.98 crore.

In dollar terms, the net withdrawal was approximately US$7.56 billion.

This was a substantial monthly outflow. Moreover, it was equal to almost 46% of the net foreign portfolio investment outflow recorded during the entire 2025–26 financial year.

Foreign investors may sell Indian securities for several reasons. For example, global interest rates, geopolitical risk, currency expectations, high market valuations and a shift towards safer assets can influence investment decisions.

However, SEBI’s annexure provides statistical figures rather than a detailed account of investor motives. Therefore, the data proves the scale of the withdrawal, but it does not establish one single cause.

Did Foreign Investors Abandon India?

The bulletin does not support such a broad conclusion.

Despite the monthly net outflow, assets held under custody for Foreign Portfolio Investors increased from about ?69.57 lakh crore at the end of March to approximately ?74.93 lakh crore at the end of April.

That represents an increase of nearly ?5.36 lakh crore.

At first sight, rising custody assets may appear inconsistent with heavy foreign selling. However, the two figures measure different things.

Net investment records purchases minus sales during the month. In contrast, assets under custody reflect the market value of securities still held at the end of the reporting period.

Therefore, rising share prices, changes in bond values, currency movements or portfolio composition may increase the value of remaining assets even when foreign investors are net sellers.

Consequently, the bulletin shows strong foreign selling during April. Yet, it does not show a complete foreign withdrawal from Indian markets.

What Happened to Mutual Funds?

Mutual funds recorded strong activity during April 2026.

Mutual fund indicator	April 2026
Gross mobilisation	?15.20 lakh crore
Redemptions and repurchases	?11.97 lakh crore
Net inflow	?3.22 lakh crore
Assets at the end of the period	?81.92 lakh crore

Private-sector mutual funds received net inflows of approximately ?2.81 lakh crore. Public-sector mutual funds recorded another ?40,978 crore in net inflows.

As a result, total mutual fund assets increased from around ?73.73 lakh crore at the end of March 2026 to approximately ?81.92 lakh crore at the end of April.

However, the entire increase did not come from fresh investor money. Net inflows accounted for about ?3.22 lakh crore. Therefore, market valuation changes and other portfolio movements likely contributed to the remaining increase.

What Does Mutual Fund Growth Mean?

The data shows the growing role of domestic savings in India’s securities market.

Mutual funds collect money from households, companies and institutions. They invest this money in equities, bonds, money-market products and other securities.

Therefore, rising mutual fund assets can create a large domestic pool of capital. This pool may partly reduce India’s dependence on foreign portfolio investment.

However, mutual fund asset growth does not guarantee stable returns. Asset values may rise because markets perform well, and they may fall when markets decline.

Investors should therefore distinguish between:

• fresh net inflows;
• asset growth caused by market appreciation;
• changes caused by redemptions; and
• portfolio or accounting adjustments.

How Fast Are Demat Accounts Growing?

At the end of April 2026:

• the National Securities Depository Limited (NSDL) reported approximately 4.47 crore investor accounts; and
• the Central Depository Services Limited (CDSL) reported approximately 18.21 crore investor accounts.

Together, the two depositories recorded about 22.68 crore investor accounts.

Compared with April 2025:

• NSDL investor accounts increased by about 12.57%; and
• CDSL investor accounts increased by about 17.68%.

The figures confirm that access to India’s securities market continues to expand.

However, investor accounts should not be treated as the number of unique investors. One person may hold more than one account or maintain accounts with different depository participants.

Therefore, account growth is a useful measure of market access, but it is not an exact count of individual investors.

Are All Demat Accounts Active?

No.

The bulletin reports:

• about 1.28 crore active accounts with NSDL; and
• approximately 6.37 crore active accounts with CDSL.

Combined active accounts stood at roughly 7.65 crore.

This is far below the total of about 22.68 crore accounts. Therefore, a large share of demat accounts may be dormant, inactive or used only occasionally.

SEBI treats an account as inactive or dormant when no transaction has taken place for a continuous period of 12 months.

Notably, CDSL’s number of active accounts was approximately 4.35% lower than a year earlier, even though its total investor accounts increased by about 17.68%.

This gap needs attention. It may show that account opening is growing faster than sustained investor participation.

Moreover, dormant accounts can create risks related to outdated Know Your Customer records, missing nominees, unauthorised access and fraudulent transactions.

Which Exchange Dominated Cash-Market Trading?

The National Stock Exchange of India (NSE) remained much larger than BSE in cash-market turnover during April 2026.

Exchange	April turnover	Average daily turnover
BSE	?1.86 lakh crore	?9,323 crore
NSE	?26.94 lakh crore	?1.35 lakh crore

NSE cash-market turnover was more than 14 times the turnover recorded on BSE.

This concentration gives NSE a dominant role in price discovery and market liquidity. Traders and investors can usually buy or sell securities more easily where turnover is high.

However, concentration also increases the importance of operational resilience. A major technical failure or disruption at a dominant exchange can affect a large part of the market.

Therefore, SEBI and market institutions must continue to strengthen disaster recovery, cyber security, business continuity and exchange-level risk controls.

Did Market Volatility Increase?

Yes.

Daily volatility rose across major indices compared with the average recorded during 2025–26.

Index	2025–26 volatility	April 2026 volatility
BSE Sensex	0.85%	1.27%
BSE 500	0.91%	1.19%
Nifty 50	0.86%	1.15%
Nifty Next 50	1.13%	1.40%
Nifty 500	0.91%	1.17%

Sensex volatility increased by almost 50% compared with the previous financial-year average. Similarly, Nifty 50 volatility increased by about 34%.

Moreover, the Nifty Next 50 remained more volatile than the Nifty 50. This is expected because companies outside the largest index group may face wider price movements and lower liquidity.

Higher volatility does not automatically mean that a market is unhealthy. Nevertheless, it means prices moved more sharply and investors faced greater short-term risk.

What Does the Derivatives Data Show?

NSE’s equity derivatives market continued to operate at a scale far greater than the cash market.

During April:

• index futures turnover exceeded ?5.21 lakh crore;
• stock futures turnover was about ?26.24 lakh crore;
• index call options generated approximately ?5.89 lakh crore in premium turnover; and
• index put options generated about ?5.36 lakh crore in premium turnover.

The notional value of option contracts was much larger. However, notional turnover should not be compared directly with cash-market turnover because it does not represent the actual amount paid by traders.

Option premium turnover provides a more realistic measure of the money exchanged for option contracts.

Therefore, reports should avoid presenting large notional derivatives values without explaining what those figures mean.

What Does Portfolio-Management Data Reveal?

Portfolio managers reported total assets of approximately ?42.36 lakh crore as of April 30, 2026.

However, this figure should not be interpreted only as money managed for wealthy private investors. A major share of these assets came from the Employees’ Provident Fund Organisation and other provident funds.

Therefore, the portfolio-management total also includes large institutional retirement and provident-fund mandates.

This distinction matters because the ?42.36 lakh crore figure does not represent ordinary retail Portfolio Management Service investments alone.

SEBI’s Wider Role Goes Beyond Statistics

The monthly bulletin shows the size and direction of the market. However, statistics alone cannot protect investors.

SEBI must also supervise listed companies, examine disclosures, regulate intermediaries and take enforcement action where necessary.

For example, ABC Live’s report on the SEBI order on Rajesh Exports examines serious prima facie concerns involving group revenue, foreign subsidiary records, promoter control, fund movement and audit quality.

The Rajesh Exports matter also shows why market growth must be supported by verifiable financial statements. Rising turnover and investor accounts have limited value if listed-company information cannot be tested through reliable records.

At the same time, market confidence increasingly depends on the quality of non-financial information. ABC Live’s report on the SEBI ESG Rating Circular 2025 examines SEBI’s attempt to regulate Environmental, Social and Governance rating providers.

Therefore, investor protection now covers both traditional financial reporting and newer sustainability-related claims.

ABC Live Analysis

Domestic Capital Is Becoming More Important

The bulletin shows strong mobilisation through mutual funds, preferential issues, Qualified Institutional Placements and corporate debt.

At the same time, foreign investors withdrew nearly ?70,885 crore.

Therefore, domestic institutions and private capital channels played a major role in supporting market activity during the period.

This may improve India’s financial resilience. However, it also makes the quality of domestic financial intermediation increasingly important.

Mutual funds, pension funds, insurers and other institutions now carry greater responsibility. They must assess risk carefully and protect the long-term interests of investors and beneficiaries.

Headline Fundraising Figures Need Context

The total equity fundraising figure of ?54,766 crore appears very strong.

However, more than 88% came through preferential allotments. Therefore, the figure should not be presented as evidence of a broad public-market fundraising boom.

The IPO market remained active. Nevertheless, it was much smaller than private and selected-investor fundraising.

Investors should therefore ask how capital was raised, who received the securities and how much dilution existing shareholders faced.

Account Opening Is Not the Same as Participation

India now has more than 22 crore demat accounts. However, only about 7.65 crore were classified as active.

Therefore, public policy should move beyond celebrating account-opening numbers.

Regulators and market institutions should also measure:

• sustained investor participation;
• the number of unique investors;
• dormant accounts;
• investor losses;
• grievance resolution;
• unauthorised trading complaints; and
• long-term investment outcomes.

Foreign Outflows Remain a Warning

Domestic inflows can cushion foreign selling. Nevertheless, a net FPI outflow of almost ?71,000 crore in one month remains significant.

Large withdrawals can affect the rupee, share valuations, bond yields and market liquidity.

Therefore, policymakers cannot assume that domestic savings have removed all external financial risk.

Higher Volatility Requires Better Risk Communication

The rise in volatility means investors faced wider price movements.

Consequently, brokers, mutual funds, advisers and online investment platforms should avoid presenting recent returns without adequate risk context.

Moreover, first-time investors need simple explanations of market risk. A growing investor base should not become a larger pool of uninformed traders.

Market Growth Must Be Matched by Stronger Enforcement

Higher fundraising, trading and investor participation create more opportunities. However, they also increase the cost of weak disclosure and poor governance.

The SEBI order on Rajesh Exports demonstrates why financial figures must be traceable and supported by records.

Similarly, the SEBI ESG Rating Circular 2025 shows that investors increasingly depend on claims that go beyond profit and revenue.

Therefore, SEBI’s challenge is not merely to expand the market. It must also ensure that market information remains reliable.

Risks and Concerns

Data Lag

Although this is described as the May 2026 bulletin, many tables provide figures only up to April 30, 2026.

Readers should therefore check the reporting date before drawing conclusions about current market conditions.

Table-Heading and Period Differences

Some annexure headings and reporting periods may appear inconsistent. For example, a table title may refer to an earlier date while its columns contain later data.

Such differences do not automatically invalidate the underlying figures. However, they can confuse readers and reduce the usability of regulatory data.

SEBI should therefore strengthen consistency checks before publishing statistical annexures.

Dominance of Non-Public Fundraising

Preferential issues and private debt placements dominated corporate fundraising.

These routes can improve speed and flexibility. Nevertheless, they offer less direct public participation than IPOs, public bond offers or rights issues.

Moreover, preferential allotments can raise concerns about pricing, dilution and control. Therefore, transparent disclosures remain essential.

Growing Derivatives Exposure

Derivatives activity remained extremely large compared with the cash market.

Derivatives can help investors hedge risk. However, they can also create large losses where traders use leverage without understanding the product.

Therefore, SEBI must continue to monitor retail losses, product suitability, leverage and the quality of risk warnings.

Dormant Demat Accounts

The gap between total and active demat accounts creates operational concerns.

Depositories and intermediaries must maintain strong Know Your Customer controls, nomination records, communication systems and safeguards against unauthorised transactions.

Disclosure and Audit Risk

Strong market data cannot compensate for weak company accounts.

As the Rajesh Exports matter shows, investors need reliable subsidiary records, cash-flow information, audit evidence and related-party disclosures.

Therefore, market supervision must focus on the quality of listed-company information as well as the quantity of market activity.

ESG Information Risk

Environmental, Social and Governance ratings may influence investors, lenders and institutional funds.

However, inconsistent methods or weak supporting data can mislead the market. Therefore, SEBI’s framework for ESG rating providers must balance independence, transparency and accountability.

What Happens Next?

Future SEBI bulletins should be examined for five major trends:

1. whether foreign investors reverse the April outflow;
2. whether mutual fund inflows remain strong;
3. whether IPO fundraising increases relative to preferential allotments;
4. whether market volatility declines; and
5. whether active demat accounts grow alongside total accounts.

In addition, investors should monitor whether domestic institutions continue to absorb foreign selling.

Regulatory developments will also matter. SEBI’s handling of listed-company disclosure cases, audit concerns and ESG ratings will influence market trust.

Therefore, the future health of India’s securities market will depend on both market growth and regulatory credibility.

Frequently Asked Questions

What is the SEBI Bulletin May 2026?

It is SEBI’s monthly statistical publication covering capital raising, stock-market trading, derivatives, foreign investment, mutual funds, depositories and other regulated market activities.

When was the bulletin published?

SEBI published the bulletin on June 12, 2026.

What period does the data cover?

Although the publication is titled the May 2026 bulletin, many annexure tables contain data up to April 30, 2026.

What is the most important finding?

Domestic fundraising and mutual fund activity remained strong. However, Foreign Portfolio Investors withdrew nearly ?70,885 crore during April.

How much money was raised through IPOs?

Eleven IPOs raised approximately ?2,493.18 crore.

Why was total equity fundraising much higher than IPO fundraising?

Preferential issues raised approximately ?48,360.83 crore. Therefore, selected-investor allotments produced most of the equity fundraising.

How many demat accounts were recorded?

NSDL and CDSL together reported about 22.68 crore investor accounts as of April 30, 2026.

Were all these demat accounts active?

No. Combined active accounts were approximately 7.65 crore.

Did mutual funds receive fresh money?

Yes. Mutual funds recorded net inflows of around ?3.22 lakh crore during April.

Did foreign investors invest or withdraw money?

Foreign Portfolio Investors were net sellers. They withdrew approximately ?70,884.98 crore.

Why does the Rajesh Exports order matter to this bulletin?

The bulletin measures market growth. In contrast, the Rajesh Exports order shows why that growth must be supported by accurate accounts, strong audits and effective enforcement.

Why are ESG ratings relevant to capital markets?

Investors increasingly use ESG ratings to assess environmental, social and governance risks. Therefore, weak or unclear ratings may affect investment decisions and market trust.

Conclusion

The SEBI Bulletin May 2026 shows that India’s securities market remains large, active and increasingly supported by domestic capital.

Equity fundraising reached ?54,766.06 crore. Mutual fund assets rose to about ?81.92 lakh crore. Meanwhile, depository investor accounts crossed 22.67 crore.

However, the deeper picture is more complex.

Preferential allotments produced most of the equity fundraising. Foreign investors withdrew almost ?71,000 crore. Market volatility increased, while the number of active demat accounts remained far below the total number of accounts.

Therefore, market expansion alone cannot be treated as proof of market strength.

India also needs reliable disclosures, strong audits, active institutional oversight, clear ESG information and timely regulatory enforcement.

The central lesson is simple: a growing capital market must also become a more transparent, accountable and investor-safe market.

Sources and Methodology

ABC Live reviewed the 66 annexure tables included with the official SEBI Bulletin—May 2026.

The review covered:

• primary-market fundraising;
• IPOs and preferential issues;
• corporate debt placements;
• cash-market turnover;
• equity derivatives;
• foreign portfolio investment;
• mutual funds;
• portfolio-management services; and
• depository accounts.

The figures have been rounded for readability. Therefore, minor differences may arise when they are compared with the original annexure tables.

The bulletin is titled the SEBI Bulletin—May 2026. However, several tables provide figures only up to April 30, 2026. This reporting gap has been clearly identified throughout the explainer.

Sources and Resources

• SEBI Bulletin—May 2026
• Critical Analysis of SEBI Order on Rajesh Exports—ABC Live
• SEBI ESG Rating Circular 2025: Reform or Restraint?—ABC Live

ABC Live: Making Complex Public Issues Simple.