Ministry, SEBI train Panchayat members to invest in stocks and mutual funds

New Delhi: To provide financial literacy to grassroots level, the Ministry of Panchayati Raj (MoPR) in collaboration with the Securities and Exchange Board of India (SEBI), launched a nationwide training programme to panchayat members and block level officials of Panchayati Raj institutions about in financial planning, investment in equity including stocks and mutual fund and safeguarding against fraudulent investment schemes.

This initiative aims to promote financial literacy and investor education at grass roots level, empowering representatives with knowledge to educate rural communities across India, a statement from the Ministry said.

"By involving Panchayati Raj Institutions (PRI)s, the initiative aims to unlock the vast untapped potential of rural India, ensuring that securities market participation becomes geographically balanced and inclusive, " the Ministry said.

The first such training program was held earlier this month in Pune in Maharashtra in which over 100 Sarpanch and Block level representatives from various districts of Maharashtra. The program focused on equipping elected block level representatives with essential knowledge on financial planning, savings, investments, safeguarding against fraudulent schemes, awareness about securities market ecosystem and available investment avenues in regulated space. Similar training already going on in other places also, said an official in the Ministry.

The initiative reflects the shared vision of SEBI and the Ministry to strengthen Panchayats as centres of informed decision making, enabling representatives to disseminate financial literacy. The programme aims to empower 2.5 lakh panchayats across the country and make securities market participation inclusive. The training will be imparted on practical financial skills including understanding the securities market, identifying regulated investment opportunities, budgeting, saving, insurance and safe investment practices.

In India, the number of mutual fund investors has more than doubled, from 2.2 crore in March 2020 to over 5 crore in September 2024. Demat accounts have also surged, from 4.2 crore in March 2020 to over 10 crore in September 2024.

Assets under management (AUM) of mutual funds rose sharply, from Rs 22 lakh crore in March 2020 to over Rs 67 lakh crore in September 2024. Yet this growth has been largely urban centric.

In comparison, bank deposits grew slow pace from ₹137 lakh crore to ₹225 lakh crore during the same period.

"These figures show that Indians are increasingly turning to capital markets for higher returns and long-term security. To ensure that this growth is broad-based and inclusive, the MoPR–SEBI partnership will bring financial literacy to rural India, " the statement said.

“By involving PRIs, the initiative aims to unlock the vast untapped potential of rural India, ensuring that securities market participation becomes geographically balanced and inclusive,” said the statement.

Stating that these local governance bodies are often the first point of contact for villagers seeking guidance or support, an official in the Ministry said.

"This programme will be a paradigm shift in securities market outreach, a movement to democratize financial knowledge, and a strategy to empower rural India for wealth creation and protection through legitimate investment avenues, " said the statement.

The National Institute of Securities Market will train officials in panchayats under its faculty development programme. SEBI empanelled trainers in collaboration with trained PRI resource persons, will hold workshops at the district and block levels.

A network of 3,874 Master Trainers is being established across six states – 574 trainers in Maharashtra (covering 287 Blocks), 1,652 in Uttar Pradesh (826 Blocks), 500 in Gujarat (250 Blocks), 528 in Jharkhand (264 Blocks), 504 in Jammu & Kashmir (252 Blocks), and 116 in Tripura (58 Blocks).

The elected representatives at the block and village level will serve as ambassadors of financial literacy in their communities, said the official.