The Securities and Exchange Board of India (SEBI) has come out with a working paper proposing a change in methodology for computing household savings through the Indian securities market.

The financial assets of households as per the current RBI data for the financial year 2022-23 is ₹23.67 lakh crore. Under the proposed methodology, this figure jumps to ₹83.83 lakh crore, which is a difference of ₹60.15 lakh crore.

The Reserve Bank of India (RBI) and the Ministry of Statistics and Programme Implementation publish data on household savings generated through various segments. One of the constituents is investments of households through the securities market.

“The saving pattern of Indian households has changed over time. The revision in methodology will improve the quality and accuracy of data by capturing the actual values and covering the non-included segments and financial instruments in the securities market,” the paper released on Wednesday said.

To arrive at the households’ investments, RBI imputes 35 per cent of the primary market issuance in equity and 40 per cent of public issuance of debt as being mobilised from individuals and HUFs. For arriving at the asset value of the households, only the assets under management (AUM) in mutual funds by high-networth individuals and retail investors are considered.

Three sets of changes proposed to the computation methodology relate to the category of investors, instruments that such investor categories participate in, and the components proposed for inclusion that are absent in the existing methodology.

All domestic Individual investors irrespective of income, HUFs and non-individuals such as NGOs, charities, and trusts are proposed to be included among investor categories. Actual flows from equity and debt will be included for flow computation, including net MF flows, ETF transactions, REITs, InvITs and alternative investment funds. AUM data for individuals and non-profit institutions serving households from AMFI and equity/debt data from depositories will be considered for stock computation.

Resource mobilised through preferential issues, offer for sale, private placement of debt, and security receipts will be now considered for computation. This data relates to the investment generated during the year under consideration.