New Delhi, Nov. 17 -- The Chief Economic Advisor (CEA) of India, V Anantha Nageswaran, expressed his disappointment on Monday, arguing that Initial Public Offerings (IPOs) are increasingly becoming exit vehicles for early-stage investors in a venture, a trend he believes is undermining the true spirit of public markets.

Speaking at an event in Mumbai, Nageswaran stated that India's capital markets must develop "not just in scale, but in purpose" as well.

The CEA also cautioned against celebrating the wrong milestones, such as market capitalisation (m-cap) or the volume of derivative trading, clarifying that these are not measures of "financial sophistication".

He added that such a focus "only risks diverting domestic savings away from ...