New Delhi, June 3 -- As concerns mount over foreign investor selling, soaring SIP inflows and market liquidity, Capitalmind founder Deepak Shenoy believes the solution is not to restrict money flows but to expand investment opportunities. According to him, India needs more companies to list on stock exchanges, creating a larger free float and allowing growing domestic savings to be deployed across a wider set of businesses.

Shenoy argued that blaming SIPs for market distortions misses the larger issue. India's pool of listed companies has not expanded fast enough to absorb the growing flow of domestic capital, resulting in liquidity concentrating in a limited number of stocks.

"Sure, it's also fashionable to blame SIPs. But we need to l...