India's capital markets become more resilient amid global volatility: SEBI chief
New Delhi, March 14
The Securities and Exchange Board of India Chairman Tuhin Kanta Pandey on Saturday said India's capital markets are deepening and becoming increasingly resilient even as global headwinds continue to create volatility.
Speaking at the 'Global Wealth Summit 2026' media event here, the SEBI chief also advised retail investors not to react impulsively to short-term market fluctuations.
"For retail investors, the best strategy would be to remain patient," Pandey said. He also added that markets have historically recovered after major global disruptions.
He said Indian capital markets are expanding in scale, diversity and strength.
"They are deepening, diversified and becoming increasingly resilient. But as markets grow in scale and complexity they also become more closely connected to global developments. And that brings us to the changing landscape in which today's market operates," he told the gathering.
Acknowledging turbulence in global markets, Pandey said geopolitical tensions, technological disruptions and energy shocks are contributing to uncertainty.
"Geopolitical tensions are shaping economic relationships. Conflict in the Middle East has massively disrupted energy supplies. Inevitably, capital markets have been severely impacted," he said.
He noted that volatility has become a defining feature of modern financial markets as information spreads rapidly across economies. However, such phases are not permanent.
"One lesson becomes clear: periods of extreme volatility don't last forever," Pandey added.
Highlighting structural shifts in global markets, Pandey pointed to economic fragmentation, changing trade corridors and the growing role of technology.
"Algorithmic trading, artificial intelligence and advanced data analytics are accelerating the speed at which markets operate," he said.
He also flagged the rapid spread of information as a potential risk.
"News travels quickly, opinions travel even faster, and most importantly, markets today react almost instantly to the narratives," Pandey said.
Policymakers must ensure speed does not compromise stability, according to the SEBI chief.
Looking ahead, the SEBI chief said the next phase of India's economic development will require deeper bond markets, stronger institutional participation and continued technological innovation.
Pandey also highlighted steps taken by SEBI to protect investors, including monitoring misleading social media content and strengthening surveillance systems such as PaRRVA to detect potential market manipulation and misinformation.
— IANS
Reader Comments
Good to know SEBI is monitoring social media for misinformation. So many 'finfluencers' give reckless advice for quick gains. Retail investors need protection from these narratives. Hope the surveillance is strong enough.
The point about deepening bond markets is crucial. For long-term infrastructure projects and stable growth, we need that depth. Our equity markets get attention, but debt markets are the backbone. Glad it's on the agenda.
While the sentiment is positive, I hope this resilience is tested with more transparency. The rapid spread of information is a double-edged sword. SEBI must ensure that "speed does not compromise stability" for the small investor who can't keep up.
Absolutely true about geopolitical tensions affecting us. The Middle East conflict shows how global we are now. But as Pandey sir says, such volatile phases don't last. SIP karte raho, bhai log! 💪
The focus on technological innovation like AI and algo trading is the future. But we need robust regulations to prevent flash crashes. Good to see SEBI is thinking ahead. India's market infrastructure is becoming world-class.
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