New Delhi, March 14: Tuhin Kanta Pandey, the chairman of the Securities and Exchange Board of India (SEBI), stated on Saturday that despite global instability, India’s capital markets are becoming increasingly robust and diverse.
Speaking at a media event in the national capital, Pandey advised retail investors to refrain from reacting hastily to short-term market fluctuations. “The best strategy for retail investors is to maintain patience,” he emphasized. He also noted that historically, markets tend to recover after significant global crises.
Pandey highlighted the rapid growth of India’s capital markets in terms of size, diversity, and strength. “Our markets are continuously becoming deeper and more varied, and their resilience is also increasing. However, as the size and complexity of the markets grow, they become more susceptible to global events,” he explained.
Acknowledging the volatility in global markets, he pointed out that geopolitical tensions, technological changes, and energy crises contribute to uncertainty. “Geopolitical tensions are shaping economic relations. Conflicts in the Middle East have severely impacted energy supply,” he remarked.
He further stated that the ongoing conflicts in the Middle East have significantly affected energy supply, which in turn impacts global capital markets. According to Pandey, a notable characteristic of today’s financial markets is increased volatility, as information and news spread rapidly worldwide. However, he assured that such periods of instability are not permanent.
“One thing is clear: periods of extreme volatility do not last forever,” he said. Discussing structural changes in global markets, the SEBI chief noted that economic divisions, changing trade routes, and the growing role of technology are rapidly transforming markets.
He explained that algorithmic trading, artificial intelligence, and advanced data analytics are making markets operate faster than ever before. Pandey also mentioned that information spreads quickly today, and opinions spread even faster, causing markets to react immediately to news and narratives.
He stressed the importance for policymakers to ensure that market growth is accompanied by stability. Looking ahead, the SEBI chief stated that a strong bond market, greater participation from institutional investors, and technological innovation will be essential for the next phase of India’s economic development.
He also indicated that SEBI is taking several measures to protect investors, including monitoring misleading information on social media and strengthening surveillance systems like PARRVAA to detect potential market manipulation and misinformation.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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