Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said that India’s capital markets are deepening and becoming increasingly resilient, even as global headwinds create volatility.
Speaking at the Global Wealth Summit, the SEBI chairperson urged retail investors not to react impulsively to short-term fluctuations.
“For retail investors, the best strategy would be to remain patient,” Pandey said, noting that markets have historically recovered after major global disruptions.
Indian market becoming resilient: Pandey
Pandey 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 said.
Underlining the role of efficient markets, he said: “They enable transparent price discovery. They help absorb shocks without destabilising the broader financial system. And perhaps most importantly, they sustain investor confidence. Efficiency is the foundation of trust in the financial system. Without that, capital hesitates.”
Volatility is natural
Acknowledging turbulence in global markets, Pandey said that geopolitical tensions, technological disruption, 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 added that volatility has become a defining feature of modern financial markets, particularly as the information environment has evolved and shocks spread quickly across economies. However, he stressed that such phases are not permanent: “One lesson becomes clear: periods of extreme volatility don’t last forever.”
What next for Indian market
Looking ahead, Pandey said capital markets will play an even more important role as India continues its economic journey. “The next phase of development will require deeper bond markets, stronger institutional participation, and continued technological innovation,” he said.
He also highlighted the steps SEBI has taken to protect investors, including monitoring misleading social media content and strengthening surveillance systems, such as PaRRVA, to detect potential market manipulation and misinformation.
