SEBI Chairman Tuhin Kanta Pandey declared on Monday that Indian markets have demonstrated remarkable resilience amid the ongoing West Asia crisis. According to reports from The Times of India, Pandey stated that while volatility has increased, it remains within manageable limits for the Indian financial markets. The SEBI chief emphasized that the government is actively taking steps to cushion any spillover effects from the regional conflict.
As reported by The Times of India, Pandey noted that the sooner the West Asia crisis is resolved, the better it will be for global markets. However, he emphasized that Indian markets have maintained their resilience throughout the current period of uncertainty. The SEBI chairman explained that resilient markets are capable of absorbing different types of shocks and returning to their normal trajectory, even during periods of global market interconnectedness. According to Outlook Business, Pandey told reporters at the Regional Investors Seminar for Awareness that "the advantages of a resilient Indian market are that it is able to absorb different types of shocks, and when these end, the market again resumes its normal trajectory."
According to The Times of India, Pandey acknowledged that ups and downs are natural in global markets, particularly given their interconnected nature. He explained that developments in one part of the world inevitably impact other markets, making volatility a normal aspect of international financial systems. As reported by Outlook Business, Pandey explained that "when there is a crisis in one part of the world, it also impacts the rest of the globe. Due to the prevailing conflict in West Asia, the oil supply chain and its prices got affected in the rest of the world. All the economies have been affected by this and obviously, there are inflationary risks. Besides, spillover effect and second-order effect will also come in."
When asked about foreign portfolio investment trends, Pandey admitted that there have been some foreign portfolio investment outflows since September 2024, but domestic investors have "retained their confidence." According to Outlook Business, the SEBI chairman noted that "Ups and downs in the market are quite natural because globally they are interconnected." His comments came during an investor awareness programme organized by the Association of Mutual Funds in India (AMFI), where he also announced SEBI's plans to open an office in Bhubaneswar.
Addressing threats from AI tools, Pandey emphasized that most recent concerns are related to cybersecurity, as markets rely heavily on software systems. As reported by Outlook Business, he stated that "If cybersecurity is threatened or vulnerabilities are found in the software, there is a risk of attacks. If such attacks are successful, they can pose a serious threat to market integrity." The SEBI chief outlined proactive measures including aggressive patch management and extensive use of conventional tools to identify vulnerabilities. He confirmed that SEBI is using mechanisms to ensure the market, market ecosystem, and intermediaries are protected from cyber risks, while also addressing the growing influence of 'finfluencers' who provide financial advice.
Pandey announced the launch of project 'Jagruk' to enhance investor awareness, describing it as a "360 degree; multilingual, multi-agency and multimedia" initiative. According to Outlook Business, he also highlighted the importance of municipal bonds for city-level development, enabling urban local bodies to raise long-term funds for essential projects including water supply, sanitation, transport and waste management. "Odisha should look at municipal bonds immediately," he stated, while confirming that SEBI will open its office in Bhubaneswar soon.
