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Tuhin Kanta Pandey says the current global economic environment is marked by deep uncertainty, but emphasised that markets have historically stabilised after periods of disruption.
Sebi Chairman Tuhin Kanta Pandey.
India’s capital markets regulator has urged investors to remain patient as geopolitical tensions, technological disruption and energy shocks trigger volatility across global financial markets.
Speaking at Moneycontrol’s Global Wealth Summit, Sebi Chairman Tuhin Kanta Pandey said the current global economic environment is marked by deep uncertainty, but emphasised that markets have historically stabilised after periods of disruption.
“If there is one word to describe markets today, it is uncertainty,” Pandey said.
Geopolitical tensions reshaping markets
Pandey noted that geopolitical conflicts are increasingly influencing economic relationships, global trade flows and capital movements.
He said the ongoing conflict in the Middle East has disrupted energy supplies and created ripple effects across global markets.
“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.
Retail investors should avoid impulsive reactions
The Sebi chief said volatility has become a defining feature of modern financial markets, particularly as information now spreads rapidly and shocks are transmitted quickly across economies.
However, he cautioned retail investors against reacting impulsively to short-term market swings.
“For retail investors, the best strategy would be to remain patient,” he said.
According to Pandey, episodes of extreme market volatility are not unusual and have historically been followed by periods of recovery.
“One lesson becomes clear: periods of extreme volatility don’t last forever,” he said.
He cited past global disruptions such as the Covid-19 pandemic and the Russia-Ukraine conflict, noting that markets experienced turbulence initially but eventually stabilised.
“In the past we have witnessed disruptions caused by Covid-19 and the Russia-Ukraine conflict. Markets witness turbulence but they eventually stabilise,” he said.
Volatility tests the strength of markets
Pandey said volatility itself should not be viewed as a sign of weakness in financial markets.
Instead, he argued that the real test lies in whether markets continue to function efficiently during periods of stress.
“Can markets remain efficient when uncertainty itself becomes the norm?” he asked. “The real test of a market is not whether volatility appears, but whether the system runs smoothly and efficiently when it appears.”
AI disruption and global shifts influencing markets
Pandey also highlighted the structural changes underway in the global economy, particularly the rapid rise of artificial intelligence.
He said technological disruption is reshaping industries and business models across sectors, while geopolitical tensions continue to influence trade, energy supply chains and global economic relationships.
“Technological change, particularly the rise of artificial intelligence, is reshaping industries and business models across the spectrum,” he said.
India’s capital markets have deepened
Despite global uncertainty, Pandey said India’s capital markets have become significantly stronger over the past decade.
He noted that the country’s market ecosystem has expanded and become more resilient as investor participation has increased.
“India’s capital markets have expanded significantly over the last decade,” he said.
According to Pandey, since FY15, India’s markets have grown at a compound annual growth rate (CAGR) of about 15 per cent, while the corporate bond market has expanded at around 12 per cent CAGR.
He added that the mutual fund industry’s assets under management have grown at more than 20 per cent CAGR, reflecting a steady rise in investor participation and the deepening of the country’s capital markets.
March 14, 2026, 12:10 IST
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