India’s Capital Markets Deepening & More Resilient Amid Global Volatility, Retail Investors Should Stay Patient: SEBI Chairman

New Delhi: The Securities and Exchange Board of India (SEBI) 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 a 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.

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