SEBI Chief Affirms India's Market Stability Amid Global Turbulence

Addressing concerns surrounding global market fluctuations, SEBI Chairman Tuhin Kanta Pandey stated that Indian capital markets have showcased comparative stability. Speaking to ANI, Pandey noted, "Volatility is there. But I must say that volatility in the Indian case is not as high as in some other jurisdictions, as the data would show."

Pandey acknowledged the challenges of the past year, attributing them to geopolitical tensions, cross-border capital flows, and fast-paced technological changes affecting global markets. "We face shocks daily. Today’s world is interconnected, and substantial capital flows in and out of the country are influenced by global developments," he remarked.

The SEBI chief stressed that a degree of volatility is inherent in financial markets, driven by real-time information flows and varying interpretations by market participants. He pointed out, "A certain amount of volatility is inherent in the functioning of markets because every piece of news, even small developments, impacts stock prices all the time."

Emphasizing India’s regulatory framework, Pandey highlighted the importance of transparency through mandatory reporting by listed companies. He noted that regulatory actions are initiated when disclosures are insufficient, with SEBI regulations mandating disclosures at various stages and enforcing actions as necessary for compliance.

Pandey also underscored the significant role capital markets play in economic growth, describing them as "an extremely important instrument." He stressed that enhanced investor trust, improved efficiency, and reduced market friction are crucial for creating a virtuous growth cycle aligning with India’s development aspirations.