Market Volatility Won't Last Forever: SEBI Chief
Amidst the chaos in global markets triggered by the ongoing conflict in the Middle East, the Chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, has sought to calm investors' frayed nerves. Speaking at the Moneycontrol Global Wealth Summit 2026 in Mumbai, he emphasized that periods of extreme volatility do not last forever. His message is particularly relevant for retail investors, who are often tempted to react impulsively to short-term market fluctuations.
Pandey pointed out that the current market turbulence is influenced by geopolitical tensions, technological disruptions, and energy shocks. The conflict in the Middle East has severely impacted energy supplies, leading to a significant decline in the Indian markets, which have fallen by 9.3% since February 27. This sudden drop has wiped out vast amounts of investor wealth, with crude oil prices hovering around $100 per barrel, causing widespread concern about the effects on corporate earnings.
He urged investors to adopt a patient strategy, reaffirming that markets have historically shown resilience and recovered from major global disruptions. As the landscape of capital markets evolves, Pandey noted that this volatility has become a defining characteristic of modern financial systems, which are influenced by rapid information flow and interconnectedness with global events.
Pandey highlighted the need for efficient markets that facilitate transparent price discovery and can absorb shocks without destabilizing the broader financial system. He emphasized that investor confidence hinges on the efficiency and trustworthiness of financial markets. Without this foundation, capital tends to hesitate, which can hamper economic growth.
Furthermore, he discussed the structural changes reshaping capital markets, such as economic fragmentation and the increasing role of technology. The rise of algorithmic trading and artificial intelligence is accelerating market operations, while the rapid dissemination of news can lead to swift market reactions, posing risks that need careful management by policymakers and market participants.
As India progresses on its economic journey, Pandey stressed that capital markets will play a crucial role. He called for deeper bond markets and stronger institutional participation, along with ongoing technological innovation. SEBI is also actively working to protect investors by monitoring misleading content on social media and enhancing surveillance systems to tackle potential market manipulation and misinformation.
