Stay patient amid geopolitical tensions, says SEBI chief Tuhin Kanta Pandey

Mumbai: As geopolitical tensions in the Middle East continue to disrupt energy supplies, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey asked investors to stay patient while asserting that the country’s capital markets are deepening and becoming increasingly resilient.

“Geopolitical tensions are shaping economic relationships. Conflict in the Middle East has massively disrupted energy supplies. Inevitably, capital markets have been severely impacted,” Pandey said.

Addressing the Moneycontrol Global Wealth Summit 2026 in Mumbai, Pandey said volatility has become a defining feature of modern financial markets, particularly as the information environment has evolved and shocks spread quickly across economies.

However, he urged retail investors not to react impulsively to short-term fluctuations.

“For retail investors, the best strategy would be to remain patient,” he said.

According to Pandey, episodes of extreme volatility are not new and markets have historically recovered after major global disruptions.

“One lesson becomes clear: periods of extreme volatility don’t last forever,” he said.

“The Indian capital markers 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 said.

According to the SEBI chief, efficient capital markets lay a stabilising role in an uncertain world.

“They enable transparent price discovery. They help absorb shocks without destabilising the broader financial system. And perhaps most importantly, they sustain investor confidence. Efficiency is the foundation of trust in the financial system. Without that, that for us, capital hesitates,” he said.

According to him, the environment in which Indian markets function is “evolving rapidly”.

“One important shift is economic fragmentation. Trade corridors are changing. Supply chains are being restructured and investment flows are responding to these steps. Another major transmission is driven by technology. Algorithmic trading, artificial intelligence, and advanced data analytics are accelerating the speed at which markets operate. Liquidity conditions are also becoming more episodic,” he said.

Pandey said global capital flows can move quickly across geographies. However, he said perhaps the most striking change is the velocity of information. "News travels quickly, opens travel even faster, and most importantly, markets today react almost instantly to the narratives. And therefore, the question before policymakers and market participants alike is. How do we ensure that speed does not compromise stability,” he said.

He also said liquidity conditions are becoming more episodic. “Global capital flows can move quickly across geographies. But perhaps the most striking change is the velocity of information. News travels quickly, opinions travel even faster, and most importantly, markets today react almost instantly to the narratives,” he said.

Pandey also said as India continues its economic journey, capital markets will play an even more important role. “The next phase of development will require deeper bond markets, stronger institutional participation and continued technological innovation,” said.

“Algorithmic trading, artificial intelligence and advanced data analytics are accelerating the speed at which markets operate,” Pandey said and added that liquidity conditions are also becoming more episodic as global capital flows move quickly across geographies.

Against this backdrop, policymakers face the challenge of ensuring that speed does not compromise stability in financial markets.

“The question before policymakers and market participants alike is how do we ensure that speed does not compromise stability,” he said.