While the geopolitical tensions in Western Asia continue to disrupt power supply, the Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has asked investors to remain patient, while asserting that the country’s capital MArKets they are deepening and becoming more and more elastic.
“Geopolitical tensions are shaping economic relations Middle East has massively disrupted the power supply. Inevitably, capital markets have been severely affected,” Pandey said.
Addressing the Moneycontrol Global Wealth Summit 2026 here recently, Pandey said volatility has become a defining feature of modern financial markets, especially as the information environment has evolved and shocks have spread rapidly across economies.
However, he urged retail investors not to react impulsively to short-term fluctuations. “For retail investorsthe best strategy would be to remain patient,” he reiterated.
According to Pandey, episodes of extreme instability are not new and markets have historically recovered from major global disruptions.
“One lesson becomes clear: periods of extreme volatility don’t last forever,” he said.
“Indian equity traders are deepening, diversifying and becoming increasingly resilient. But as markets grow in scale and complexity, they also become more connected to global developments. And that brings us to the changing landscape in which the market operates today,” he added.
According to the Sebi chief, efficient capital markets play a stabilizing role in an uncertain world. “They enable transparent price discovery. They help absorb shocks without destabilizing the broader financial system. And perhaps most importantly, they support investor confidence. Efficiency is the foundation of confidence in the financial system. Without that, for us, capital hesitates,” he said.
According to Pandey, the environment in which Indian markets operate is “rapidly evolving”.
“An important change 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 added that global capital flows can move quickly across geographies. However, he pointed out that perhaps the most striking difference is the speed of information.
“News travels fast, travels even faster, and most importantly, markets today react almost immediately to narratives. Therefore, the question for policymakers and market participants is ‘How can we ensure that speed does not compromise stability,'” he said.
Pandey mentioned that 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 technology NEW“, he added.
Despite all this, policymakers face the challenge of ensuring that speed does not jeopardize stability in financial markets. “The question for policymakers and market participants is how to ensure that speed does not jeopardize stability,” he concluded.
