Indian capital markets stable despite global volatility: SEBI Chief

SEBI Chairman Tuhin Kanta Pandey states Indian capital markets remain comparatively stable amid global turbulence. He acknowledges existing volatility but highlights it is lower than in other jurisdictions, citing India's strong regulatory framework.

Indian Markets Stable Amid Global Turbulence: SEBI Chief

Responding to concerns over global market turbulence, Tuhin Kanta Pandey, Chairman of Securities and Exchange Board of India (SEBI), said Indian capital markets have remained comparatively stable even as global uncertainties persist. "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 told ANI in an interview.

He acknowledged that the past year has been very challenging, citing geopolitical tensions, cross-border capital flows, and rapid technological shifts as key factors affecting markets worldwide. "We are facing shocks every day. Today's world is interconnected, and there are significant capital flows in and out of the country. These are impacted by global developments," he said.

Navigating Volatility and Ensuring Transparency

Pandey noted that some degree of volatility is intrinsic to financial markets, driven by real-time information flows and differing interpretations by market participants. "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," he said, adding that markets can sometimes "overreact" or "overcorrect."

The SEBI chief emphasised that India's disclosure-based regulatory framework and mandatory reporting requirements help maintain transparency in listed companies. He said regulatory action is taken when disclosures fall short, noting that SEBI regulations mandate disclosures "at different points in time under LODR," and that complaints also trigger enforcement where necessary.

Role of Capital Markets in National Growth

Highlighting the broader role of capital markets, Pandey said they are "an extremely important instrument" for economic growth, adding that stronger investor trust, improved efficiency, and reduced friction can create a virtuous cycle supporting India's development goals. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)