Indian Markets Show Resilience Amid West Asian Turbulence: Sebi Chief Tuhin Kanta Pandey

Market Volatility Amid West Asia Conflict: Sebi Chairman Tuhin Kanta Pandey

The ongoing West Asia conflict has led to a significant increase in market volatility worldwide, but the Indian financial markets have shown resilience in absorbing different types of shocks. This was stated by Sebi Chairman Tuhin Kanta Pandey during a recent Regional Investors Seminar for Awareness.

Pandey explained that the conflict in West Asia has had a ripple effect on the global economy, impacting oil supply chains and prices, and resulting in inflationary risks. However, he noted that the Indian market has shown its ability to withstand such shocks and return to its normal trajectory once the crisis ends.

According to Pandey, the Indian market has seen some foreign portfolio investment outflows since September 2024, but domestic investors have retained their confidence. He attributed this stability to the market's ability to absorb shocks and its resilience in the face of global economic uncertainty.

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Pandey also addressed concerns regarding the use of AI tools in the financial markets, stating that most recent concerns are related to cybersecurity risks. He emphasized the importance of protecting software systems and ensuring that all deployed software, including third-party vendors, is well-protected against vulnerabilities.

To address these concerns, Sebi is implementing measures to ensure that the market, market ecosystem, and intermediaries are protected from cyber risks. Pandey also announced that Sebi will require 'finfluencers', who provide financial and stock-related advice, to register themselves with the market regulator.

Sebi has already removed 1.4 lakh pieces of content from various social media platforms that were deemed to be in violation of regulatory guidelines. The market regulator has also launched project 'Jagruk' to create awareness among people and promote investor education.

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Pandey also highlighted the importance of municipal bonds in city-level development, stating that they enable urban local bodies (ULBs) to raise long-term funds for essential projects such as water supply, sanitation, transport, and waste management. He specifically urged the state of Odisha to consider municipal bonds as a viable option for its development needs.

In addition to promoting investor education and awareness, Sebi is also expanding its presence across the country. Pandey announced that the market regulator will soon open an office in Bhubaneswar, further demonstrating its commitment to serving the needs of investors and market participants across India.