Sebi Chief Warns Investors Against Impulsive Trading Amid Market Volatility

Securities and Exchange Board of India (Sebi) Chairman: India's Capital Markets Deepening and Resilient

Market Overview India's capital markets are deepening and becoming increasingly resilient, even as global uncertainties cause volatility, according to Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (Sebi). Speaking at the Moneycontrol Global Wealth Summit 2026 in Mumbai, Pandey emphasized the importance of maintaining a long-term perspective while investing, especially during times of market volatility.

Market Trends The Indian stock market has been experiencing selling pressure over the last two weeks, triggered by the US-Iran conflict, which has led to global risk aversion and volatility. The key benchmark indices have remained almost flat for the last 18 months, resulting in zero returns for investors during this period.

Market Resilience Pandey noted that India's capital markets have become more resilient, expanding in scale, diversity, and strength. He highlighted the role of efficient markets in enabling transparent price discovery, absorbing shocks without destabilizing the broader financial system, and sustaining investor confidence.

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Volatility and Market Efficiency Pandey acknowledged that volatility is a natural feature of modern financial markets, particularly with the rapid flow of information and shocks spreading quickly across economies. However, he stressed that such phases are not permanent, and periods of extreme volatility do not last forever.

Changing Market Landscape The Sebi chairman pointed to the changes reshaping capital markets, including economic fragmentation, shifting trade corridors, and the growing role of technology. He noted that algorithmic trading, artificial intelligence, and advanced data analytics are accelerating market speed, and that the rapid flow of information poses a growing risk for markets.

Regulatory Measures Pandey highlighted the steps taken by Sebi to protect investors, including monitoring misleading social media content and strengthening surveillance systems such as the PaRRVA (Past Risk and Return Verification Agency) system, announced in December last year. The PaRRVA system is a tech-driven initiative aimed at bringing credibility and consistency to performance reporting through digital audit trails.

Future Market Outlook Pandey set the stage for what investors can expect going forward, stating that capital markets will play a bigger role as India continues its economic journey. He emphasized the need for deeper bond markets, stronger institutional participation, and continued technological innovation.

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