Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Monday urged investors to remain calm and avoid panic-driven decisions amid heightened global volatility triggered by the escalating conflict in the Middle East.
Speaking on the impact of the Iran war on financial markets, the SEBI chief said global markets are currently facing turbulence as geopolitical tensions disrupt energy supplies, trade flows and investor sentiment.
“Investors should remain calm and avoid panic reactions,” the SEBI chairperson said, emphasising that while India is affected by global developments, the country's domestic economic fundamentals remain strong.
The ongoing conflict has disruptted shipping routes in key maritime corridors, choking global trade flows and increasing uncertainty in financial markets. Rising crude oil prices and supply chain disruptions have also added to global inflation concerns.
Despite these external headwinds, the SEBI chief noted that India's strong domestic economy continues to provide resilience.
Nifty's Journey Mirrors India's Growth
Reflecting on the evolution of India's capital markets, the SEBI chairperson highlighted the 30-year journey of the Nifty 50 index, describing it as a key benchmark for investors and a vital reference point for market participants.
According to the regulator, the evolution of the Nifty is closely linked to India's broader economic growth story, reflecting the country's expanding corporate sector and rising capital market participation.
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Over the years, the ecosystem comprising stock exchanges, clearing corporations and depositories has deepened significantly, strengthening the foundations of India's financial markets.
He also noted that the broader Indian market ecosystem has witnessed remarkable growth over the years, supported by robust institutions and increasing investor participation.
Technology Driving Market Oversight
Technology is increasingly playing a central role in both market operations and regulation, the SEBI chief said.
The regulator has formed an expert group to develop a technology roadmap for the securities market, recognising the growing importance of digital infrastructure in modern financial systems.
SEBI has already deployed several advanced technology tools to strengthen market surveillance. Its “Sudarshan” platform enables real-time monitoring of digital market activity, while the “SEBI Radar” system uses artificial intelligence to analyse advertisements and identify potentially misleading content.
The regulator is also using sentiment analysis tools to monitor corporate announcements and detect unusual patterns that may impact investors.
Strengthening Governance Across Market Institutions
The SEBI chairperson also highlighted ongoing governance reforms aimed at strengthening market infrastructure institutions (MIIs), including exchanges, clearing corporations and depositories.
Surveillance, settlement and risk management systems have improved significantly over the years, helping ensure market stability even during periods of global volatility.
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To enhance accountability, SEBI has introduced external independent performance reviews for MIIs and strengthened oversight of statutory committees. Governance guidelines have also been tightened to improve board oversight and ensure that boards move beyond ceremonial roles to active stewardship.
The regulator's broader objective, the SEBI chief said, is to enable innovation while safeguarding market integrity and investor confidence as India's capital markets continue to expand.
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