New Delhi [India], March 2 : 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 toldin 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.
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.
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.
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