Mumbai: “Periods of extreme volatility don’t last forever,” Tuhin Kanta Pandey, chairman, Securities and Exchange Board of India (SEBI), said on Saturday, in an effort to soothe frayed nerves of investors as markets continued to be battered by the conflict in the Middle East.
He urged retail investors not to react impulsively to short-term fluctuations as markets have historically recovered after major global disruptions. Geopolitical tensions, technological disruption and energy shocks are all contributing to uncertainty, Pandey said, while acknowledging the turbulence in the markets.
“Geopolitical tensions are shaping economic relationships. Conflict in the Middle East has massively disrupted energy supplies. Inevitably, capital markets have been severely impacted,” he said while speaking at the Moneycontrol Global Wealth Summit 2026 in Mumbai, as reported by The Indian Express.
“For retail investors, the best strategy would be to remain patient,” the SEBI chief said, noting that markets have historically recovered after major global disruptions.
Since the start of the conflict on February 28, Indian markets have fallen 9.3 per cent, wiping out lakhs of crores of investors’ wealth. Over the last few days, crude oil prices have remained above or around the $100 per barrel mark due to disruptions in supply.
The potential impact of such exorbitant crude prices on corporate earnings have caused jitters in the market.
According to Pandey, volatility has become a defining feature of modern financial markets, particularly as the information environment has evolved and shocks spread quickly across economies.
Such phases are not permanent, he stressed, adding: “One lesson becomes clear: periods of extreme volatility don’t last forever.”
Even as global headwinds create volatility, India’s capital markets are deepening and becoming increasingly resilient, he said.
“They are deepening, diversified and becoming increasingly resilient. But as markets grow in scale and complexity they also become more closely connected to global developments. And that brings us to the changing landscape in which today’s market operates,” Pandey said.
“They enable transparent price discovery. They help absorb shocks without destabilising the broader financial system. And perhaps most importantly, they sustain investor confidence. Efficiency is the foundation of trust in the financial system. Without that, capital hesitates,” the SEBI chief said, underlining the role of efficient markets.
Highlighting the structural changes reshaping modern capital markets, he pointed to economic fragmentation, shifting trade corridors and the growing role of technology.
“Algorithmic trading, artificial intelligence and advanced data analytics are accelerating the speed at which markets operate,” Pandey said.
“News travels quickly, opinions travel even faster, and most importantly, markets today react almost instantly to the narratives. And therefore, the question before policymakers and market participants alike is: how do we ensure that speed does not compromise stability,” he said, flagging the velocity of information as a key risk.
“The next phase of development will require deeper bond markets, stronger institutional participation and continued technological innovation,” he said, adding that capital markets will play an even more important role as India continues its economic journey.
Pandey highlighted steps taken by SEBI to protect investors, including monitoring misleading social media content and strengthening surveillance systems such as PaRRVA to detect potential market manipulation and misinformation.
