India’s capital markets have demonstrated resilience and sustained growth despite a series of global disruptions, Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey said on Friday. Speaking at an event in Delhi, Pandey said Indian markets have weathered geopolitical tensions, trade uncertainties, tariff barriers, the pandemic and emerging technological disruptions such as artificial intelligence.
“This reflects the underlying strength of our market institutions and the growing confidence of investors,” he said.
“While the nature of challenges may evolve, disruption itself may remain constant. We therefore need resilient markets capable of navigating geo-fragmentation, technological risks and other emerging threats, while continuing to support growth and innovation.”
Technology Reshaping Market Dynamics
Pandey highlighted that technology is transforming financial markets at a pace faster than traditional regulatory frameworks can adapt.
“Algorithmic trading and AI-driven decision-making are now part of everyday market functioning,” he noted.
To address this shift, Sebi has constituted a high-level working group to develop both short-term and long-term strategic regulatory roadmaps for the securities market ecosystem.
He said artificial intelligence offers significant advantages in areas such as surveillance and fraud detection, but also introduces risks including opacity, bias and concentration of technological power.
Regulation Must Evolve
According to Pandey, regulatory oversight must move beyond supervising institutions to overseeing systems and technologies.
“We must address concentration and interconnectedness risks, strengthen data governance and consent architecture, and manage the boundary between regulated finance and unregulated digital spaces,” he said.
Rising Household Participation
The Sebi chief also pointed to the growing participation of Indian households in capital markets.
“Household savings are increasingly flowing into capital markets. Public participation is expanding at an unprecedented pace,” he said, adding that retail investors are now central to India’s equity growth story.
“This places greater responsibility on the regulator,” Pandey said.
