Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey has cautioned retail investors against impulsive trading, urging them to maintain a long-term perspective amid rising volatility in financial markets.
Speaking at the second edition of the Moneycontrol Global Wealth Summit 2026 in Mumbai on March 14, Pandey said India’s capital markets are becoming deeper and more resilient even as global uncertainties trigger short-term fluctuations.
He advised retail investors not to react to temporary market movements. According to him, patience and a long-term investment approach remain the most effective strategies for navigating volatile periods.
His comments come at a time when Indian equities have faced sustained selling pressure over the past two weeks following escalating tensions between the United States and Iran. The conflict has heightened global risk aversion and increased volatility across financial markets.
At the same time, benchmark indices in India have largely moved sideways for nearly 18 months, meaning many investors have seen little or no portfolio gains during this period.
Pandey said India’s capital markets are expanding in scale, diversity and strength. As markets grow larger and more sophisticated, they are also becoming more closely linked to global developments.
He emphasised that efficient markets are essential for maintaining investor confidence. Transparent price discovery, he said, allows markets to absorb shocks without destabilising the broader financial system.
Efficiency, he added, forms the foundation of trust in the financial system and ensures that capital continues to flow.
Pandey acknowledged that geopolitical tensions, technological disruption and energy supply shocks are currently shaping the global investment landscape. Conflicts in the Middle East, in particular, have disrupted energy markets and affected investor sentiment worldwide.
However, he stressed that volatility has become a normal feature of modern financial markets as information now spreads rapidly across economies.
Despite this, he said such periods of extreme volatility are usually temporary and markets have historically recovered from major disruptions.
Pandey also highlighted how technological change is transforming capital markets. Advances in algorithmic trading, artificial intelligence and data analytics are accelerating the speed at which markets operate.
At the same time, the rapid flow of information — especially through social media — can amplify market reactions. News spreads quickly, he noted, but opinions and narratives often travel even faster, influencing investor behaviour and market movements.
Looking ahead, Pandey said capital markets will play an increasingly important role in India’s economic growth. The next phase of development, he noted, will require deeper bond markets, stronger institutional participation and continued technological innovation.
He also pointed to steps taken by Sebi to protect investors, including monitoring misleading social media content and strengthening surveillance systems such as the Past Risk and Return Verification Agency (PaRRVA), a technology-driven initiative aimed at improving the credibility of performance reporting and detecting potential market manipulation.