Indian markets resilient in uncertain times: Sebi chief

NEW DELHI: India's capital markets have remained resilient and recorded strong and sustained growth against the backdrop of geopolitical tensions, trade uncertainties, tariff barriers, the pandemic and emerging challenges such as AI, Securities and Exchange Board of India chairman (Sebi) Tuhin Kanta Pandey said on Friday.

"This shows the underlying strength of our market institutions and the growing confidence of investors. The nature of challenges may evolve but disruptions itself may remain constant. Therefore, we need resilient markets capable of navigating geo- fragmentation, technological risks and other emerging risks, while continuing to support growth and innovation," said Pandey while speaking at an event in Delhi.




Stating that technology is reshaping markets faster than any rulebook can, the Sebi chairman detailed the measures the regulator is rolling out such as stronger cybersecurity frameworks and improved data governance. "Algorithmic trading, AI-driven decision-making are now part of everyday market functioning. We have set up a high-level working group to develop a short-term and long-term strategic, regulatory roadmap for the securities market ecosystem. AI offers powerful tools for surveillance and fraud detection. But it also brings risks, opacity and bias and concentration of technological power."

"Regulation must therefore evolve from supervising institutions to supervising systems and technology. 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 household savings are increasingly finding their way into capital markets as public participation in capital markets is expanding at an unprecedented pace, while highlighting the recent developments undertaken by the Sebi for market regulation. "This shows the Indian household is no longer a peripheral participant. It is central to India's equity story. This means more responsibility for the regulator."