Bhubaneswar: SEBI chairman Tuhin Kanta Pandey on Monday said that volatility triggered by the ongoing West Asia crisis remains within manageable limits for Indian markets, which he described as resilient. He emphasized that the sooner the crisis is resolved, the better it is for the rest of the world, but noted that Indian markets have shown strength. Pandey added that the government is taking steps to cushion spillover effects.
Pandey was in the city for an investor awareness programme organized by the Association of Mutual Funds in India (AMFI). He also announced that SEBI will soon open an office in Bhubaneswar to enhance regulatory presence in the region.
Explaining market resilience, Pandey said that resilient markets are able to absorb different types of shocks and return to their normal trajectory. He acknowledged that ups and downs are natural, especially given the interconnectedness of global markets. When asked about comparisons between the West Asia conflict and the Covid-19 pandemic, Pandey refrained from making conjectures, stating that the impact depends on the duration of the crisis. He reiterated that markets have stayed resilient with some correction.
Highlighting investor behavior, Pandey noted that domestic investors have remained confident and continued disciplined investments despite some foreign portfolio investment (FPI) outflows since September 2024. He cited Odisha as an example, where the ratio of systematic investment plans (SIPs) is higher than the national average, indicating disciplined investing during corrections.
On emerging risks, Pandey said SEBI is working on guidelines for AI-driven trading. He described AI as both an opportunity and a risk, and noted that SEBI has issued advisories to protect the ecosystem and regulated entities from enhanced risks.
Pandey also pitched for municipal bonds, stating they would play a crucial role in urban development over the next two decades. He explained that globally, municipal bonds are key to funding civic infrastructure, and while the market in India is still nascent, it is growing. By the end of FY26, 22 urban local bodies have raised over Rs 4,500 crore through 31 issuances. He urged Odisha to tap this instrument, noting that states like Uttar Pradesh, Maharashtra, and Madhya Pradesh have already done so. He added that the central government offers incentives for such issuances.
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About the Author: Ashok Pradhan is currently chief of bureau The Times of India in Bhubaneswar. He is an alumnus of the Indian Institute of Mass Communication, Dhenkanal (1999-2000).
