Mumbai (Maharashtra)

Tuhin Kanta Pandey, Chairman of Securities and Exchange Board of India (SEBI), on Saturday said India's capital markets are not only expanding but are also becoming deeper, more diversified and resilient despite global uncertainties.

Speaking at the Moneycontrol Global Wealth Summit 2026, Pandey said the country's capital markets have witnessed significant growth over the past decade, driven by rising investor participation, expanding market capitalisation and a rapidly growing alternative investment ecosystem.

"India's capital markets are no longer merely expanding. They are deepening, diversifying and becoming increasingly resilient," Pandey said while addressing the summit on the theme "Making Capital Markets More Efficient in Uncertain Times."

He further noted that "since FY15 our market capitalisation has grown at a CAGR of about 15 per cent. The corporate bond market has expanded steadily at a CAGR of around 12 per cent. The primary market has remained an important channel for capital formation, facilitating around Rs 9.7 trillion of capital raising annually."

He also pointed out that investor participation in the securities market has surged significantly over the past decade.

"The number of unique investors in the securities market has grown at roughly 21 per cent CAGR, indicating a broadening investor base and rising household participation," he said.

He further advised investors to stay patient as geopolitical tensions, technological disruption and energy shocks create volatility across global financial markets.

SEBI Chairman said the current global economic environment is defined by uncertainty, but stressed that markets have historically stabilised after periods of disruption.

"If there is one word to describe markets today, it is uncertainty," Pandey said.

He noted that geopolitical tensions and conflicts are reshaping economic relationships and influencing capital flows worldwide.

"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.

Pandey further noted that volatility has become a defining feature of modern financial markets, particularly as the information environment has evolved and shocks spread quickly across economies.

However, he urged retail investors not to react impulsively to short-term fluctuations.

"For retail investors, the best strategy would be to remain patient," he said.

According to Pandey, episodes of extreme volatility are not new and markets have historically recovered after major global disruptions.

"One lesson becomes clear: periods of extreme volatility don't last forever," he said.

He pointed to past shocks such as the Covid-19 pandemic and the Russia-Ukraine conflict, noting that markets initially experienced turbulence but eventually stabilised.

"In the past we have witnessed disruptions caused by Covid-19 and the Russia-Ukraine conflict. Markets witness turbulence but they eventually stabilise," he said.

Pandey said that volatility itself should not be viewed as a sign of market weakness.

Instead, he argued that the true test of a market lies in how efficiently it functions during periods of stress.

"Can markets remain efficient when uncertainty itself becomes the norm?" he asked.

"The real test of a market is not whether volatility appears, but whether the system runs smoothly and efficiently when it appears."

Pandey also highlighted how structural shifts in the global economy are influencing markets.

He said rapid technological change, particularly the rise of artificial intelligence, is reshaping industries and business models across sectors.

At the same time, geopolitical tensions, including the ongoing conflict in the Middle East, are influencing trade, energy supplies and economic relationships worldwide.

"Technological change, particularly the rise of artificial intelligence, is reshaping industries and business models across the spectrum," he said.

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Talking about the mutual funds, he added that the mutual fund industry's assets under management have expanded at over 20 per cent CAGR, reflecting growing investor participation.

Pandey said these trends indicate that India's capital markets are deepening and becoming increasingly resilient even amid global volatility.