SEBI chief Tuhin Kanta Pandey flags challenge of speed vs stability in rapidly evolving markets

Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey

With news spreading quickly, opinions even faster and markets reacting instantly to emerging narratives, Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey asked a central question: “How do we ensure speed doesn’t compromise stability?”

He was speaking at the second edition of the Global Wealth Summit 2026.

“Indian capital markets are expanding. They are deepening, diversified and becoming increasingly resilient. But as markets grow in scale and complexity they also become more closely connected to global developments,” he said.

According to him, the environment in which markets operate is undergoing rapid change. He highlighted economic fragmentation as a major factor, with shifting trade corridors, reconfigured supply chains and evolving investment flows.

Technology is also transforming markets, with algorithmic trading, AI and advanced data analytics increasing the speed of transactions and decision-making, he said.

The Sebi chairman further stated that liquidity conditions are turning more episodic, while global capital flows can shift quickly between geographies. “But perhaps the most striking change is the velocity of information. News travels quickly, opens travel even faster, and most importantly, markets today react almost instantly to the narratives. And therefore, the question before policymakers and market participants alike is. How do we ensure that speed does not compromise stability,” he asked.

'Volatility is a natural feature of markets'

The Sebi chief also said volatility is an inherent feature of financial markets and the real test lies in ensuring that markets continue to function fairly and efficiently during periods of stress.

“Volatility is a natural feature of markets, the real test is that markets will function fairly and efficiently even in periods of stress. Indian market will thrive,” Pandey said.

According to Pandey, geopolitical tensions are increasingly influencing economic relationships, while the ongoing conflict in the Middle East has disrupted energy supplies and created volatility in global oil and gas markets.

“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.