Periods of extreme volatility don't last forever: SEBI Chair Tuhin Kanta Pandey amid Middle East conflict

Pandey stressed that the resilience of markets is tested during periods of extreme uncertainty, but efficiency and transparency allow them to recover.

Periods of extreme volatility don’t last forever, said Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI) on Saturday, highlighting the resilience of financial markets amid global uncertainty.

Speaking at the second edition of Moneycontrol's Global Wealth Summit 2026, Pandey said the true test of markets is not whether volatility occurs, but whether systems continue to operate smoothly and efficiently when turbulence strikes. "Efficient markets play a stabilising role in an uncertain world. Efficiency is the foundation of trust," Pandey stated.

Pandey noted that uncertainty is now a recurring feature of global markets. "If there is one word to describe markets today, it is uncertainty," he said, pointing to technological disruption, including the rapid adoption of artificial intelligence, alongside geopolitical tensions, particularly in the Middle East.

"One lesson becomes clear: periods of extreme volatility don’t last forever,: said the SEBI Chair.

The conflict in the Gulf has sharply disrupted energy supplies, pushing Brent crude above $100 a barrel and sending ripples through oil and gas markets worldwide. "The volatility in energy markets has affected capital markets across the world, creating a complex environment for investors," Pandey noted.

He added that while markets are experiencing turbulence, they have historically stabilised after shocks. "Markets witness turbulence, but they eventually stabilise," he said, citing previous disruptions such as the Covid-19 pandemic and the Russia-Ukraine conflict.

Pandey highlighted that modern markets now operate in a much more complex information environment. Rapid news cycles, algorithm-driven trading, and energy price swings have amplified short-term volatility, but robust systems and regulatory oversight help contain shocks.

"The best strategy is to remain patient. Global efforts are underway to restore stability," he said.

Pandey stressed that the resilience of markets is tested during periods of extreme uncertainty, but efficiency and transparency allow them to recover.