Indian markets are not vulnerable: Sebi chief Tuhin Kanta Pandey remains optimistic even as Sensex, Nifty bleed

While the stock market faces sharp swings amid soaring oil prices and bond yields since the onset of the Middle East conflict, Sebi Chairman Tuhin Kanta Pandey said Indian markets are not vulnerable despite the unprecedented global headwinds.

Speaking at the APMI Annual Conference, Pandey said the magnitude, concentration and unpredictability currently seen at the global level occur only once in a decade. He remained optimistic, however, saying India’s macroeconomic indicators have a solid foundation.

“From the view of the stock market, it may look very disadvantageous at the moment,” he said, noting that investors are increasingly turning their focus to AI. India, however, is developing rapidly in the area, according to the Sebi chief.


Not considering self-listing: Sebi chief

"We are not considering self-listing at this point. If it happens and when it happens, you'll come to know," he said.

"Bourses must satisfy themselves on details put by listed companies," said Pandey at an event in Mumbai.

IPO, bond market

India’s IPO market remained strong with a string of maiden public issues on the line despite the ongoing headwinds, Pandey said. Despite soaring bond yields, bond markets continue to raise funds. “It depends upon what kind of time horizon one has and whether one has the conviction of compounding and rising over the cycles,” he added.

Indian investors have been far more intelligent than what we estimate, as they are aware how these situations will pass, the Sebi chief said.

Also read | AI bubble to burst sooner than expected? Michael Burry believes it would take only one season of revenue disappointment

Sebi chief on PMS norms overhaul

Speaking at the APMI Annual Conference, Pandey said Portfolio Management Services (PMS) were becoming an important part of India's investment landscape, while outlining changes to the regulatory framework governing portfolio managers, ET Now reported.

The Sebi chief also noted that the market regulator is seeking greater transparency and disclosure in the investment management business. The latest overhaul of portfolio management norms kept accountability clear while opening up more possibilities for portfolio managers, he said, adding that they should focus on delivering to investors rather than making promises that cannot be matched.

This comes days after Sebi approved a significant overhaul of the regulatory framework governing PMS, allowing PMS managers to invest in IPO and primary market issuances in the debt market, ETF up to 1.25 times their clients’ AUM and more.

Speaking about the PMS industry, Sebi chief Tuhin Kanta Pandey on Wednesday said it has become an important part of India’s investment landscape, and the investment possibilities are widening for portfolio managers. Sebi is also introducing its concept for independent fund managers, and the latest norms keep accountability clear.

This comes while Dalal Street sees a sharp drop. Nifty 50 is one weekly close away from a milestone last seen around 25 years ago. After ending last week in the red for a seventh consecutive week, the benchmark index will record an eighth straight weekly loss if bulls fail to record a sharp recovery this week. That would make it the longest losing streak since 2001, when Nifty fell for nine consecutive weeks.

Also read | Nifty nears longest losing streak in 25 years. Can bulls stop the 8th consecutive weekly selloff?

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.