Sebi Chairman Tuhin Kanta Pandey has highlighted several key risk factors that investors need to be aware of in the current market climate, emphasizing that global geopolitical and geoeconomic challenges are creating significant headwinds for market participants.
Speaking at the Business Today MindRush 2025 event during the session “Capital Markets, Risks, Rewards, Resilience,” Pandey discussed the complex risk environment, noting that it goes beyond typical market volatility. “In terms of risk, there’s the usual market risk, but there’s also an increased risk due to global geopolitical and geoeconomic factors,” Pandey said, tracing the roots of the current market uncertainties back to the COVID-19 pandemic.
According to Pandey, the post-COVID period has led to major shifts in global economic dynamics. “Post-COVID, we’ve seen significant realignments, particularly in terms of geoeconomic fragmentation. Supply chains faltered, and we had the Ukraine crisis and Middle East tensions,” he explained.
A key trend, according to Pandey, is the reshoring of supply chains, with additional complexities arising from the new U.S. administration’s stance on tariffs. He cautioned that these factors will continue to influence global economic growth and trade. “We are not in a favorable global environment,” Pandey warned. “Global growth and trade will certainly face challenges.”
Despite these difficulties, Pandey pointed out that countries are taking steps to address these issues. He highlighted India’s efforts to negotiate bilateral trade deals with the United States and pursue free trade agreements with other countries as proactive responses to the global uncertainties.
Beyond geopolitical risks, Pandey stressed the importance of sound fundamental risk management for investors, such as ensuring proper portfolio diversification. “You need to maintain a balance between debt and equity, and so on,” he advised.
Pandey expressed confidence in India’s capital market infrastructure, calling it “one of the best in the world.”
He also outlined Sebi’s approach to market regulation, centered on the “four T’s”: trust, transparency, teamwork, and technology.
