SEBI Chief Reveals What Market Traders Should Be Concerned About Today; Check Here

According to the SEBI chief, the post-COVID era has led to significant shifts in global economic structures

SEBI Chairman Tuhin Kanta Pandey

Source : PTI

Newly appointed Securities and Exchange Board of India’s (SEBI) Chairman Tuhin Kanta Pandey has highlighted several risk factors that investors should remain cautious of in the current market environment, noting that global geopolitical and geoeconomic issues present increased challenges for market participants.

Speaking at a Business Today event during the session, Pandey outlined a complex risk landscape that goes beyond traditional market volatility.

"So far as the risk is concerned, I think there is a normal market risk. And, of course, there is a heightened risk on account of global, geopolitical and geoeconomic consideration," Pandey said, tracing the roots of current market uncertainties back to the COVID-19 pandemic.

According to the SEBI chief, the post-COVID era has led to significant shifts in global economic structures.

"If you see post COVID, a lot of realignment started taking place in terms of geoeconomic fragmentation. Supply chains did not work and then you had Ukraine crisis and you had Middle East Crisis as well," he explained.

The reshoring of supply chains has become a prominent trend, further complicated by the new US administration's stance on tariffs. Pandey cautioned that these factors would continue to influence global economic growth and trade dynamics.

"We are not really in a benign global environment," Pandey warned. "There will certainly be a problem on global growth and global trade."

Navigating Global Uncertainty

Despite these hurdles, Pandey highlighted that countries are taking active steps to address these issues. He pointed to India’s efforts to negotiate bilateral trade agreements with the United States and pursue free trade agreements with other nations as strategic measures to navigate global uncertainty.

Beyond geopolitical concerns, Pandey stressed the importance of fundamental risk management for investors, stressing the need for proper portfolio balancing. "You have to balance between the debt and the equity and so on," he advised.

The SEBI Chairman also expressed confidence in India's capital market infrastructure, calling it "one of the best in the world."

He shared his vision for SEBI's approach to market regulation, focused on the "four T's": trust, transparency, teamwork, and technology.