Bhubaneswar: SEBI chairman Tuhin Kanta Pandey on Monday said volatility triggered by the ongoing West Asia crisis remains within manageable limits for Indian markets, which he described as “resilient”.“The sooner the crisis is resolved, the better for the rest of the world. However, I can say that Indian markets have remained quite resilient. Volatility has increased but it is not beyond what markets can handle,” Pandey told media persons, adding that the govt is taking steps to cushion spillover effects.Pandey was in the city for an investor awareness programme organised by the Association of Mutual Funds in India (AMFI). He also announced that SEBI will soon open an office in Bhubaneswar.He said resilient markets are able to absorb different types of shocks and return to their normal trajectory. “Ups and downs are natural, especially as global markets are interconnected. Developments in one part of the world impact others,” he said.On comparisons between the West Asia conflict and the Covid-19 pandemic, Pandey said it would not be right to make any conjecture on that. “The impact depends on the duration of the crisis. For now, markets have stayed resilient, with some correction,” he said.Highlighting investor behaviour, he said domestic investors have remained confident and continued disciplined investments even as there were some FPI (foreign portfolio investment) outflows from Sept 2024. Giving the example of Odisha, he said the ratio of systematic investment plans (SIPs) by Odisha investors is higher compared to the national average, which means people in a disciplined manner have continued investing in time of corrections.On emerging risks, Pandey said SEBI is working on guidelines for AI-driven trading. “AI is both an opportunity and a risk. We have issued advisories to protect the ecosystem and regulated entities from enhanced risks,” he added.Pitching for municipal bonds, Pandey said they would play a crucial role in urban development over the next two decades. “Globally, municipal bonds are key to funding civic infrastructure. In India, the market is still nascent but growing. By end-FY26, 22 urban local bodies have raised over Rs 4,500 crore through 31 issuances,” he said.He urged Odisha to tap the instrument. “Several states like Uttar Pradesh, Maharashtra and Madhya Pradesh have already done so. Odisha should also move quickly, especially as the Centre offers incentives for such issuances,” Pandey said.
