Amid a sustained market fall, Sebi chief Pandey urges investors “not to panic”

On the day when India’s benchmark indices slid nearly 3% intraday – hurt by crude oil which surged past $115 per barrel amid escalating geopolitical tensions in the Middle East – the markets regulator and Securities and Exchange Board of India chairman Tuhin Kanta Pandey urged investors “not to panic in this moment, but to remain calm amidst the storm.”

India’s benchmark Sensex index has fallen 8.95 percent or 7, 622 points in 2026. The rising oil prices have triggered fresh concerns of an out-of-control inflationary spiral and a widening import bill for India, prompting investors to rush for the exit and triggering broad-based selling across sectors. The Nifty 50 index closed at 24,028.05, down 422.40 points or 1.73%.

“We are also meeting at a time when global markets are experiencing turbulence and volatility arising from middle-east war - choking off vital shipping lines, triggering oil & gas supply and price shocks,” Pandey told a packed audience of corporates and market intermediaries, gathered at the National Stock Exchange to celebrate 30 years of the launch of the Nifty 50 index.

“Like rest of the globe, India too is deeply impacted by such developments. Yet, amid such uncertainties, India’s domestic fundamentals have continued to remain strong providing resilience. The Nifty itself has navigated several such phases in the past 30 years — periods of uncertainty, volatility and global shocks,” Pandey added.

The National Stock Exchange CEO Ashish Chauhan also allayed investor concerns. “The markets are at no risk. Margin payments are being paid in time, the filters are place and liquidity in the system is stable,” he told media on the sidelines of the event.

“Oil is the only real concern. This oil shock is causing panic. The markets could come back to normal once this crisis is over,” Chauhan said.

Speaking about the evolution of the Nifty 50 index, Pandey said the financial sector has expanded significantly, with its weight increasing from around 21% at the time of launch to about 38% as at end of Feb-2025.

India today has over 140 million unique investors, reflecting a steady shift of household savings toward capital markets. The market capitalisation of companies listed on NSE now exceeds 130 % of GDP, compared with around 35 percent in FY95. Individuals and domestic mutual funds together now hold about 36 % of the free-float market capitalisation of Nifty 50 companies.

Nifty 50 constituent companies, today account for around 44 % of the total market capitalisation of all listed companies - highlighting their significance in India’s corporate landscape. At the same time, derivative products based on the index have become

Explaining the market regulatory strengthening, Pandey said that they were strengthening their supervisory capabilities through internally developed tools such as Sebi Sudarshan - a real-time scanner for surveillance of unauthorized digital activity, and Sebi R(ai)dat - an AI-driven system for reviewing advertisements. “We are also deploying analytical tools to conduct sentiment analysis of corporate announcements. At the same time, exchanges and other market institutions must continue to invest in technology infrastructure, cyber resilience and advanced risk management systems.”