India’s capital markets have continued to demonstrate resilience despite facing a series of global and domestic challenges, with strong domestic investor participation helping absorb external shocks and sustain capital formation, SEBI Chairman Tuhin Kanta Pandey said on Friday.
Speaking at the ET Now Markets Summit 2026, Pandey said Indian markets have navigated an exceptionally challenging environment over the past few years, including geopolitical tensions, tariff uncertainties, energy price shocks, supply chain disruptions, AI-led technological changes and foreign portfolio investor outflows.
Created with AI. Errors are possibleAccording to the SEBI Chairman, India’s capital markets helped raise more than Rs 1.5 lakh crore during April and May of the current financial year, underlining continued investor confidence despite heightened volatility across global markets.
Of the total funds raised, around Rs 70,000 crore came through equity issuances while nearly Rs 86,000 crore was mobilised through corporate bonds.
While primary market activity has moderated in recent months, Pandey said the pipeline for new listings remains healthy. “The IPO pipeline of around Rs 1.5 lakh crore remains robust for the coming months,” he said.
Pandey also highlighted the growing role of domestic investors in supporting market stability during periods of global uncertainty.
Systematic Investment Plan (SIP) assets now account for nearly 20-21% of the mutual fund industry’s total assets as of May-end 2026. More importantly, the SIP stoppage ratio declined to 95% after remaining above 100% for two consecutive months.
“In simple terms, new SIP registrations once again exceeded SIPs that were stopped or completed. This is an encouraging signal. Even in volatile markets, investors continue to follow a long-term investment approach,” he said.
The SEBI chief noted that while India remains open to global capital flows, the market today is significantly better positioned because of its stronger domestic investor base.
“India will continue to welcome global capital. At the same time, our market now has a stronger domestic base, which provides support even when external sentiment may have weakened,” he said.
Pandey said volatility is likely to remain a feature of global financial markets given ongoing geopolitical tensions, energy market disruptions and rapid technological changes. However, the focus should be on ensuring that markets remain orderly and continue to command investor confidence.
“Markets may be volatile, but they must not be disorderly. Volatility must not damage investor trust,” he said.
He added that resilient markets require strong institutions, robust infrastructure and effective regulation that balances innovation with investor protection.
According to Pandey, India’s market ecosystem has continued to strengthen through reforms aimed at improving efficiency, reducing risks and enhancing investor confidence, helping the country navigate an increasingly uncertain global environment while continuing to support economic growth and capital formation.
