Bhubaneswar, May 18 (H.S.): Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), said on Monday that although the ongoing crisis in West Asia has increased volatility in global financial markets, the Indian stock market remains capable of withstanding “various kinds of shocks.”

Speaking to reporters on the sidelines of a “Regional Investor Awareness Seminar” held in Bhubaneswar, Pandey stated that any crisis arising in one part of the world inevitably impacts other economies as well.

He said that the current tensions in West Asia have affected crude oil supply chains and prices, thereby increasing the risk of inflation at the global level.

Tuhin Kanta Pandey also announced that the market regulator would soon issue guidelines for AI-based trading. At the same time, he cautioned that Artificial Intelligence brings both opportunities and heightened cyber risks for the financial ecosystem.

He said SEBI is currently working on a regulatory framework to govern the growing use of AI in trading activities.

According to Pandey, global financial markets are deeply interconnected, making periods of volatility natural and unavoidable.

He further noted that the ongoing crisis in West Asia has significantly disrupted the supply of crude oil and gas through the Strait of Hormuz. This disruption, he warned, could create adverse supply-side conditions for the Indian economy.

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Hindusthan Samachar / Jun Sarkar