Indian Equity Markets Show Stability Despite Global Challenges, According to Sebi Chairman Tuhin Kanta Pandey

Indian equity markets have shown resilience despite global instability, according to Sebi Chairman Tuhin Kanta Pandey. He noted that the volatility index VIX in India is currently below 14, similar to its level in September last year. This stability is unexpected given the current global turmoil, Pandey mentioned during his first press conference since taking office.

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Market Stability and Buyer Interest

Pandey highlighted that recent corrections in the market have sparked renewed buyer interest. This indicates a positive outlook for Indian markets amidst worldwide economic challenges. The stability of the VIX suggests that Indian markets are less volatile compared to global counterparts.

Independent Directors and Public Shareholding

Addressing corporate governance, Pandey stated that Sebi will urge the government to ensure listed companies appoint adequate independent directors. This is part of Sebi's ongoing efforts to enhance transparency and accountability in corporate India.

Pandey also discussed progress on minimum public shareholding requirements for state-run firms. Sebi plans to collaborate with government departments to reduce the number of companies not meeting these norms. This initiative aims to improve compliance and investor confidence in public sector enterprises.

Challenges with State-Run Firms

Pandey acknowledged that some state-run companies are struggling financially, which could deter potential buyers even if the government decides to sell stakes. This poses a challenge in achieving the desired level of public shareholding in these firms.

The focus remains on ensuring that Indian markets continue to attract investors by maintaining stability and adhering to regulatory norms. Sebi's efforts are geared towards fostering a robust financial environment that can withstand global pressures.

Overall, Pandey's remarks underscore a commitment to strengthening India's capital markets through strategic regulatory measures and government collaboration.