SEBI Chief Warns West Asia Tensions Disrupt Energy Flows; Trigger Price Volatility

Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), on Monday said escalating tensions in West Asia are disrupting global energy flows, putting pressure on oil and gas supplies, and driving sharp price volatility.

Speaking at the 19th CII Corporate Governance Summit, the Securities and Exchange Board of India chief warned that the ongoing conflict could have far-reaching implications for the global economy.

Tuhin Kanta Pandey said the current crisis adds to a series of disruptions faced by businesses and regulators in recent years, including the Covid-19 pandemic and rapid technological changes such as artificial intelligence, both of which have tested institutional resilience.

He highlighted that regulatory frameworks have evolved in a calibrated manner, with stronger disclosure norms through periodic and event-based requirements, clearer materiality thresholds and timelines, and enhanced board independence and oversight.

The Chairman of the Securities and Exchange Board of India added that accountability mechanisms, including secretarial audits and an expanded role for compliance officers, have further strengthened governance standards.

On corporate governance, Pandey said the emphasis must now shift from board composition to the quality of boardroom engagement and decision-making. He stressed the importance of independent directors and called for continuous capacity building through structured learning and stronger knowledge frameworks.

Tuhin Kanta Pandey also advocated moving from periodic reviews to continuous oversight, noting that institutional capability will be key to improving governance outcomes.

Meanwhile, Chandrajit Banerjee said the government and the Reserve Bank of India have responded swiftly to stabilise market sentiment. He pointed out that supply-side pressures in energy, logistics and trade persist, with MSMEs, exporters and energy-intensive sectors continuing to face operational and financial stress.

Banerjee added that the next phase of policy response may need to focus on liquidity support, credit facilitation, and foreign exchange stability.