“The real test for the market is whether the system continues to function smoothly and efficiently when volatility comes,” he said.
Pandey noted that India’s capital markets have expanded significantly over the past decade. As markets grow, they become more connected to global developments, he said, adding that information now moves rapidly across markets.“News and opinions travel very fast and markets react instantly,” he said.
He also referred to the government’s notification of changes to the Securities Contracts (Regulation) Rules, saying the effort has been to make access to markets simpler.
Pandey added that efficient markets cannot be built on regulation alone. “Efficient markets are a shared responsibility,” he said.
He said capital markets are increasingly moving from supporting economic growth to shaping economic growth.
