SEBI warns of financial market risks due to increasing interconnectedness

SEBI Chairperson Tuhin Kanta Pandey spoke at a conference organized by the State Bank of India in Mumbai on September 23, 2026. Pandey cautioned that capital flows are increasingly blurring the lines between various financial markets. He noted that the traditional boundaries separating banks, insurers, and capital markets are becoming less distinct.

Pandey stated that mutual funds and insurers invest in securities issued by banks and corporations, leading to growing financial interconnectedness. He stressed that risks emerging in one financial segment could quickly spill over into others, requiring greater collaboration among regulators and market participants.