SEBI warns of financial market risks due to increasing interconnectedness
What happened
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.
From thehindu.com
Why it matters
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.
From thehindu.com
Who's involved
- State Bank of IndiaHost of the conference where the discussion on financial interconnectedness took place.
- Securities and Exchange Board of IndiaThe body whose chairperson issued warnings regarding financial market risks.
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The entities involved
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State Bank of India
Indian public sector bank and financial services organization
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Securities and Exchange Board of India
registration authority
Related events
- Indian economy relies on large financial institutions.
- Major Indian banks, including SBI, Bank of Baroda, and New India Assurance, hold significant institutional stakes in the National Stock Exchange.
- The Securities and Exchange Board of India and the Reserve Bank of India discussed the future of the corporate bond market.
- The Securities and Exchange Board of India regulates the securities market specifically for infrastructure financing.
- Bank of Baroda, Union Bank of India, and State Bank of India are competing in the state-run banking sector and conducting bond issuances through Dubai.