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Image Credit: Bloomberg Quint

SEBI Sees No Systemic Risk Amid Trump Tariff Selloff

  • India’s Securities and Exchange Board (SEBI) believes that the stock market can handle the volatility caused by Trump’s trade war with minimal risk to the overall system.
  • SEBI chairman, Tuhin Kanta Pandey, assured investors that despite the volatility, abnormal pressure on margins and settlements is not observed.
  • The settlement system in India is considered unique, enabling trade clearing houses to settle trades on each other's stead without triggering a system-wide collapse.
  • Indian equities have performed better than other major markets since the announcement of aggressive levies on US imports, with India's Nifty 50 index down 2% compared to 9% for the MSCI Asia Pacific Index and 8% for the S&P 500.

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