AI Boom Driving Shift In Global Market Valuations, Says SEBI Chief

The rally in artificial intelligence-related stocks is reshaping global equity market valuations and influencing capital allocation across countries, Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey said on Tuesday.

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Speaking on the sidelines of the CareEdge Debt Market Summit 2026, Pandey said companies linked directly or indirectly to artificial intelligence are currently attracting strong investor interest globally.

He said businesses involved in AI investments, semiconductor manufacturing, memory chips and related electronic infrastructure are witnessing higher valuations as global capital flows increasingly move toward technology-driven sectors.

According to Pandey, the sharp rise in valuations of AI and semiconductor companies in certain markets is also changing the relative positioning of global equity markets.

Taiwan’s Market Gains Linked To Semiconductor Stocks

Commenting on Taiwan overtaking India in market capitalisation, Pandey said the structure of the two markets is significantly different.

He noted that India has a highly diversified equity market, while Taiwan’s market is relatively concentrated around a few large technology and semiconductor companies.

Pandey referred to Taiwan Semiconductor Manufacturing Company (TSMC) and other firms that play a major role in the global electronics supply chain, stating that these companies have attracted substantial foreign investment flows, leading to higher valuations.

Taiwan’s equity market has benefited from the global surge in demand for semiconductor and AI infrastructure companies as investors increase exposure to sectors linked to artificial intelligence growth.

SEBI Working On Bond Tokenisation Pilot

Pandey also said SEBI is exploring a pilot project for tokenisation of corporate bonds using distributed ledger technology (DLT).

He stated that the proposed framework could take six to nine months to become operational.

The initiative is aimed at examining the use of blockchain-based systems in debt market infrastructure and settlement mechanisms.

SEBI has been evaluating technology-driven reforms in market operations as part of broader efforts to strengthen transparency and efficiency in India’s capital markets.

Cybersecurity Framework Under Review

On cybersecurity and artificial intelligence-related compliance for market intermediaries, Pandey said SEBI has already issued advisories and regulatory circulars following recent incidents affecting market participants.

He did not comment on possible changes in long-term capital gains taxation related to foreign institutional investor participation in Indian equities.

Global investor interest in AI-linked companies has accelerated over the past year, particularly in semiconductor, electronics and data infrastructure businesses, resulting in sharp valuation gains across several international markets.