SEBI Chief Flags Global Risks From West Asia Conflict

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on April 6 said escalating tensions in West Asia are affecting global energy flows, with oil and gas supplies facing constraints and leading to sharp price movements. He made the remarks while addressing a corporate governance summit organised by the Confederation of Indian Industry (CII).

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As per Pandey’s speech, the current conflict has the capacity to affect the world economy due to disruptions in the energy chain, impacting pricing and economic activities.

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As per him, it has led to several other crises faced by the world in recent times, including the coronavirus epidemic, as well as technology-related crises such as artificial intelligence. These developments have tested the resilience of institutions and governance systems, as per his statement.

Focus On Strengthening Corporate Governance

Shifting focus to corporate governance, Pandey said the next phase of reforms should emphasise the quality of engagement at the board level. He stressed that it was important to go beyond board membership to evaluate the role of directors in oversight and decision-making.

He argued that the role played by independent directors is still very significant in ensuring proper governance practices. There is a need for improvement, particularly in terms of effectiveness in difficult business situations.

SEBI Plans Training Initiative

Pandey said SEBI is working on a joint initiative to scale up training and capacity-building programmes for independent directors. The initiative aims to enhance governance standards across companies by improving director preparedness and oversight capabilities.

He also emphasised the importance of moving from periodic reviews to continuous monitoring, stating that ongoing oversight is essential for stronger governance outcomes.

The remarks highlight the dual focus on managing global economic challenges arising from geopolitical developments and strengthening corporate governance frameworks through institutional capacity building.