Recent corrections in Indian equities amid geopolitical tensions have made valuations “quite attractive,” creating a “tremendous opportunity” for foreign portfolio investors (FPIs) to increase allocations, said Kamlesh Chandra Varshney, whole-time member, Securities and Exchange Board of India (SEBI).
“There is a tremendous opportunity to invest in Indian equity markets with the kind of correction which has taken place now in the last few months, particularly after the war that has broken out,” Varshney said at a Russia-India forum on capital market integration at the National Stock Exchange (NSE).
His comments come even as FPIs have remained net sellers so far in FY26, with over ₹77,000 crore of outflows reported in the first half of March amid global volatility linked to the West Asia conflict.
Varshney said the regulator would work with stakeholders to ease procedural and technical bottlenecks for Russian investors and may consider setting up dedicated working groups to address specific requirements.
He also encouraged Russian companies to tap Indian markets through local listings. “We have seen some companies who have done that and their subsidiary’s valuation in India is more than the valuation of their parent company overseas,” he said, highlighting the potential for better valuation outcomes.
At present, 23 Russian entities, including banks and financial institutions, are registered as FPIs in India, with access to both equity and debt markets.
Ashishkumar Chauhan, Managing Director and CEO, NSE, said India offers a broader proposition for global issuers. “For Russian issuers, the proposition is broader still, because India’s markets can offer not only access to capital, but also the possibility of stronger valuation outcomes. India’s capital markets are not only financing growth at home, but are also becoming an increasingly important channel for long-term international economic engagement,” he said.
Chauhan added that the India-Russia financial partnership needs to translate into a more practical market architecture.
At the same event, Sergey Glazyev, State Secretary of the Union State of Russia and Belarus, called for a shift in the global financial system. “We should create a new financial architecture which is based on national currency and international transparency and trust to each other,” he said.
Sriram Krishnan, Chief Business Development Officer, NSE, said Russian firms could also explore fundraising through listings at GIFT City, Gujarat and consider setting up banking presence in the international financial services hub.
Separately, Varshney said SEBI is working with market participants on technology-led solutions to ease access and reduce the cost of doing business, widening participation in the securities market ecosystem.