The National Stock Exchange of India (NSE) stands as a beacon of India’s financial revolution, under the stewardship of MD and CEO Ashishkumar Chauhan. Over the past decade, NSE has epitomised growth, innovation, and inclusivity, propelling India to the forefront of global capital markets. With cutting-edge technologies, a robust investor base spanning 99.84 per cent of Indian pin codes, and trailblazing initiatives like GIFT Nifty, NSE has redefined accessibility and trust.
It has championed financial literacy, investor protection, and international collaboration, fostering a dynamic ecosystem. Following are excerpts from an interview by Blitz India Media Group Chairman and Editor-in-Chief Deepak Dwivedi with NSE chief Chauhan.
How has the role of NSE evolved over the past decade, and what do you see as the biggest changes in the market landscape?
India is the fifth largest economy and the fourth largest capital market in the world while NSE is the largest exchange in the world in terms of the number of trades per day – processing around 2,000 crore (20 billion) orders and 29 crore (290 million) trades on some days. In the past three decades, since 1994 when NSE started operations, it has emerged as a towering symbol of India’s financial ecosystem.
There are 2,671 companies listed at NSE as of December 31, 2024, across a diverse range of sectors. NSE has emerged as the number one exchange in terms of new listings in 2024 having mobilised Rs 1.67 lakh crore (US$ 19.5 billion) in IPO funds. Further, NSE Emerge marked its 500th SME listing in 2024 and ended the year with 587 listings in total.
Indian markets have seen a sea change in the number of investors, market capitalisation and fund mobilisation over the past 10 years under the leadership of Prime Minister Narendra Modi. Market capitalisation of NSE listed companies has increased in the past 10 years from Rs 73.5 lakh crore (US$ 1.22 trillion) as of May 1st, 2014, to Rs 438.9 lakh crore (US$ 5.13 trillion) as of December 31st, 2024, while the number of investors has increased from 1.65 crore (16.5 million) as of May 1st, 2014, to 10.9 crore (109 million) as of December 31st, 2024.
With the rise of digital trading platforms and mobile apps, how do you view the future of traditional exchanges like NSE?
NSE is not a traditional stock exchange. In fact, it is as modern as can be. It is a first-of-its-kind automated exchange and being India’s first digital public infrastructure, has exhibited the country’s technology prowess, investor potential, and strength in building a well governed and highly efficient ecosystem. NSE is also India’s first fintech and till date, the largest fintech.
India’s capital markets are now among the most advanced and secured globally, thanks to the seamless implementation of cutting-edge technology and best-in-class corporate governance regulations. Traders are able to conduct transactions effortlessly from any corner of the world.
Thanks to NSE, Indian stock markets have evolved from physical trading to screen-based trading to bot trading, to algorithmic trading, to high frequency trading to use of AI, which is poised to redefine investment decisions and strategies, with logic and precision.
How is NSE progressing in innovations via enhancing trust and transparency?
What we, as an ecosystem, manufacture is ‘Trust’. As India takes a center stage in global economic leadership, majority of our efforts are aimed towards further making the capital markets fair, transparent and efficient.
NSE being the first line regulator in the stock market is committed to leveraging the latest technologies for surveillance, inspection, and other regulatory functions. Our approach ensures the deployment of well-tested and reliable technologies to effectively fulfill our regulatory responsibilities.
A key milestone in our journey was the successful launch of trading for the GIFT NIFTY Index which started on July 3, 2023. This marks a crucial step towards ‘Onshoring the Offshore,’ enhancing the vibrancy and liquidity of the market at GIFT IFSC.
What steps is NSE taking to improve accessibility for smaller investors?
NSE has played a pivotal role in making capital markets accessible to all. Today, investors are registered in 99.84 per cent of Indian pin codes. Over 10.9 crore (109 million) unique registered investors with 21.1 crore (211 million) accounts cover 20 per cent of all households in India.
NSE’s new mobile app and the expansion of NSE websites into 11 regional languages mark significant progress toward creating a more investor-friendly securities ecosystem. The NSE website is now available in 12 languages: Assamese, Bengali, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu, and English.
What steps is NSE taking for investor protection?
Through its various initiatives under the NSE Investor Awareness Programme, NSE emphasises critical messages to safeguard investors. These include dealing only with SEBI-registered stockbrokers and investment advisors, avoiding stock tips or schemes promising guaranteed or high returns, and steering clear of illegal offers on social media, emails, or SMS. Investors are also advised never to share trading credentials or passwords, refrain from blindly following financial influencers, trading in futures and options only with adequate knowledge and risk appetite and ensuring their mobile number and email ID are updated with their stockbroker to receive timely updates. By spreading these messages, NSE aims to foster a culture of informed and responsible investing.
In the first nine months of FY25, NSE conducted 7,897 investor awareness programmes covering 602 districts of 35 states & UTs reaching out to 4.33 lakh participants. NSE has also established an Investor Protection Fund under a trust with a corpus of Rs 2,355 crore.
How is NSE working to attract international investors?
Thirty two Passive Funds (ETFs / Index Funds) linked to Nifty indices have been issued by international ETF issuers in international markets with total assets under management (AUM) of US$ 4.9 billion as on November 30, 2024, as compared to US$ 2.4 billion on December 31, 2023.
What is the concept of Social Stock Exchange and how is it doing?
Social Stock Exchange (SSE) is an electronic fund-raising platform for social enterprises (both not for-profit and for-profit) which is a regulated platform that brings together social organisations and impact investors / donors. It enables mechanisms to ensure robust standards of social impact and financial reporting.NSE SSE has seen good interest from NGOs and donors, with several organizations actively engaging in the fundraising process using the Zero Coupon Zero Principal (ZCZP) instrument.
NSE-SSE strives to create a vibrant platform that not only supports social enterprises but also amplify their impact, driving meaningful change across the nation.
