Derivatives Need Risk-Based Approach: Ashishkumar Chauhan, NSE MD & CEO

Ashishkumar Chauhan, NSE Managing Director and CEO, emphasizes that the exchange's listing represents a significant milestone, but its primary duty remains unchanged: maintaining India's capital markets' safety, orderliness, and accessibility. In an interview with The Free Press Journal's Sheryll D’Souza, Chauhan discusses NSE's expansion, financialization risks, retail investor concerns, and responsibilities post-stock market debut.

NSE's inclusion marks a substantial moment in India's financial ecosystem, representing nearly USD 5 trillion in wealth and managing around 13 crore unique investors, roughly nine crore households. Over three decades, NSE has amassed nearly two lakh shareholders seeking enhanced liquidity for their holdings, including banks and insurance companies among the original shareholders.

Despite the impressive growth, the exchange acknowledges that there are still many Indians uninvolved in the securities market. The challenge lies not just in adding more investors but in educating them about pitfalls and helping small savers comprehend what actions to take. Financialization has witnessed a rapid acceleration in the last 12 to 15 years, driven by factors like Jan Dhan, Aadhaar, mobile connectivity, smartphones, and UPI.

While substantial progress has been made in providing access to formal finance, the next challenge is leveraging this infrastructure to create a more financially secure society. In light of NSE's decision to go public, Chauhan emphasizes that operationally, there will be minimal change. NSE has already been accountable to regulators, authorities, investors, and shareholders, publishing quarterly results and disclosing material developments. The listing is essentially a formal step rather than a fundamental operational transformation.