NSE Empowers 11.8 Crore Indians Through Innovative Trading Reforms

The National Stock Exchange of India (NSE) has transformed stock trading into an accessible platform for millions of Indians, according to CEO Ashish Kumar Chauhan. In an interview with NDTV Profit on September 13, 2023, Chauhan highlighted the significant growth of NSE, which has expanded its investor base from around 1 million in the 1990s to an impressive 118 million today.

Chauhan attributed this transformation to technology-driven reforms that have democratized stock trading, moving it away from being perceived as a “game of the rich.” He stated, “Only in retrospect, you think it was a disruption. Sometimes you do it out of necessity or whim. Mostly, it is hard work, using new tech—and magic happens.” This approach has not only made trading more efficient but has also enhanced transparency and trust in the financial markets.

From Limited Access to Widespread Participation

When the NSE was established, stock trading in India was fraught with inefficiencies. Transactions could take up to 16 days to settle, and incidents like the Harshad Mehta scam marred the reputation of the market. Chauhan, an alumnus of IIT and IIM Calcutta, was one of five key individuals tasked with building the NSE from its inception. The introduction of satellite connectivity and nationwide trading terminals marked a significant leap in speed and efficiency, leading to a surge in investor participation.

Chauhan noted that today, the NSE boasts a market capitalization of approximately ₹450 trillion, which is 125 times larger than in its early days. He emphasized that the current landscape includes 25% of traders being women, a noteworthy increase that reflects broader societal changes.

Commitment to Governance and Transparency

Chauhan further elaborated on the NSE’s commitment to enforcing corporate governance and ensuring pricing transparency. The exchange operates under the regulations set by the Securities and Exchange Board of India (SEBI), which allows it to suspend companies that fail to comply with disclosure norms. He stated, “The power of transparency has brought 85 million households into entrepreneurship.” This statement underscores the NSE’s role in fostering a fair and equitable trading environment.

As stock trading continues to evolve in India, the NSE’s innovative approaches and dedication to inclusivity highlight its pivotal role in shaping the financial landscape for ordinary citizens. Through ongoing reforms and technological advancements, the NSE aims to further enhance accessibility and transparency for all investors.