From a nation of savers to a nation of investors: NSE bets on technology, financialisation and market depth

With retail participation surging and demat accounts scaling new highs, India’s capital markets are entering a new phase of growth. In an interview with businessline, NSE Chairman Srinivas Injeti and MD & CEO Ashishkumar Chauhan said the focus is now shifting from merely expanding the investor base to deepening the financialisation of household savings. They expect NSE’s future growth to be driven by a broader ecosystem spanning equities, bonds, data, technology and global connectivity, while positioning India as an emerging global financial hub powered by innovation and market depth.

India has seen a sharp rise in demat accounts and retail participation. What are the next big milestones for Indian capital markets?

The next phase is not merely about adding more demat accounts. The larger objective is to deepen financialisation by encouraging broader participation in equities, bonds, mutual funds and ETFs. We also need greater market penetration beyond large cities and increased participation by SMEs in raising growth capital through capital markets.

Exchanges have a major role to play in making markets more accessible, transparent and resilient. Ultimately, the goal is to help India move from being a nation of savers to a nation of investors, while strengthening financial literacy and investor protection.

The three biggest opportunities are the growth of India’s economy and capital markets, increasing financialisation of household savings, and advances in technology and globalisation, including opportunities through GIFT IFSC. On the risk side, investor trust and market integrity remain paramount. Technology and cyber risks require constant vigilance as markets become increasingly digital. Another key challenge is adapting to regulatory and market developments without compromising investor protection. Long-term value creation must come from strengthening the broader market ecosystem rather than relying on any single source of transaction revenue.

It is important to look beyond the perception that NSE is purely options-driven. Weekly options account for around 46 per cent of NSE’s revenue, while the balance comes from equities, futures, monthly options, indices, market data, terminals and other businesses. Our effort is to broaden the revenue base further through products such as electricity futures, bond-index futures, Electronic Gold Receipts and expanded market-data and technology offerings. Derivatives will remain an important part of price discovery and risk management, but future growth should increasingly come from multiple asset classes and technology-led businesses.

Regulators have tightened norms around retail participation in derivatives. How has this changed market behaviour?

Such measures should primarily be viewed through the lens of investor protection and market quality. The objective is to ensure participation is informed, sustainable and backed by proper risk awareness. The market is adapting to changes in weekly options and retail participation norms. While weekly options remain important, monthly options and futures continue to play a significant role. We are also seeing investors become more sophisticated as technology improves access to information. Our responsibility is to support this transition through investor education, transparent information and resilient market infrastructure.

We do not view products, technology, data and connectivity as separate silos. They reinforce one another. Data and technology have significant long-term potential because they can scale across markets and geographies without depending solely on trading volumes.

New products such as Electronic Gold Receipts can also create opportunities by improving transparency and market-based price discovery. Growing demand for real-time data, analytics and portfolio-management tools is expected to further strengthen this segment. Over time, NSE can evolve from being primarily a transaction marketplace into a broader financial-market technology and information platform.

The shift was aimed at bringing India-related price discovery closer to home through GIFT IFSC. The objective was not simply to relocate a trading benchmark, but to create an international venue within India where global investors could access India-related products through a regulated ecosystem. Global investors will continue to use multiple financial centres, but the key achievement is that India now has a credible international platform attracting global liquidity. The long-term ambition is for India to become not just a recipient of global capital, but increasingly a price setter and a financial-market hub.

Competition should be measured by whether investors receive better products, lower friction, stronger innovation and greater efficiency. NSE’s market share reflects the liquidity, scale and technology that market participants have chosen, but that also creates a responsibility to continually raise standards. Our benchmark is increasingly global. New asset classes, technology investments and innovation in data and connectivity can deepen market development. Ultimately, competition that benefits investors strengthens the entire financial system.