The National Stock Exchange of India (NSE) recently made its historic debut on Dalal Street, listing at Rs 1,800 per share and closing 1.79% higher at Rs 1,817. Following this significant milestone, NSE CEO and MD Ashishkumar Chauhan and Chairperson Srinivas Injeti shared insights into the exchange's operational philosophy during an exclusive interview with Business Today.
Balancing Profitability with Market Responsibility
A central theme of the discussion revolved around the delicate balance between maintaining significant profitability and the exchange's inherent responsibility to prevent excessive market speculation. Srinivas Injeti emphasized that profitability must not come at the expense of investors or the broader market.
"We have been profitable and at the same time we were also responsible. We were also a competent regulator. So post listing also, there is no difference. You can be profitable in a responsible way. You cannot increase your margins or increase your profitability at the cost of investor or at the cost of the market," Injeti stated.
Ashishkumar Chauhan echoed this sentiment, asserting that the NSE prioritizes its role as a responsible regulator before its identity as a business. This foundational principle guides its operations and strategic decisions.
Diversifying Revenue and Leveraging Technology
Injeti elaborated on the NSE's revenue composition, noting that approximately 80 percent stems from trading activities, with the remaining 20 percent derived from related services. He highlighted the need for the exchange to actively diversify its revenue streams to ensure sustained growth and stability.
A key area for diversification lies in data monetization. Chauhan pointed out that the NSE originated as a technology firm, generating vast amounts of data. This data, he explained, presents a significant opportunity for monetization within the established regulatory framework.
Growth Trajectory and Economies of Scale
Chauhan underscored the NSE's remarkable growth trajectory, recalling that the exchange initially handled around 700 trades per day. Today, it facilitates an astounding 30 crore trades during a single session. This exponential growth showcases the exchange's robust infrastructure and market penetration.
Injeti added that as the country's largest exchange, NSE benefits from substantial economies of scale. The existing technology and skilled manpower mean that launching new products often incurs only variable costs, rather than significant additional capital expenditure. This operational efficiency positions NSE strongly for future expansion.