Q: What are the new products and segments that NSE has identified for its next growth phase?
The next phase of growth will be driven by a combination of new products, newer market segments, technology, and deeper participation across the financial ecosystem. We are already expanding some of our traditional businesses.
Of particular interest to us are electricity futures, electronic gold receipts (EGRs), commodity and energy products, bond index futures, among others. We are also looking at opportunities in the bond ecosystem. We received Sebi’s (Securities and Exchange Board of India’s) approval to launch Corporate Bond Index Futures on September 30, 2026.
EGRs are interesting because they can bring greater transparency and efficiency to the gold market and potentially enable a wider ecosystem of products around gold. Electricity futures have scope for better price discovery in a segment of the power market.
Q: How will NSE look to retain its leadership in equity cash and derivatives market in the coming years?
We do not seek leadership only in terms of market share or volumes. It is about a sustained ability to provide markets that are efficient, fair, transparent, orderly, and low-cost. You would agree that regulation is an important part of the evolution of any market.
Therefore, while the regulators ensure that markets develop in a manner that protects investors and maintains market integrity, we continue to operate within the regulatory framework. The derivatives market has gone through a period of significant regulatory change. It has adapted, with activities spread across different instruments, including monthly options, futures, and other segments.
Q: How do you intend to diversify your revenue streams?
Diversification is a process. Equity derivatives will remain an important part of NSE’s business because they are an important component of the overall capital-market ecosystem. However, the objective is to ensure that our growth is not dependent on a small number of products.
We are, therefore, building multiple revenue streams across commodities, energy, bonds, indices, market data, and technology-led services.
Market data and index-related businesses are already growing, although they are smaller compared with the core transaction business. Over time, we expect areas such as commodities and data monetisation to develop into meaningful, standalone revenue streams.
There is also potential for growth in the underlying equity and cash markets, as financialisation of savings continues. India's investor base is expanding, and digital adoption is increasing.
Q: Where do you see NSE in the next five years?
Over the next five years, we see NSE evolving from being primarily identified as an equity and derivatives exchange into a genuine one-stop shop, with deep liquidity across multiple asset classes. We would like to see deeper and more efficient markets across products, supported by technology, strong risk management, and surveillance infrastructure.
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