F&O needs discipline, not prohibition: NSE CEO Ashishkumar Chauhan

The domestic equity markets may be thriving, but the F&O reality check remains sobering. Take this: A recent Securities and Exchange Board of India (Sebi) study revealed that nearly 91% of individual traders suffered net losses in the equity derivatives segment in FY25—almost identical to the trend in FY24. This raises a big question: should derivatives trading be curtailed or banned for retail investors?

NSE CEO Ashishkumar Chauhan doesn’t think so. Speaking at the launch of Sthitpragya, a book on his life journey authored by Mayur Shah, Chauhan argued that the focus should not be on banning financial instruments outright, but on ensuring proper safeguards.

“It is like how we use knives at home—mothers don’t hand them to children—or how untrained drivers are not allowed on the road because they pose risks to themselves and others. Likewise, proper training, safeguards, and regulations must be in place for such instruments, and decisions should be made accordingly,” he explained.

Chauhan, often described as the “Father of Financial Derivatives in India” for his role in shaping NSE’s derivatives market, also shared updates on the exchange’s long-awaited IPO. NSE applied for settlement in June 2025, and once it receives the No Objection Certificate (NOC), it will take approximately 4-5 months to prepare the RHP/DRHP for submission to Sebi. The clearance process may take an additional 4-5 months. “So overall, the IPO should come about 8-9 months after we receive the NOC. As of now, the NOC has not yet been received,” he said.

On the broader market landscape, Chauhan highlighted that despite India’s relatively low per capita income of around $3,000, the country has defied global theories that poor nations cannot sustain well-functioning stock markets. He attributed this success to the trust of ordinary Indians in entrepreneurs and businesses. At times, he said, as much as 50% of the world’s trades take place on NSE, showcasing the country’s growing weight in global finance.
 
For Chauhan, technology has been the single biggest driver of change in the past two decades, speeding up both wealth creation and wealth transfer. He stressed that corporate governance is the cornerstone of listed companies and that India remains one of the rare markets where rags-to-riches stories are still possible.
With technology placing the country at the global frontier, Chauhan expressed confidence that the country will achieve “miracles” over the next 50 years. In the long run, he added, more people will prefer investing in markets rather than parking money in banks.