11 hrs ago
NSE Chairman Says Investor Protection Comes Before Business
The National Stock Exchange says its most important job is keeping investors safe.
Its chairman said this matters even if the exchange earns less money.
The exchange and other Indian markets have earned much of their income from derivatives, especially options.
New rules are being introduced to reduce risks in that area.
NSE wants to earn more from regular share trading, electronic gold receipts and commodities.
A SEBI study found that almost nine out of ten individual derivatives traders lost money in 2025-26.
NSE also wants permission to trade its own shares on its own platform.
Indian rules currently prevent exchanges from listing themselves because of possible conflicts of interest.
NSE Chairman Srinivas Injeti said investor protection and market integrity are the exchange’s primary duties.
He said dependence on derivatives revenue must decline amid tighter regulation of equity derivatives.
NSE said it is diversifying toward cash markets, electronic gold receipts and commodities.
A SEBI study found nearly nine in 10 individual derivatives traders lost money in 2025-26.
Injeti urged SEBI to permit exchanges to list on their own platforms under updated norms.
- Who
- National Stock Exchange Chairman Srinivas Injeti, Managing Director and CEO Ashishkumar Chauhan, NSE management and SEBI.
- What
- NSE said investor protection must take priority over business, while discussing derivatives regulation, revenue diversification and exchange self-listing.
- Where
- At a media briefing in India; the article does not specify the city.
- When
- The comments were made on Friday, one day after NSE’s shares listed on the BSE.
- Why
- NSE wants to reduce excessive dependence on derivatives, better protect retail investors and align self-listing rules with international practice.
Investor Protection and Regulatory Caution
Exchange Flexibility and Market Development
Derivatives dependence
Investor Protection and Regulatory Caution
NSE’s leadership supports reducing excessive dependence on derivatives because tighter regulation and retail losses make investor protection and market integrity the priority.
Exchange Flexibility and Market Development
Exchange operators have historically relied heavily on derivatives revenue, but NSE says it can offset the impact by expanding cash-market, commodity and electronic-gold-receipt activities.
Exchange self-listing
Investor Protection and Regulatory Caution
SEBI continues to prohibit exchanges from listing on their own platforms because of potential conflicts of interest.
Exchange Flexibility and Market Development
NSE Chairman Srinivas Injeti argues that India’s market has matured and that self-listing should be permitted in line with major international markets.
Key facts
- NSE’s primary duty
- Maintaining a safe, trusted and investor-protective market.
- Derivatives dependence
- NSE and BSE once derived more than 90% of their revenue from derivatives.
- Retail trading losses
- A SEBI study said nearly nine in 10 individual traders lost money in 2025-26.
- Reported average loss
- The study said average loss per trader rose 2% year-on-year to Rs 1.17 lakh crore.
- NSE diversification areas
- Cash markets, electronic gold receipts and commodity markets.
- Self-listing rule
- Indian regulators currently prohibit exchanges from listing on their own platforms.
- NSE share listing
- NSE shares listed on the BSE on Thursday at a premium of about 1%.
Quotes
Srinivas Injeti
Chairman of the National Stock Exchange
“This imbalance, excessive dependence (on the derivatives segment), you know, will have to be reduced. So, I think that is the big picture. And given this, there is no way, there is no jugglery, there is no way in which quarter to quarter you can do some magic.”
indianexpress.com
“We can’t be distracted from our primary duty of giving you a market with integrity and a market where investors are protected”
indianexpress.com
Sources
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