From Digital Transformation to Data Intelligence: The Evolution of Indian Markets

Ashishkumar Chauhan
MD & CEO, National Stock Exchange of India

Over the past three decades, India’s capital markets have changed in ways that few could have imagined. I have had the opportunity to witness this journey from the early days of screen-based trading to today’s fully digital marketplace. Technology has always been at the heart of this transformation. Today, the discussion has moved to data and artificial intelligence (AI). In my view, this is a natural next step in the evolution of exchanges.[EasyDNNnews:PaidContentStart]

India’s market capitalisation has grown significantly and now stands at around ₹470 lakh crore, or roughly USD 5.2 trillion. Alongside this growth, participation has widened. We have more than 12.5 crore unique registered investors, many of them young and investing for the first time. Fifty-six per cent of the new investors who were added in 2025 were less than 30 years of age. Average daily turnover across equity segments for 2025 includes ₹99,622 crore equity cash, ₹1,55,313 crore equity futures and ₹51,478 crore equity options. This scale brings opportunity, but it also brings responsibility.

In the early days of technological advancements, our primary goal was to bring transparency, fairness and nationwide access to trading. Moving from a floor-based system to screen-based trading was a major shift. Over time, we improved speed, reduced costs and strengthened risk management systems. Each stage of progress required investment in technology and strong regulatory coordination.

Today, most major exchanges around the world operate with advanced systems. Differences in speed are measured in microseconds. In such an environment, simply being faster is no longer enough. What matters increasingly is how well we can use the vast amount of data generated every day to make markets safer and more efficient. The exchange processes 2,000 crore orders and 30 crore trades per day. This data provides valuable insights into market trends, liquidity conditions and risk buildup.

However, I want to emphasise that AI is a support tool. It does not replace sound regulation, established risk frameworks or human judgement. Core safeguards such as margins, position limits and circuit breakers remain essential. Technology helps us strengthen these systems; it does not substitute them.

Data governance is equally important. As an exchange, we handle sensitive information from investors, trading members and listed companies. Protecting this data is a priority. We invest continuously in cybersecurity, redundancy systems and stress testing. As markets become more digital, operational resilience becomes even more critical.

Another important aspect is inclusion. Many are entering the markets through digital platforms and mobile applications. While this is encouraging, it also means we must ensure that investors understand the risks they are taking. Technology can help here as well. Clearer risk disclosures, better visibility into margin requirements and timely alerts can support more informed decision-making.

At the same time, we must be mindful of market behaviour. Rapid growth in certain segments, especially derivatives, requires careful monitoring. AI-based tools can assist in tracking concentration risks and unusual activity across segments. But policy decisions must always be taken with a balanced and consultative approach.

Global developments also influence our markets. Capital flows can change direction quickly based on global interest rates, geopolitical events or investor sentiment. Having strong data systems helps us track such movements and maintain stability during volatile periods. Coordination with regulators and other financial institutions remains essential.

Looking ahead, I see the exchange evolving beyond being only a matching engine. It will continue to be a platform for price discovery, but it will also function as an information and risk management hub. Integrated data systems can improve transparency across primary and secondary markets. Better analytics can enhance our ability to anticipate stress rather than react after the fact. That said, change must be gradual and responsible. Large financial systems cannot be redesigned overnight. We must upgrade legacy systems carefully, test new technologies thoroughly and ensure alignment with regulatory expectations. Collaboration between exchanges, regulators, intermediaries and technology partners will be key.

In my experience, trust is the foundation of any successful market. Investors participate when they believe the system is fair, transparent and resilient. Technology should strengthen that trust. AI, if implemented thoughtfully, can help us improve oversight, manage risk and serve investors better.

The journey of Indian capital markets has always been guided by a simple principle: use technology to widen access while protecting stability. As we enter the next phase shaped by data and AI, that principle remains unchanged. Our objective is not to chase trends, but to build durable, reliable infrastructure that supports long-term capital formation and economic growth. The future exchange will continue to evolve. But at its core, its mission will remain the same - to provide a transparent, efficient and trusted marketplace for investors and companies across India.

I believe that while building the exchange of the future, we are not only upgrading systems but also strengthening the foundations of economic confidence.

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