Even as India witnesses a surge in initial public offerings, the country’s capital markets will continue to prioritise profitability, transparency, and strong corporate governance, said Ashishkumar Chauhan, MD & CEO of the National Stock Exchange (NSE), during IPO Baatcheet, a flagship thought-leadership series hosted by Startup Policy Forum (SPF).

Speaking at the event, Chauhan underscored that India’s public markets operate differently from more risk-heavy global markets, with both institutional and retail investors showing a strong preference for businesses rooted in sustainability and accountability.
“Broadly speaking, India is about profitability, about transparency and about better corporate governance,” he said.

Trust as the Cornerstone of Public Markets

Chauhan stressed that trust is the bedrock of India’s capital market ecosystem—an element that becomes even more crucial as retail participation expands rapidly.
“Corporate governance is the backbone of this trust. It’s like a pond out of which we all drink… It’s easy to destroy that trust, but very difficult to build,” he noted.

Addressing promoters of listed companies, Chauhan urged founders to embrace the responsibility that comes with managing public capital. He emphasised the need to minimise the information gap between insiders and retail investors.
“Whenever in doubt, take the decision in favour of the other investors, not yourself. Even if it is legally allowed, don’t do that because morally it may not be correct,” he said.

IPO Frenzy vs Long-Term Performance

As new-age companies increasingly explore public listings, Chauhan cautioned that IPOs should not be viewed as guaranteed wealth creators. Instead, he stressed that long-term success hinges on post-listing performance across one-, two-, and five-year periods.

He highlighted that public markets inherently involve risk, and that investors must remain aware of how macroeconomic conditions, governance standards, and company fundamentals influence returns.

Retail Participation Hits Record High

Reflecting on the structural evolution of India’s public markets, Chauhan shared that the NSE now has over 12 crore unique investors, representing nearly one-fourth of Indian households. He attributed this to the growing trust among Indian families in market institutions and entrepreneurial leadership.

However, he warned against speculative investing driven by emotion, noting:
“Stock market is not a game.”
Chauhan said becoming wealthy through markets requires “understanding, patience, study and discipline.”

A Strong Warning on Derivatives Trading

Chauhan also issued a direct caution to retail investors exploring derivatives trading.
“Don’t trade in derivatives if you’re a retail investor. If you don’t know the risks associated, you should not come into the derivatives market,” he said.

He reiterated that derivatives should be used by trained, financially capable participants who can absorb potential losses, not by individuals driven by uninformed optimism.

NSE’s Tech Infrastructure: Built for Scale and Resilience

Chauhan highlighted the NSE’s technological capabilities, noting that the exchange can process up to 60 lakh orders per second, with microsecond response times that are advancing toward nanoseconds.

He also outlined the exchange’s strengthened cybersecurity posture, sharing that the NSE has at times faced up to 40 crore cyberattacks within just 20 minutes on its website.

Startup Policy Forum to Launch Centre for New-Age Public Companies

During the session, Shweta Rajpal Kohli, CEO and President of SPF, announced that the organisation is establishing a Centre for New-Age Public Companies to support high-growth startups preparing for listing and managing post-IPO transitions.

“Our fundamental belief is that new-age companies need a lot more handholding, capacity building and institutional understanding,” she said. As India’s markets continue attracting new-age companies and millions of first-time investors, SPF aims to build a robust bridge between founders, policymakers, and the capital markets ecosystem.

By: Shivani Solanki