NSE CEO Highlights India's Progress in Investor Protection and Corporate Governance
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Synopsis
NSE CEO Ashishkumar Chauhan emphasized India's significant enhancements in protecting small investors and improving corporate governance amidst rapid technological advancements. He highlighted the NSE's remarkable market cap growth and the importance of technology in wealth creation during a recent conclave.
Key Takeaways
- India excels in small investor protection.
- Corporate governance has seen substantial improvements.
- NSE's market cap grew from Rs 4 lakh crore to over Rs 400 lakh crore.
- Technology is a key driver of wealth creation.
- Unique investors on NSE surpassed 11 crores.
Mumbai, Feb 18 (NationPress) India is excelling in safeguarding small investors while there has been a notable enhancement in corporate governance amidst swift technological advancements, stated Ashishkumar Chauhan, the MD and CEO of the National Stock Exchange (NSE), on Tuesday.
The market capitalization of the NSE was at Rs 4 lakh crore in 1994, and it has now exceeded Rs 400 lakh crore.
"As evolution takes place, it begins gradually and then accelerates quickly. The cleanup in corporate governance has made significant strides. We have transitioned from annual reports released after two years to quarterly results. India is making great progress in protecting small investors," Chauhan remarked during the NDTV Profit’s 'Blueprint for Viksit Bharat @2047' conclave.
"I generally do not predict market movements; however, technology is the primary catalyst for wealth creation. Technology drives change, and that change generates wealth," he conveyed to the audience.
Reflecting on the last 30-40 years, Chauhan emphasized the incredible transformation from a time devoid of computers to their widespread integration.
"The rapid technological changes we are witnessing today are poised to generate even greater wealth compared to the advancements of the previous century, particularly among a youthful, technology-savvy population," he stated.
"India is exceptionally positioned to leverage the technological surge and the wealth it fosters," the NSE CEO underscored.
He acknowledged the NSE's role in automating processes and enhancing corporate governance, ensuring it consistently serves the interests of minority shareholders.
“The primary role of the stock market is to uphold corporate governance that favors minority shareholders. In this respect, India is performing better than the best,” he asserted.
During a panel discussion, Morgan Stanley MD and Chief Equity Strategist for India, Ridham Desai, noted that the narrative surrounding emerging markets has evolved since the mid-90s.
He added that many assets in this category are diminishing, and India is also feeling some of the impact.
"India must broaden its capital sources. We need to permit other capital pools to enter the Indian stock markets. This would guarantee more sustainable flows," he recommended.
As a notable point, the total unique investor base (unique PANs) on the NSE has surpassed the 11-crore milestone for the first time, with total client accounts registered with the exchange now exceeding 21 crore.
