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National Stock Exchange of India Limited (NSE): Business Overview and Strategic Pillars

The National Stock Exchange of India Limited (NSE) stands as a foundational institution in India’s financial architecture. Established in 1992 and operational since 1994, it was the nation’s first electronic stock exchange, aiming to transform capital markets. The Exchange maintains a core mission anchored in robust regulation, resilient technology, and inclusive market development.

The Group focuses on accelerating capital formation by efficiently allocating capital, which fosters the growth of enterprises—ranging from traditional firms to new-age companies—and generates wealth creation opportunities by enabling public participation in India’s economic growth. The reporting period covered in this analysis is April 1, 2024, through March 31, 2025.

1. Core Business Activities and Products

NSE operates an integrated business model that encompasses multiple asset classes and critical market functions.

Products Offered for Trading: NSE provides platforms facilitating trading across several asset segments:

• Equity
• Equity Derivatives
• Debt
• Currency Derivatives
• Commodity Derivatives

Key Strategic Focus Areas: The Exchange’s offerings support long-term investment, hedging, and price discovery. Specific product introductions during the period include the launch of Futures & Options on the Nifty Next 50. Furthermore, the platform enabled 12 projects of Not-for-Profit Organisations (NPOs) to raise funds on the NSE Social Stock Exchange.

2. The Group Structure and Subsidiaries

The NSE Group utilizes several wholly-owned subsidiaries to manage critical clearing, indexing, and international functions.

The Group also engaged in the disposal of non-core entities, including NSEIT Limited, NSE InfoTech Services Limited (which filed for voluntary liquidation on August 24, 2024), NSEIT (US) Inc, Aujas Cybersecurity Limited, and CXIO Technologies Private Limited.

3. Revenue Sources and Financial Highlights (Consolidated, FY 2024-25)

The Group’s consolidated financial position is noted as robust, resulting from strategic initiatives such as product and service diversification, next-generation technology infusion, and market inclusion efforts.

The total consolidated income reported for the year ended March 31, 2025, was ₹ 19,176.83 Crore.

A. Primary Revenue Components (₹ in Crore)

Revenue from operations constituted the majority of the income:

• Revenue from Operations: ₹ 17,140.68 Crore.
• Other Income: ₹ 2,036.15 Crore.

B. Revenue by Business Segment (₹ in Crore)

Internal reporting segmented the revenue from continuing operations as follows:

1. Trading Segment Revenue: ₹ 15,559.46 Crore.
2. Clearing Segment Revenue: ₹ 2,525.31 Crore.
3. Others Segment Revenue: ₹ 566.41 Crore.

C. Key Financial Results (₹ in Crore)

• Profit before Exceptional items and Tax from Continuing Operations: ₹ 14,265.31 Crore.
• The Group reported an exceptional item consisting of a Profit on sale of investment in associates amounting to ₹ 1,209.47 Crore.
• Profit before Tax for the year from Continuing Operations: ₹ 15,474.78 Crore.
• The consolidated Profit After Tax (PAT) for the year stood at ₹ 12,187.94 Crore.

4. Recent Strategic Developments and Highlights

The fiscal year 2024-25 was marked by significant growth in market participation, technological advancement, and regulatory matters:

Market Participation and Inclusion

• The unique registered investor base reached 11.3 Crore.
• A major shift in market ownership occurred, as individual investors surpassed foreign portfolio investors (FPIs) in terms of market ownership.
• Individual investors now hold approximately 18.2% of the total market capitalization of NSE-listed companies, amounting to about ₹ 74.5 Lakh Crore.
• Net investments by individual investors in the cash market segment demonstrated a 165% year-on-year increase, totaling ₹ 1.25 Lakh Crore ($14.9 billion).
• Investor participation is widespread, covering 99.85% of India’s pin codes.

Governance, Technology, and Compliance

• Regulatory Settlement: The Company paid a consolidated settlement amount of ₹ 643.05 Crore to SEBI on September 25, 2024, related to the Trading Access Point (TAP) Architecture and Network Connectivity matter.
• Colocation Litigation: In the ongoing Colocation WTM appeal, the Supreme Court directed SEBI to refund ₹ 300 Crore to the Company. Separately, SEBI’s Whole Time Member (WTM) disposed of a Show Cause Notice related to alleged collusion between OPG Securities and NSE employees, determining there was no sufficient evidence for connivance.
• Capital Structure Change: The Company completed a 4:1 bonus equity share issue, consequently increasing the paid-up equity share capital from ₹ 49.50 Crore to ₹ 247.50 Crore.
• Technology Pilot Programs: The Exchange is piloting several GenAI use cases, including: document summarisation (to speed up DRHP reviews), multilingual translation for website content, and the evaluation of video analytics for potential monitoring of social media for market abuse.
• Sustainability Measures: The Exchange reduces its dependence on traditional power by operating a 5 MW Wind Power Plant in Satara and solar power plants in Mumbai and Chennai. Measures implemented for energy conservation included the installation of lighting transformers, LED lights, Thermal Energy Storage Systems, and Occupancy Sensors in office areas. The use of a Sewage Treatment Plant (STP) at the Exchange Plaza building conserved approximately 23,238 kiloliters of water in FY 2024-25 through recycling.