Ashishkumar Chauhan, Managing Director and CEO of the National Stock Exchange (NSE), recently shared insights about India’s growing investment culture. He revealed that out of the 110 million market participants in India, only 2 percent actively trade in derivatives, while the majority are focused on long-term investments. This trend, according to Chauhan, is a sign of a disciplined and sustainable approach to investing in the country.
Speaking at a panel discussion in Singapore, Chauhan dismissed the misconception that India’s stock market is primarily driven by speculative trading. He emphasized that the country’s market is evolving with a growing focus on long-term wealth creation.
Chauhan noted that, traditionally, wealth creation was seen as dependent on large financial investments. However, he pointed out that technological innovations, including artificial intelligence (AI), blockchain, and digital platforms, are changing this dynamic. These technologies enable businesses to scale with minimal capital, moving away from the traditional, capital-intensive economic models.
He highlighted India’s booming startup ecosystem and the rise of micro-IPOs (Initial Public Offerings) as examples of how wealth creation is no longer confined to large financial institutions. Chauhan stated that this shift is empowering more individuals and businesses to participate in wealth-building activities.
Addressing the concept of financial stability, Chauhan redefined conventional views, suggesting that market volatility is not necessarily a weakness, but rather a natural aspect of economic progress. He argued that disruptions in the market often result from geopolitical changes, not just economic factors. “Geopolitics eats economics for breakfast,” Chauhan remarked, pointing out how global power struggles are increasingly influencing financial markets.
On the topic of global currencies, Chauhan discussed the future of the US dollar. He acknowledged speculation about potential alternatives, but firmly stated that the US dollar would continue to dominate global trade and investment. According to Chauhan, the US positioned the dollar as the world’s reserve currency after World War II, and no other country is currently in a position to challenge its role.
Chauhan also raised concerns about the growing threat of cyber warfare in financial markets. He revealed that stock exchanges are facing constant cyberattacks, making digital security a top priority. Additionally, the rise of deepfake technology has added complexity to the situation, with fraudulent videos manipulating investor sentiment and threatening the integrity of financial markets. Chauhan urged regulators and financial institutions to stay ahead of these evolving cyber threats to maintain trust in capital markets.
