Mumbai: As India's capital markets expand to unprecedented heights, escalating technological threats require immediate, proactive defence mechanisms across the financial ecosystem.
Addressing market participants at the 16th ANMI International Capital Market Convention in Mumbai on Saturday, National Stock Exchange (NSE) Managing Director and Chief Executive Officer Ashish Kumar Chauhan cautioned that emerging AI-driven cyber risks and quantum computing challenges present a critical test for market integrity.
Highlighting the global severity of automated cyber threats, Chauhan cited recent international disruptions as a warning for Indian intermediaries.
"Over the past few weeks, we have seen a wave of AI-driven cyber hacking globally. Japan declared a national emergency over cyber hacking, and major American banks faced sophisticated AI engine attacks on their infrastructure," Chauhan said, noting that NSE is continuously reviewing its infrastructure to patch vulnerabilities.
To safeguard market participants from sophisticated cyber threats, the exchange chief called for an industry-wide collaborative defence framework.
"I request ANMI to set up a Special Task Force on Cybersecurity to ensure all members are guided, vulnerability-tested, and shielded against AI-driven hacking over the next 1 to 3 years," Chauhan urged, adding that quantum computing frameworks will soon challenge existing SSL cryptographic standards.
Chauhan commended regulatory reforms spearheaded by SEBI Chairman Tuhin Kanta Pandey for lowering operational friction while maintaining robust market safeguards.
"Reforms under his stewardship have placed market integrity and investor protection at the centre," he remarked, citing single common reporting platforms, extended reporting windows, and technical glitch reporting relief that benefited roughly 60 per cent of trading members.
Beyond equities, Chauhan noted that product innovation continues to deepen domestic capital markets.
"Starting from cash equities, we introduced equity derivatives, currency derivatives, commodity derivatives, and electricity," Chauhan stated, highlighting recent launches like Electronic Gold Receipts (EGRs) and upcoming approvals for Corporate Bond Index Futures.
Underlining the immense scale of the Indian capital ecosystem, Chauhan pointed out that the listed market capitalisation of Rs 460 lakh crore now exceeds the banking system's total credit base and balance sheet combined.
"India's listed market cap stands at ₹460 lakh crore, growing at a CAGR of 17% over the last three decades, covering over 99% of India's PIN codes," Chauhan said, adding that registered investor accounts have crossed 27 crore, with individual investors owning 19.3% of listed market value.
Looking ahead, Chauhan stressed that market intermediaries will play a pivotal role as India moves towards a developed economy.
"India’s per capita income is moving from $3,000 toward $25,000–$30,000 as we strive to become a developed nation by Viksit Bharat 2047. If India is to grow, it will grow on the back of NSE and ANMI," Chauhan concluded.
This report was published from a wire feed. Apart from the headline, the EdexLive Desk has not edited the copy.