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India's Capital Markets Shift to Innovation-Driven Intangible Economy: NSE CEO

The National Stock Exchange CEO states India's capital markets are evolving to prioritize innovation and intellectual property as core value drivers. He clarifies that valuations for public listings are determined by merchant bankers once they are formally appointed. A fund manager attributes recent market corrections to global geopolitical tensions and rising oil prices, not domestic economic weakness. The regulatory framework allows flexibility for companies without a clear promoter identity regarding public float.

Key Points: NSE CEO on India's Innovation-Driven Capital Markets Evolution

  • Shift to intangible, innovation-driven economy
  • Capital markets key for scaling new businesses
  • Valuations set by appointed bankers
  • Regulatory flexibility on public float
  • Market correction driven by global geopolitics
2 min read

India's capital markets evolving rapidly with focus on innovation and IP: NSE CEO

NSE CEO Ashishkumar Chauhan says India's markets are transforming, with IP and ideas driving value. Experts discuss valuations and global risks.

"India is steadily moving towards an intangible economy, where ideas, innovation and intellectual property are becoming central to value creation - Ashishkumar Chauhan"

Mumbai, March 9

India's capital markets are undergoing a significant transformation, with innovation, intellectual property and new-age businesses increasingly driving value creation, National Stock Exchange Managing Director and CEO Ashishkumar Chauhan said on Monday.

Addressing industry leaders here, Chauhan highlighted the evolving landscape of India's financial ecosystem and outlined key priorities and emerging risks for capital markets.

"India is steadily moving towards an intangible economy, where ideas, innovation and intellectual property are becoming central to value creation, and capital markets play a key role in helping such businesses scale," NSE CEO said.

On the sidelines of the event, Chauhan also spoke about the valuation process for companies planning public listings.

He said that valuations are typically determined by merchant bankers and since they are yet to be appointed in the concerned case, the final valuation figures are not yet known.

"Valuation is usually determined by the merchant bankers, but they have not yet been appointed, so I do not know what the final amounts will be," Chauhan said.

He added that the current regulatory framework allows companies to maintain a smaller public float under certain circumstances.

"The broader rules framed by the Securities and Exchange Board of India (SEBI) provide flexibility for companies that may not have a clearly defined promoter identity," he mentioned.

Speaking to IANS about the recent correction in equity markets, A. Balasubramanian, Managing Director and Chief Executive Officer of Aditya Birla Sun Life AMC Limited, said the downturn has been influenced by rising geopolitical tensions, particularly the conflict involving Iran, which has triggered concerns over energy supplies and pushed oil prices higher.

He noted that the current market correction is not favourable for India, but added that the situation is largely being driven by global factors rather than domestic economic weaknesses.

"The market correction we are witnessing is not good for India. However, there is a lot of economic uncertainty in global markets due to the ongoing war involving Iran and the resulting rise in oil prices," Balasubramanian told IANS.

- IANS

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Reader Comments

R
Rohit P
Good to hear the NSE CEO acknowledge the global factors behind the correction. Sometimes media creates panic as if it's an India-specific problem. Geopolitical tensions and oil prices are the real culprits. Our domestic fundamentals remain strong.
A
Aman W
The flexibility in public float rules for companies without clear promoters is interesting. It should help more new-age, professionally-run companies list. But SEBI must ensure strong corporate governance is in place. Transparency is key.
S
Sarah B
While the focus on innovation is great, I hope this doesn't lead to another bubble like we've seen in other markets. Valuations need to be sensible. Merchant bankers have a huge responsibility to get this right for retail investors.
V
Vikram M
Absolutely correct! From 'Make in India' to 'Create in India'. Our software, pharma research, and space tech are perfect examples where IP drives value. Capital markets funding this shift is crucial for our economic future. 🚀
K
Karthik V
Market corrections are a part of the cycle. For long-term investors like me, this is a time to look for quality companies at better prices. The broader India growth story is intact. Let's not get swayed by short-term noise.

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