Retail investors invested more than FPIs over past two decades: National Stock Exchange MD & CEO

Stock market investors' base in India has grown leaps and bounds over the years as increasing number of people are marking their presence in the capital markets.

"For the first time in the past 20 years, retail investors have held more, either directly or through mutual funds, than the Foreign Portfolio Investors (FPIs)," Chauhan told ANI on the sidelines of 16th ASSOCHAM Capital Market Conference.

He further recalled that there were less than 10 lakh investors in 1994 when NSE was started, but cut to today, there are more than 11 crore investors in India, increasing 110 times over the three decades.

"We have scratched the surface in a way. We have to go much deep and reach a position where India can itself finance its own growth. Retail investors are having greater influence in the markets over the past two decades," Chauhan told ANI in Hindi.

According to Chauhan, India has just "scratched the surface" and is destined to finance its own growth with the deepening of its financial markets.

"It can be gauged that India's retail investors have more confidence in the Indian economy," he said.

India, Chauhan said, has its own strength and it will continue to grow at one of the fastest pace in the next few years, as predicted by various agencies.

India is an outlier in the current geopolitical situation, he noted, referring to new US administration's tariff decisions.

"An opportunity has been created by India. We were not so good in manufacturing earlier. But now, those who want to move out of China considers India a good alternative. Many big companies like Apple and Samsung, whose supply chain is considered very difficult, have moved their manufacturing to India," he said.

India, which was once known for its robust services sector, is now making a space in the manufacturing sector, Chauhan supplemented.

Asked about the status of NSE IPO, Chauhan said they have sought No Objection Certificate (NOC) from the SEBI.

"An NOC is needed from the regulator SEBI so that we can prepare our DRHP (Draft Red Herring Prospectus). We have started the process, we have asked for the NOC. When a decision is made by them. If they give go ahead, we will be able to prepare our DRHP," Chauhan said.

"After that, whatever time they take to clear it (the DRHP), those things are not in our hands. But all I can say is that the process has started," he further said.

In late 2016, NSE filed the draft red herring prospectus for its Initial Public Offer (IPO), with the market regulator SEBI, looking to raise reportedly then Rs 10,000 crore. However, the plans did not go through because of various issues flagged by the market regulator and a pending co-location case against NSE's former officials.

SEBI recently disposed of proceedings against the NSE in various pending cases against its former officials in the co-location case. This was seen as the end of the block for the much-awaited IPO of the leading exchange.

BSE, a competitor of NSE, was listed in 2017 and became India's first listed stock exchange.