In its IPO filing, the National Stock Exchange (NSE) outlines multiple risks that could affect its business. The exchange warns that regulatory changes—especially Securities and Exchange Board of India (SEBI) measures aimed at curbing speculative derivatives trading—could continue to weigh on earnings and growth. NSE also flags the possibility of further steps such as tighter derivatives-related rules, higher transaction taxes, and shifts in investor preferences, including migration toward other asset classes, which it says could reduce trading volumes and profitability.
The filing further highlights technology and cyber risks. NSE states it could face disruptions from technology failures and cybersecurity threats, which may affect operations or market access.
NSE also draws attention to AI as an emerging area of risk, stating that it could introduce new forms of market manipulation and potentially amplify volatility.
Finally, NSE indicates that its revenue is highly concentrated in derivatives. It says derivatives contribute a substantial share of operating income (over 78%), making the business more sensitive to any regulatory curbs or changes in derivatives market activity.
