NSE developing in-house GenAI tools for compliance, operational efficiency

NSE is developing in-house generative AI tools for compliance, customer support and operational efficiency as it strengthens technology infrastructure and resilience

The National Stock Exchange (NSE) is developing in-house generative artificial intelligence (GenAI) tools across four areas including compliance and operational efficiency, the bourse’s management said on Wednesday in a post-earnings call. 

 

“We are currently working with the in-house team and the area has continued to be compliance, customer support, operational efficiency, and software development. And these projects are in the very early stage of development at this point in time. Broadly our framework is on-premises, and not on-cloud,” said a senior official during the analyst call. 

 

The comments come in the backdrop of a 10 per cent increase in the fourth quarter of 2025-26 (FY26), year-on-year, in the technology costs for the exchange. On an annual basis, NSE’s technology expense stood at ₹1,315 crore for the FY26, compared to ₹1,022 crore in FY25. 

 

“We have been strengthening technology infrastructure in each of the regulated companies and hence the increase that we are seeing. Secondly, we are also obligated to build resilience into our technology infrastructure so that there is adequate capacity for exchange and the clearing corporation to support increased volumes,” the official added. 

 

On queries on shift in notional market share amongst the exchanges, NSE’s managing director and chief executive officer (MD & CEO), Ashishkumar Chauhan, said, “Notional value has no relevance. The concept is basically flawed and it has no contribution in terms of finance side.”

 

Chauhan also affirmed that the exchange had the required participation from shareholders for the offer for sale (OFS). 

 

According to sources, the exchange is targeting June 15 as the deadline to file the draft documents for its much-awaited initial public offering (IPO).  The IPO will be entirely an OFS, with existing investors expected to dilute up to 5 per cent stake, depending on demand. Shareholders including Temasek, Canada Pension Plan Investment Board, Life Insurance Corporation of India, and ChrysCapital are likely to pare holdings.

 

The management also emphasised on its expansion in the commodity segment. 

 

NSE’s statement on GenAI developments follow an earlier warning by the Securities and Exchange Board of India (Sebi) on emerging cybersecurity risks from advanced AI tools capable of detecting system vulnerabilities, and has asked all regulated entities to strengthen safeguards, monitoring and coordination.

 

In Q4FY26, NSE recorded a consolidated net profit of ₹2,871 crore, a jump of 8.3 per cent year-on-year. The exchange’s consolidated revenue from operations stood at ₹4,967.59 crore, surging from ₹3,771.41 crore in the corresponding quarter a year ago.

 

The board of the exchange has also recommended a dividend of ₹35 per share for FY26, subject to the shareholders’ approval.