NSE Building In-House GenAI Tools to Scale Compliance and Operations

The National Stock Exchange (NSE) is developing in-house generative artificial intelligence (GenAI) tools for compliance, customer support, software development and operational processes, according to comments made during the exchange’s post-earnings analyst call on Wednesday, as per news reports. 

A senior exchange official said the projects are still in the early stages, and the systems are being built through an on-premises framework instead of cloud-based infrastructure. 

Technology Spending Increases 

NSE’s technology spending increased during FY26 as the exchange expanded infrastructure across its regulated entities. The exchange reported technology expenses of ₹1,315 crore in FY26, compared to ₹1,022 crore in FY25. 

In the March quarter alone, technology-related costs rose around 10% year-on-year. Management said the increase was linked to infrastructure and capacity expansion to support higher trading volumes. 

Officials also said the exchange and clearing corporation were required to maintain adequate resilience within their systems to handle operational load during periods of increased market activity. 

SEBI Raises Concerns Around AI Risks 

NSE’s comments on GenAI developments come after the Securities and Exchange Board of India (SEBI) cautioned regulated entities about cybersecurity risks linked to advanced artificial intelligence tools. 

The market regulator had asked exchanges, intermediaries, and other entities to improve monitoring systems, internal safeguards, and coordination measures to address emerging technology-related threats and vulnerabilities. 

Profit Growth in March Quarter 

For the quarter ended March 2026, NSE reported a consolidated net profit of ₹2,871 crore, up 8.3% from the same period last year. 

Consolidated revenue from operations rose to ₹4,967.59 crore during the quarter, compared to ₹3,771.41 crore in the corresponding quarter of the previous financial year. 

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

IPO Plans and Market Share Comments 

NSE Managing Director and Chief Executive Officer Ashishkumar Chauhan said, “Notional value has no relevance. The concept is basically flawed and it has no contribution in terms of finance side.” 

The management also confirmed that the exchange had received the required shareholder participation for the proposed offer for sale ahead of its planned Initial Public Offering (IPO). 

Existing investors are expected to dilute a part of their holdings through the issue. 

Read More: SEBI Clears Appointment of Sanjay Shorey, Viral Mody as NSE Executive Directors! 

Conclusion 

NSE’s disclosures highlighted its focus on technology , operational systems and internal AI tools. The exchange also reported growth in quarterly revenue and profit during FY26. 

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