Bangalore, 18th March, 2025: Global financial markets are undergoing seismic changes, and volatility is no longer an anomaly—it is the new normal. In India only 2 percent out of 110 million market participants actively trade in derivatives, Chauhan says
At the recent panel discussion in Singapore, Ashishkumar Chauhan, MD & CEO of NSE, delivered sharp insights on the shifting power dynamics in global markets, the changing role of international institutions, and how technology is redefining capitalism itself.
Volatility As The Pulse of Progress
Rather than seeing volatility as a market flaw, Chauhan argued that it is an intrinsic part of economic life. “Life itself is volatile,” he noted, comparing market fluctuations to a heart monitor—where stability equates to stagnation. The real issue, he stressed, is whether this volatility remains manageable.
Market turbulence is often the result of a disconnect between expectations and economic fundamentals. When collective sentiment runs ahead of reality, the correction is swift and often painful. “Markets are driven by interactions—between individuals, societies, and nations,” Chauhan said, warning that geopolitical shifts now hold more sway over markets than traditional economic indicators. “Geopolitics eats economics for breakfast.”
The Decline of the ‘W’ Institutions One of Chauhan’s most provocative statements concerned the decline of key global institutions. “The UN is gone. The WTO is gone. WHO is gone. Everything with ‘W’ is gone,” he declared, pointing to a world rapidly moving away from rule-based systems toward a transactional order.
The United States, once the anchor of global economic governance, is now experiencing an identity crisis. After decades of underwriting global institutions, Washington is stepping back, forcing emerging powers like China and India to fill the void. However, Chauhan cautioned that this power transition would be neither seamless nor predictable.
The Dawn of ‘Capitalism Without Capital
Chauhan introduced a compelling new concept: “Capitalism without capital.” Traditionally, economic expansion required massive investments to generate growth. Karl Marx famously theorized that capital begets more capital. However, technology has disrupted this model.
“Today, you don’t need a lot of capital to create wealth,” Chauhan observed, citing AI, blockchain, and digital platforms as game-changers that allow businesses to scale rapidly with minimal financial input. He pointed to India’s booming startup scene, where over 200 micro-IPOs have listed on NSE in the past year, as evidence of this new economic paradigm.
Indian Investors Are in It for the Long Haul
Chauhan also sought to debunk the notion that India’s stock market is dominated by short-term traders. “Out of 110 million market participants, only about 2 percent actively trade in derivatives. The vast majority are long-term investors,” he clarified.
A key pillar of this long-term mindset is India’s systematic investment plans (SIPs), in which millions of small investors commit to regular monthly contributions. With 50 million participants, SIPs have become a major stabilizing force in India’s markets, underscoring the country’s growing culture of disciplined investing.
Cyber Warfare & The Digital Battleground
As financial markets become increasingly digitized, they are also facing unprecedented cyber threats. Chauhan revealed that NSE alone endures between 40 to 100 million cyberattacks every single day. “Attackers only need to be successful once in ten years; we need to be successful every single day,” he warned.
Adding to these challenges is the rise of deepfake technology. Chauhan recounted a personal experience where a deepfake video using his likeness falsely claimed he was offering stock tips via WhatsApp groups. The proliferation of such misinformation is an emerging threat to financial integrity, forcing regulators and institutions to stay vigilant.
The Future of the US Dollar
Addressing the question of whether the US dollar will remain the world’s reserve currency, Chauhan remained unconvinced that a viable alternative exists. “After World War II, the US meticulously positioned itself to replace the British pound as the global reserve currency. Today, no other country is ready to take on that role,” he argued.
Despite its economic strength, China lacks the financial openness required to support a global reserve currency. Until another nation steps forward with the necessary economic and political infrastructure, the dollar will maintain its dominance—by default rather than by design.
A World in Flux
Chauhan’s remarks at the panel discussion painted a stark picture of a world in transition. With traditional power structures fading and technology upending financial models, the future of capital markets is more uncertain than ever. However, he reminded investors that volatility is simply the price of progress.
The key to navigating this turbulence, he suggested, is adaptability. The financial world belongs not to those who resist change, but to those who anticipate it and evolve accordingly. As history has shown, those who embrace transformation are the ones who shape the future.
