Fortune India 40 Under 40: Stock markets reward performance, not promises, says Ashish Chauhan of NSE

Ashish Kumar Chauhan, managing director and chief executive officer of the National Stock Exchange (NSE), who has also led the BSE, is well-versed in the challenges faced by public markets. Speaking at the Fortune India 40 Under 40 awards in Mumbai, Chauhan reminded the audience that true prestige in business is earned not through lofty private valuations, but by consistently delivering results in the public markets.

“In a way, the private markets are always like this… It’s a make-believe world where two of us say this company is valued at so much, then we pass it on to a third friend who pays 10 times more, and so it continues. But ultimately, it’s a make-believe world,” said Chauhan during a fireside chat at the Fortune India 40 Under 40 awards in Mumbai.

He explained that public markets function differently because “thousands and millions of people” judge a company mainly on its actual performance rather than on promises. “Sometimes we also chase after promises, but broadly we focus on performance rather than profit.”

In a piece of advice to entrepreneurs, Chauhan added, “If you can’t perform and you want to give nice stories, then stay with private markets. If you want to perform, get profits [after] coming to us.”

Addressing the misconception that all promising startups receive funding, he said, “Out of 10,000 entrepreneurs, probably two or three get funded through connections. The rest 9,997 have to go through the grind, and work and build themselves up.” He pointed out that the NSE also offers an SME platform where firms can raise as low as ₹5 crore and still achieve significant growth.

Recalling a success story, he said, “In 2012, a guy raised ₹2 crore. Today, his company is worth ₹2,000–3,000 crore, and he is worth ₹1,000 crore.”

Chauhan emphasised that the stock market does not care about one’s background or connections. “This market is truly democratic. It doesn’t matter which caste, creed, language, or school you come from—whether Harvard or Jhumri Talaiya. If you make money for others, we will support you,” he said.

Citing examples, he mentioned Dhirubhai Ambani, who worked as a petrol pump attendant before founding Reliance Industries in 1977, and Nandan Nilekani and Narayana Murthy, who built Infosys without coming from traditional business families. “They made billions not just for themselves but for others,” Chauhan said.

He concluded with a reminder for those involved in public markets: “When you come to the public markets, don’t think only about yourself. You are part of a larger family. You have to take care of them before you take care of yourself.”

Chauhan also revealed that nearly 20% of Indian households investing through the NSE can now be classified as middle class. "India is rapidly becoming middle class, 20% Indians have invested through NSE into stock markets, which tells you that India's 20% households are now middle class," he said.

He said that in 2014, when Prime Minister Narendra Modi took office, India had just 1.67 crore unique investors and a market capitalisation of around ₹67 lakh crore. “Today, we have 11.8 crore unique investors, almost 12 crore, which is seven to eight times more. The market cap has also risen similarly, touching nearly ₹400 lakh crore,” he added.