1. ECONOMIC OUTLOOK
A. GLOBAL ECONOMIC ENVIRONMENT
Global growth remained solid through much of 2025, expanding at an annualised pace of around 3.25% in the second half of the year. Economic activity was primarily supported by strong private consumption and investment across several major economies. Accommodative financial conditions, supportive fiscal measures, and rising investment in artificial intelligence technologies further underpinned global demand. Despite elevated tariffs, policy uncertainty, and lingering geopolitical tensions, the overall impact of these headwinds proved less severe than initially anticipated, allowing global activity to display notable resilience during the year.
The global macroeconomic landscape in 2026 is defined by subdued growth, reignited inflation, and intensifying geopolitical fragmentation. A massive energy supply shock-driven by escalating conflicts in the Middle East and critical maritime bottlenecks-has disrupted international trade and halted the post-pandemic disinflationary trend. While robust corporate investment in Artificial Intelligence (AI) and resilient labor markets provide structural buffers, businesses face tighter financial conditions as central banks pause interest rate cuts to combat sticky inflation.
Key Macroeconomic Indicators:
Global GDP Growth: Projected between 2.5% (UN DESA) and 3.1% (IMF), reflecting a widespread cooling in economic activity due to surging production and freight costs.
Global Inflation: Headline inflation has ticked back up to an estimated
4.4%, driven by volatile energy, food, and supply chain premiums.
Monetary Policy: The "higher-for-longer" interest rate environment persists. Central banks have paused easing cycles to anchor resurgent inflationary expectations.
Overall, global growth remains resilient but below its historical average. While AI-driven investment and accommodative financial conditions have helped offset the impact of tariffs and geopolitical risks, renewed inflationary pressures-particularly from elevated energy prices and volatile financial markets-have added to uncertainty surrounding the global macroeconomic and financial environment. Reflecting these mixed dynamics, multilateral institutions have offered differing assessments.
B. INDIAN ECONOMIC OUTLOOK
I. Economic Performance in FY 2025-26
In FY26, India remained the fastest-growing major economy, with growth accelerating to 7.6%, up from 7.1% in FY25, despite heightened global trade tensions. The Growth acceleration was due to robust domestic demand supported by low inflation, income tax and Goods and Services Tax (GST) cuts, and more accommodative monetary conditions. On the supply side, growth was supported by robust performance of manufacturing and services. The current account deficit stood at 1% of GDP, and fiscal consolidation continued, bringing the general government deficit to 7.4% of GDP. Employment rates remained stable, and formal job creation strengthened.
Nominal GDP, measured at current prices, is projected to expand by 8.6% during FY 2025–26. The manufacturing sector has emerged as a key driver of this performance, registering double-digit growth in both FY 2023–24 and FY 2025–26. The secondary and tertiary sectors have further reinforced economic momentum, each recording growth rates exceeding 9.0% in FY 2025–26. Indias sustained economic progress is also evident in the quarterly estimates. Real GDP at constant prices for the Q3 FY 2025-26 is estimated at Rs84.54 lakh crore, reflecting a growth of 7.8%. This marks a steady acceleration from 7.1% in Q3 FY 2023–24 and 7.4% in Q3 FY 2024–25, underscoring the continued resilience and strengthening of the Indian economy.
Headline inflation averaged 1.9% between April 2025 and February 2026, compared to 4.7% in the same period of the previous year. This decline was primarily driven by falling food prices. Wholesale price inflation (WPI) averaged 0.4% in April 2025- February 2026, compared to around 2.3% in the same period of FY25, due to a sustained decline in food and fuel prices.
The Reserve Bank of India (RBI) cut the policy rate by a cumulative 125 basis points (bps) between February and December 2025, down to 5.25%. Moderating inflation created room for monetary easing, allowing policy rate cuts to support growth amid trade policy uncertainty. However, the RBI changed its monetary policy stance from "accommodative" to "neutral" in June 2025, citing reduced room for additional growth support. The RBI viewed the scope for further rate cuts as limited, given earlier front-loaded monetary support-100 bps cuts between February and June, ample liquidity, and risks of currency depreciation and capital outflows.
The current account deficit (CAD) narrowed to 1% of GDP in the first three quarters of FY26 (from 1.3% over the same period of the previous year). Strong inward remittances and a larger services trade surplus more than compensated for a modest widening of the merchandise trade deficit. Despite U.S. tariffs, merchandise export growth picked up slightly year over year, while imports grew faster.
Labor force participation and employment rates remained stable across demographic groups, notwithstanding a modest uptick in female participation in rural areas. Growth in net new employees Provident fund (EPF) subscribers, which captures formal employment creation, accelerated to nearly 14% YoY in April–July of FY26, compared to about 12% the previous year. The launch of the Pradhan Mantri Viksit Bharat Rojgar Yojana, the replacement of MGNreGa with the Viksit-Bharat Guarantee for Rozgar and Ajeevika Mission Gramin Act (VB-GraMG), and the adoption of four simplified Labor Codes signaled the governments commitment to support the creation of more and better jobs.
Against a backdrop of global trade uncertainty, Indias total exports (merchandise and services) reached a record USD 825.3 billion in FY 2024-25, with continued momentum in FY 2025-26. Despite heightened tariffs imposed by the United States, merchandise exports grew by 2.4% (April–December 2025), while services exports increased by 6.5%. Merchandise imports for April-December 2025 increased by 5.9%. Following the trends in previous years, the rise in merchandise trade deficit has been counterbalanced by an increase in services trade surplus, while the growth in remittances has bolstered this balance. In most years, remittances have surpassed gross FDI inflows, underscoring their importance as a key source of external funding. As a result, the current account deficit remains moderate at 0.8% of GDP in H1 FY26.
Within the capital account, gross FDI inflows continued to rise significantly, growing by 16.1% YoY in April-November 2025. While repatriation flows have marginally declined by 4.2%, an increase in FDI by India abroad of 34.9% over this period capped the growth in net FDI. Moreover, foreign portfolio investments have experienced fluctuations, with three months of sizable net inflows and six months of net outflows from April to December 2025, resulting in a modest net outflow of USD 3.9 billion as of December 2025, compared to net inflows of USD 10.6 billion in the corresponding period of the previous year. FPI flows this year have been tepid due to elevated uncertainty and increased interest in AI-related financial investments in countries such as the US, Taiwan, and Korea. As a result, there was a balance of payments (BOP) deficit of USD 6.4 billion in H1 FY26 compared to a surplus of USD 23.8 billion in H1 FY25, which was funded by a decline in foreign exchange reserves.
The Central Government stuck to its fiscal consolidation target, and the states combined deficit remained stable, resulting in a consolidation of the general government deficit from 7.7% of GDP in FY25 to 7.4% in FY26. Revenue growth remained strong, as a sharp increase in non-tax revenues more than offset the impact of personal income tax changes and the rationalization of GST. Nominal growth in current and capital spending was modest. However, the debt-to-GDP ratio rose slightly from 84.1% in FY25 to 84.5 % in FY26 due to weak nominal GDP growth. The fiscal deficit as a share of GDP and the debt-to-GDP ratio were also revised upwards following the downward revision of nominal GDP due to the GDP rebasing.
II. Economic Prospects for FY 2026-27
As per the new GDP series with base year 2022–23, real GDP growth for FY 2025–26 is estimated at 7.6%, underscoring the strong underlying momentum in economic activity. Growth has been supported by robust consumption and investment, aided by supportive policy measures, ongoing structural reforms, and favourable financial conditions. Going forward, elevated energy and other commodity prices, along with disruptions to the availability of key inputs arising from tensions in the Middle East, are likely to weigh on growth in FY 2026–27.
Nonetheless, the Government has taken proactive measures to ensure the availability of critical inputs across key sectors, thereby mitigating the impact of supply chain disruptions. At the same time, sustained momentum in the services sector, the continued positive effects of GST rationalisation, and healthy balance sheets of financial institutions and corporates are expected to provide support to economic activity. Prospects for the agricultural sector remain favourable, supported by healthy reservoir levels. Business sentiment remains optimistic, with leading indicators pointing to continued resilience in manufacturing and services. Furthermore, the Governments continued emphasis on scaling up domestic manufacturing across strategic and frontier sectors augurs well for Indias medium-term growth outlook.
On the demand side, private consumption in FY 2026–27 is expected to be supported by discretionary spending. Rural demand remains robust and is likely to strengthen further on the back of favourable agricultural conditions and a healthy labour market. Urban consumption is also expected to gain traction, supported by the beneficial effects of GST rationalisation and buoyant activity in the services sector. While the Governments focus on infrastructure spending continues, a revival in private sector investment is expected to be sustained by high capacity utilisation, strong credit growth, and benign financial conditions. On the external front, merchandise exports could face headwinds from disruptions to key shipping routes, elevated freight and insurance costs, and weaker global demand stemming from the ongoing conflict. However, recent trade agreements may provide some offset, while services exports are expected to remain resilient.
Taking these factors into account, real GDP growth for FY 2026–27 is projected at 6.9%, with quarterly growth estimated at 6.8% in Q1 FY 2026-27, 6.7% in Q2 FY 2026-27, 7.0% in Q3 FY 2026-27, and 7.2% in Q4 FY 2026-27. However, further escalation and wider spillovers from the conflict, heightened global financial market volatility, and adverse weather-related events pose risks to the growth outlook. Overall, risks to the baseline projections remain tilted to the downside, with uncertainty elevated amid the ongoing West Asia conflict.
A prolonged conflict in the Middle East that continues to disrupt shipments or damage critical energy infrastructure could keep oil and natural gas prices elevated for a longer period and raise fertilizer input costs. Although India can absorb temporary shocks, its reliance on energy imports from the region leaves the external balance, inflation, and fiscal position vulnerable to an extended Middle East conflict. A disrupted labor market in Gulf economies (the origin for nearly 38% of Indias remittance inflows) would lower the secondary income surplus. These factors would put additional pressure on the rupee. Fiscal risks would also rise if measures to limit fuel prices pass-through to consumers-such as excise rate cuts and increased subsidies are scaled up. Although energy-source diversification and policy buffers could mitigate the impact, persistently high global energy prices would eventually lead to higher retail inflation and weigh on domestic demand.
Although Indias macroeconomic buffers and policy interventions provide some insulation against downside risks, energy diversification, prudent fiscal management, and trade liberalization remain critical priorities. The conflict underscores the urgency of diversifying energy supplies, accelerating the transition to renewables, and maintaining a credible fiscal consolidation path. Advancing trade diversification through the implementation of recently concluded FTAs and the negotiation of new ones will also strengthen Indias resilience in an increasingly fragmented global trade environment
2. INDUSTRY STRUCTURE AND DEVELOPMENTS
A. CAPITAL MARKET
Exchanges are organized markets designed to provide centralized facilities for the listing and trading of financial instruments, including securities issued by companies, sovereigns, and other entities to raise capital. Exchanges are crucial market intermediaries and are supervised by SEBI. In certain cases, exchanges may also act as a self-regulatory organization responsible for supervising their members, corporates, and market participants. To give an overview of the dimension of the capital markets in India, as of FY 2025-26 there were 3 Stock Exchanges in the Equity Cash, Equity derivatives and Currency Derivatives Segment and 4 in the Commodities Derivatives Segment, 4 Clearing Corporations, 2 Depositories, 12,134 (as of Feb 2026) Foreign Portfolio Investors (FPIs), and 17 Custodians, with a market capitalization of all listed companies at Rs412 trillion.
A Stock Exchange is a catalyst for nation building and not just a trading platform. A vibrant capital market is a large job creator with the number of intermediaries required to support each trade. The Exchange ecosystem supports various intermediaries including brokers, corporates, banks, depositories, depository participants, custodians, and investors. The Stock Exchange industry in India has evolved rapidly in the past few years and spans multi asset classes – equities, equity derivatives, currency derivatives, commodity derivatives, ETF, mutual funds, debt, interest rate derivatives and power trading.
B. MAJOR POLICY DEVELOPMENTS FOR FY 2025-26
| Date | Title |
| 25-03-2026 | Clarification regarding eligibility of members of the Institute of Cost Accountants of India to conduct annual audit of Research Analysts |
| 25-03-2026 | Clarification regarding eligibility of members of the Institute of Cost Accountants of India to conduct annual audit of Investment Advisers |
| 23-03-2026 | Ease of doing business measures - Relaxations in certain reporting requirements for certain Stock Brokers and doing away with the requirement of reporting of demat account |
| 16-03-2026 | Review of Coverage of Settlement Guarantee Fund for Commodity Derivatives Segment |
| 13-03-2026 | Borrowing by Mutual Funds |
| 11-03-2026 | Ease of Doing Business – Relaxation in certification requirement for Persons Associated with Research Services (PARS) – Sales and other non-core services |
| 06-03-2026 | Introduction of Voluntary Lock-in / Debit freeze facility to Mutual Fund folios |
| 27-02-2026 | Revised Norms for appointment of an independent third-party reviewer/ certifier for green debt security |
| 26-02-2026 | Ease of Doing Investment (EoDI)- Disclosure of registered name and registration number by SEBI regulated entities and their agents on Social Media Platforms (SMPs) |
| 26-02-2026 | Valuation of physical Gold and Silver held by mutual fund schemes |
| 26-02-2026 | Categorization and Rationalization of Mutual Fund Schemes |
| 17-02-2026 | Circular on Forms for registration of stock brokers and clearing members |
| 13-02-2026 | RBI final Amendment Directions on Capital Market Exposure |
| 11-02-2026 | Capacity Planning and Real Time Performance Monitoring framework for Commodity Derivatives Segment of Market Infrastructure Institutions (MIIs) |
| 10-02-2026 | Obligations on CRAs while undertaking rating of financial instruments falling under the purview of any other Financial Sector Regulator |
| 06-02-2026 | Reporting of value of units of Alternative Investment Funds (AIFs) to Depositories |
| 05-02-2026 | Creation/Invocation of pledge of securities through depository system. |
| 05-02-2026 | Review of Calendar Spread margin benefit in Single stock derivatives on expiry day |
| 04-02-2026 | Revision of Order-to-Trade Ratio (OTR) framework |
| 01-02-2026 | STT on futures transactions was increased from 0.02% to 0.05%. Similarly, the STT on options premium and the exercise of options was raised to 0.15% from the existing rates of 0.10% and 0.125%, respectively. |
| 01-02-2026 | Introduction of market making framework with suitable access to funds and derivatives on corporate bond indices. |
| 30-01-2026 | Ease of Doing Investment and Ease of Doing Business – Doing away with requirement of issuance of Letter of Confirmation ("LOC") and to effect direct credit of securities in dematerialisation account of the investor |
| 30-01-2026 | Ease of Doing Investment – Special Window for Transfer and Dematerialisation of Physical Securities |
| 16-01-2026 | Introduction of Closing Auction Session (CAS) in the Equity Cash Segment and certain modifications in the Pre-Open Auction Session |
| Date | Title |
| 16-01-2026 | Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI)" framework for FPIs and FVCIs |
| 09-01-2026 | Review of Framework to address the ‘technical glitches in Stock Brokers Electronic Trading Systems |
| 09-01-2026 | Simplification of requirements for grant of accreditation to investors |
| 08-01-2026 | Compliance Reporting Formats for Specialized Investment Funds (SIFs) |
| 07-01-2026 | Extension of timeline for implementation of additional incentives structure for distributors for onboarding new individual investors from B-30 cities and women investors |
| 02-01-2026 | Specification of the consequential requirements with respect to Amendment of Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 |
| 30-12-2025 | Certification requirement for Compliance Officers of Managers of AIFs |
| 24-12-2025 | Ease of doing investment - Review of simplification of procedure and standardization of formats of documents for issuance of duplicate certificates |
| 24-12-2025 | Ease of investments and ease of doing business measures – enhancing the ‘Facility for Basic Services Demat Account (BSDA) |
| 18-12-2025 | Modification in the conditions specified for reduction in denomination of debt securities |
| 16-12-2025 | Mandating periodic disclosure requirements- Securitised Debt Instruments (SDIs) |
| 12-12-2025 | Provisions relating to Strengthening Governance of Market Infrastructure Institutions (MIIs) |
| 11-12-2025 | Deferment of timeline for implementation of Phase III of Nomination Circular dated January 10, 2025 read with Circular dated February 28, 2025 and July 30, 2025 |
| 10-12-2025 | Relaxation on geo tagging requirement in India for NRIs while undertaking re-KYC |
| 08-12-2025 | Modalities for migration to AI only schemes and relaxations to Large Value Funds for Accredited Investors under SEBI (Alternative Investment Funds) Regulations, 2012 |
| 08-12-2025 | Clarification on the Digital Accessibility circulars of SEBI |
| 28-11-2025 | Reclassification of Real Estate Investment Trusts (REITs) as equity related instruments for facilitating enhanced participation by Mutual Funds and Specialized Investment Funds (SIFs) |
| Date | Title |
| 27-11-2025 | Additional incentives to distributors for onboarding new individual investors from B-30 cities and women investors |
| 25-11-2025 | Specification of the terms and conditions for Debenture Trustees for carrying out activities outside the purview of SEBI |
| 25-11-2025 | Modifications to Chapter IV of the Master Circular for Debenture Trustees dated August 13, 2025 |
| 25-11-2025 | Timeline for submission of information by the Issuer to the Debenture Trustee(s) |
| 30-10-2025 | Implementation of eligibility criteria for derivatives on existing Non-Benchmark Indices |
| 30-10-2025 | Ease of doing business – Interim arrangement for certified past performance of Investment Advisers and Research Analysts prior to operationalisation of Past Risk and Return Verification Agency ("PaRRVA") |
| 30-10-2025 | Ease of doing business measures - Enabling Investment Advisers ("IAs") to provide second opinion to clients on assets under pre-existing distribution arrangement |
| 30-10-2025 | Further extension of timeline for mandatory implementation of systems and processes by Qualified Stock Brokers (QSBs) with respect to T+0 settlement cycle |
| 24-10-2025 | Transfer of portfolios of clients (PMS business) by Portfolio Managers. |
| 15-10-2025 | Relaxation in timeline for disclosure of allocation methodology by Angel Funds |
| 13-10-2025 | Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions |
| 08-10-2025 | Review of Block Deal Framework |
| 30-09-2025 | Extension of timeline for implementation of SEBI Circular dated February 04, 2025 on ‘Safer participation of retail investors in Algorithmic trading |
| 25-09-2025 | Compliance Guidelines for Digital Accessibility Circular ‘Rights of Persons with Disabilities Act, 2016 and rules made thereunder- mandatory compliance by all Regulated Entities dated July 31, 2025 (Circular No. SEBI/HO/ITD-1/ITD_VIAP/P/ CIR/2025/111) |
| 19-09-2025 | Ease of doing investment - Smooth transmission of securities from Nominee to Legal Heir |
| 19-09-2025 | Framework on Social Stock Exchange |
| 10-09-2025 | Revised regulatory framework for Angel Funds under AIF Regulations |
| 10-09-2025 | Ease of regulatory compliances for FPIs investing only in Government Securities |
| 09-09-2025 | Framework for AIFs to make co-investment within the AIF structure under SEBI (Alternative Investment Funds) Regulations, 2012 |
| 09-09-2025 | Format of Disclosure Document for Portfolio Managers |
| 05-09-2025 | Streamlining of the process for surrender of (Know Your Client) Registration Agency (KRA) registration |
| 01-09-2025 | Framework for Intraday Position Limits Monitoring for Equity Index Derivatives |
| 29-08-2025 | Extension of timelines and Update of reporting authority for IAs and RAs w.r.t. SEBI Circular for Compliance to Digital Accessibility Circular ‘Rights of Persons with Disabilities Act, 2016 and rules made thereunder- mandatory compliance by all Regulated Entities dated July 31, 2025 (Circular No. SEBI/HO/ITD-1/ITD_VIAP/P/CIR/2025/111) |
| 28-08-2025 | Technical Clarifications to Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs) |
| 26-08-2025 | Relaxation in the timeline to submit net worth certificate by the Stock Brokers to offer margin trading facility to their clients |
| 18-08-2025 | Extension of timeline for implementation of SEBI Circular ‘Margin obligations to be given by way of pledge/Re-pledge in the Depository System dated June 03, 2025 |
| 12-08-2025 | Use of liquid mutual funds and overnight mutual funds for compliance with deposit requirement by Investment Advisers and Research Analysts |
| 08-08-2025 | Transaction charges paid to Mutual Fund Distributors |
| 08-08-2025 | Review of Framework for conversion of Private Listed InvIT into Public InvIT |
| 07-08-2025 | Ease of doing business (EODB) - Policy for joint annual inspection by MIIs – information sharing mechanism– action by Lead MII |
| 05-08-2025 | Review, Appeal or Waiver of penalty requests emanating out of actions taken by the Member Committee |
| 31-07-2025 | Rights of Persons with Disabilities Act, 2016 and rules made thereunder- mandatory compliance by all Regulated Entities |
| 30-07-2025 | Extension of timeline for implementation of Phase II & III of Nomination Circular dated January 10, 2025 read with Circular dated February 28, 2025 |
| 29-07-2025 | Operational Efficiency in Monitoring of Non- Resident Indians (NRIs) Position Limits in Exchange Traded Derivatives Contracts - Ease of Doing Investment |
| 29-07-2025 | Extension of timeline for implementation of SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD/P/ CIR/2025/0000013 dated February 04, 2025 |
| 29-07-2025 | Monitoring of Minimum Investment Threshold under Specialized Investment Funds (SIF) |
| 23-07-2025 | Frequently Asked Questions (FAQs) related to regulatory provisions for Research Analysts |
| 02-07-2025 | Ease of Doing Investment - Special Window for Re- lodgement of Transfer Requests of Physical Shares |
| 30-06-2025 | Extension towards Adoption and Implementation of Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs) |
| 26-06-2025 | Industry Standards on "Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions" |
| 26-06-2025 | Timelines for rebalancing of portfolios of mutual fund schemes in cases of all passive breaches |
| 12-06-2025 | Investor Charter Infrastructure Investment Trusts (InvITs) |
| 12-06-2025 | Investor Charter Real Estate Investment Trusts (REITs) |
| 12-06-2025 | Review of provisions relating to Product Advisory Committee (PAC) |
| 11-06-2025 | Adoption of Standardised, Validated and Exclusive UPI IDs for Payment Collection by SEBI Registered Intermediaries from Investors |
| 06-06-2025 | Extension of timeline of additional liquidation period for VCFs migrating to SEBI (Alternative Investment Funds) Regulations, 2012 |
| 05-06-2025 | Framework for Environment, Social and Governance (ESG) Debt Securities (other than green debt securities) |
| 05-06-2025 | Limited relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 |
| 03-06-2025 | Margin obligations to be given by way of Pledge/ Re-pledge in the Depository System |
| 02-06-2025 | Investor Charter for Research Analysts |
| 02-06-2025 | Investor Charter for Investment Advisers |
| 29-05-2025 | Measures for Enhancing Trading Convenience and Strengthening Risk Monitoring in Equity Derivatives |
| 26-05-2025 | Final Settlement Day (Expiry Day) for Equity Derivatives Contracts |
| Date | Title |
| 26-05-2025 | Process for appointment, re-appointment, termination or acceptance of resignation of specific KMPs of an MII and Cooling-off period for KMPs of an MII joining a competing MII and provisions relating to re-appointment of PIDs |
| 23-05-2025 | Accessibility and Inclusiveness of Digital KYC to Persons with Disabilities |
| 19-05-2025 | Norms for Internal Audit Mechanism and composition of the Audit Committee of Market Infrastructure Institutions |
| 16-05-2025 | Review of provisions pertaining to Electronic Book Provider (EBP) platform to increase its efficacy and utility |
| 16-05-2025 | Extension of timeline for implementation of provisions of SEBI circular dated December 17, 2024 on Measures to address regulatory arbitrage with respect to Offshore Derivative Instruments (ODIs) and FPIs with segregated portfolios vis-?- vis FPIs |
| 15-05-2025 | Rating of Municipal Bonds on the Expected Loss (EL) based Rating Scale |
| 14-05-2025 | Investor Charter for Registrars to an Issue and Share Transfer Agents (RTAs) |
| 14-05-2025 | Composition of the Internal Audit team for CRAs |
| 13-05-2025 | Simplification of operational process and clarifying regarding the cash flow disclosure in Corporate Bond Database pursuant to review of Request for Quote (RFQ) Platform framework. |
| 13-05-2025 | Extension of timeline for complying with the certification requirement for the key investment team of the Manager of AIF |
| 07-05-2025 | Review of - (a) disclosure of financial information in offer document, and (b) continuous disclosures and compliances by Real Estate Investment Trusts (REITs) |
| 07-05-2025 | Review of - (a) disclosure of financial information in offer document / placement memorandum, and (b) continuous disclosures and compliances by Infrastructure Investment Trusts (InvITs) |
| 06-05-2025 | Publishing Investor Charter for KYC (Know Your Client) Registration Agencies (KRAs) on their Websites. |
| 02-05-2025 | Measure for Ease of Doing Business - Facilitation to SEBI registered Stock Brokers to undertake securities market related activities in Gujarat International Finance Tech-city - International Financial Services Centre (GIFT-IFSC) under a Separate Business Unit (SBU) |
| Date | Title |
| 30-04-2025 | Clarifications to Cybersecurity and Cyber Resilience Framework (CSCRF) for SEBI Regulated Entities (REs) |
| 29-04-2025 | Clarificatory and Procedural changes to aid and strengthen ESG Rating Providers (ERPs) |
| 29-04-2025 | Extension of timeline for implementation of provisions of SEBI Circular dated December 10, 2024, on optional T+0 settlement cycle for Qualified Stock Brokers (QSBs) |
| 28-04-2025 | Timelines for collection of Margins other than Upfront Margins – Alignment to settlement cycle |
| 22-04-2025 | Change in cut-off timings to determine applicable NAV with respect to repurchase/ redemption of units in overnight schemes of Mutual Funds |
| 21-04-2025 | Trading Window closure period under Clause 4 of Schedule B read with Regulation 9 of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 ("PIT Regulations") – Extension of automated implementation of trading window closure to Immediate Relatives of Designated Persons, on account of declaration of financial results |
| 11-04-2025 | Specialized Investment Funds (‘SIF) – Application and Investment Strategy Information Document (ISID) formats |
| 09-04-2025 | Clarification on Regulatory framework for Specialized Investment Funds (‘SIF) |
| 09-04-2025 | Amendment to Circular for mandating additional disclosures by FPIs that fulfil certain objective criteria |
| 04-04-2025 | Standardized format for System and Network audit report of Market Infrastructure Institutions(MIIs) |
| 04-04-2025 | Recognition and operationalization of Past Risk and Return Verification Agency (PaRRVA) |
| 02-04-2025 | Relaxation of provision of advance fee restrictions in case of Investment Advisers and Research Analysts |
| 01-04-2025 | Clarification on the position of Compliance Officer in terms of regulation 6 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 |
| 01-04-2025 | Extension of timeline for formulation of implementation standards pertaining to SEBI Circular on "Safer participation of retail investors in Algorithmic trading" |
C. INDIAN CAPITAL MARKETS PERFORMANCE AND OUTLOOK
Indias equity markets witnessed a mixed trajectory in FY 2025–26, marked by sharp swings that saw indices touch both record highs and notable lows during the year. Markets eventually closed the financial year on a weaker footing as intensified FII selling pressure coincided with rising global uncertainty, geopolitical tensions, and shifting trade dynamics. The BSE Sensex declined by 4,076.96 points, or 5.36%, over the course of the financial year. In the early months of FY 2025–26, domestic equities were supported by strong macroeconomic fundamentals.
Key drivers included robust economic growth, moderated inflation, cumulative policy rate cuts of 125 basis points by the Reserve Bank of India, and GST rate reductions, all of which helped sustain positive investor sentiment. However, this momentum reversed following the escalation of geopolitical tensions, particularly after the outbreak of the Middle East conflict in early March 2026, which dampened global risk appetite. Amid rising global protectionism and trade barriers, India continued to advance its trade diplomacy during 2025, concluding multiple free trade agreements to diversify export markets and strengthen economic resilience. Despite these efforts, global headwinds weighed on market performance.
Looking ahead, the growth outlook for FY 2026–27 remains constructive, contingent upon an easing of geopolitical risks and the continued resilience of corporate earnings. Nevertheless, the near-term risk–reward balance remains skewed toward caution. The macroeconomic environment is still fragile, and currency weakness may persist as long as geopolitical tensions and elevated energy prices continue to exert pressure. Until there is greater clarity on crude oil prices and the direction of FII flows, equity markets are expected to remain volatile and largely range-bound in the new financial year.
3. CAPITAL MARKETS
A. OVERVIEW
BSE is the worlds largest stock exchange in terms of number of companies listed. As of March 31, 2026, BSE is ranked #8 by market capitalization among global stock exchanges, with a total market capitalization of Rs412 lakh Crores. As of March 31, 2025, BSE was ranked #7 globally.
B. PRIMARY MARKET
The total number of companies listed on BSE as on March 31, 2026, was 5,663 as compared to 5,452 as on March 31, 2025.
In FY 2025-26, Indian Investors showed faith in investing funds in Indian corporate sector primarily via the BSE fund raising platforms. Rs 17.52 lakh Crores (USD 187.5 bn*) worth of funds was mobilized through listing of Equity, Bonds, REITs, InvITs, Debt securities, etc.
I. Main Board
During FY 2025-26, 109 companies tapped the market through the IPO process to get listed on the Mainboard of BSE. The amount raised through Mainboard IPOs in FY-2025-26 was Rs1,77,101.97 Crores as against Rs1,62,516.76 Crores in FY 2024-25. Additionally in FY 2025-26, 2 companies raised Rs 6,400 Crores through InVITs and 2 companies raised
Rs 5,272.97 Crores through REITs.
With respect to debt capital, the total amount mobilized through Privately Placed Debt Instruments ("PPDI") at BSE in FY 2025-26 was
Rs 5,58,827 Crores as against Rs 6,25,331 in FY 2024-25. During FY 2025-26 there were 20 debt public issues, which mobilized Rs 11,361 Crores as against 41 debt public issues, which mobilized Rs8,466 in FY 2024- 25.
The total amount mobilized through Commercial Paper ("CP") at BSE in FY 2025-26 was Rs7,23,337 Crores and in the FY 2024-25 was Rs8,03,428 Crores.
II. BSE SME Platform
The BSE SME platform was launched on March 13, 2012 to serve small and medium-sized enterprises (SMEs). Since inception till FY26, 712 SMEs have been listed on the BSE SME platform raising Rs15,388.09 Crores. During FY 2025-26, the BSE SME platform witnessed over 100 listings in a financial year for the first time with 146 listings as compared to 78 listings in FY 2024-25 indicating a Y-o-Y growth of 87.18%. Further, in terms of funds raised, Rs 6,312.50 Crores was raised in FY 2025-26 as compared to Rs 2,700.58 Crores funds raised in FY 2024-25 indicating a Y-o-Y growth of 133.75%. BSE SME IPO Index was launched on December 14, 2012, with 100 as the base. On March 31, 2026, the value of this index reached 74,111.50. The total market capitalization of the companies listed on BSE SME Platform (excluding migrated companies) as on March 31, 2026 was Rs70,420.44 Crore.
Migration to Main Board
During FY 2025-26, 9 SMEs migrated to the BSE Main Board from BSE SME platform as compared to migration of 8 SMEs in FY 2024-25. The total number of SMEs that have migrated from the BSE SME platform to the Main Board is 200.
In FY 2025-26, migration criteria were revised to provide a pathway for SMEs to grow to a particular size before migrating. It also ensures that SMEs migrating to the main board have better operational performance track record.
III. Mutual Fund Segment:
The BSE StAR MF platform continues to be Indias largest Mutual Fund Distribution Infrastructure with more than 85% of market share by number of transactions amongst exchange-based platforms in the Indian Mutual Fund Industry. In FY 2025-26, BSE StAR MF processed 84.1 Crore transactions witnessing 26.8% YoY growth, vis-a-vis 66.3 Crore transactions in FY 2024-25. The platform also registered 2,951 new members, taking the total strength of the network to over 83,000 distributors in India. BSE signed a Memorandum of Understanding (MoU) with the Department of Posts (DoP) on December 12, 2025, for mutual fund distribution through India Posts vast network.
New SIPs Registration:
In FY 2025-26, BSE StAR MF registered 4.74 Crore new SIPs vis-a-vis 4.68 Crore new SIPs in FY 2024-25.
Product Offerings
BSE launched StAR MF 2.0 in FY 2025-26, a ground-up rebuild of its mutual fund distribution platform, designed to be more robust, scalable and configurable to meet the evolving needs of Indias growing distributor ecosystem.
BSE StAR MF is well poised to capture the increasing participation of investors in Mutual Funds, it has boosted the mutual funds distribution for traditional distributors as well as new age platforms (Mobile APP/ Website), expanding the distributors network of FinTech, MFDs, Banks, PMS, brokers, broker branches and associates across India.
Platform is accessible via all three channels, Web Portal, Modular APIs and Mobile APP.
In addition to Lumpsum and SIP transactions, the platform supports specialized mutual fund offerings such as SWP (Systematic Withdrawal Plan), STP (Systematic Transfer Plan), and the Smart Switch Facility, with the recent introduction of StepUp SIP. During FY 202526, Specialized Investment Funds (SIFs) with a minimum investment of
Rs10 lakh were introduced, with nine SIFs enabled on the BSE StAR MF platform, making it the first exchange based platform to offer SIFs. The platform also onboarded five new Asset Management Companies (AMCs) during the year, taking the total to 50.
Moreover, it supports all types of schemes to be transacted (Direct Regular Plans) in Demat as well as Non Demat (SOA) mode.
To make it convenient for the investor, StAR MF supports creation of mandates using NACH, eNACH and UPI modes, which can be used as a recurring payment option against the multiple SIPs registered for an investor.
IV. Green Bonds
The total amount mobilized by private corporates through Green Bonds at BSE in FY 2025-26 is Rs.10,250 Crores as against FY 2024-25 is Rs 825 Crore.
C. SECONDARY MARKET
I. Equity Cash Segment ("ECM")
The BSE SENSEX ended FY 2025-26 at 71,947.55 compared to 77,414.92 at year end of FY 2024-25, a decrease of 7.06% over the year. The average daily value of equity turnover on BSE in FY 2025-26 was Rs 7,950 Crore, a Y-o- Y increase of about 2.36% from Rs 7,766 Crore in FY 2024-25. The total turnover for year stood at Rs 19.6 Lakh Crore.
II. Equity Derivatives Segment ("EDX")
In FY 2025-26, the daily average turnover in Futures was Rs 342 Crore,
Rs 1,87,15,375 in Options Notional Turnover and Rs19,523 Crore in Options
Premium Turnover as compared to Rs 207 Crore in Futures , Rs1,10,66,674 in Options Notional Turnover and Rs 8,978 Crore in Options Premium Turnover in FY 2024-25.
BSE received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch derivatives contracts on two new indices: the BSE Sensex Next 30 and the BSE Focused Midcap Index.
III. Currency Derivatives Segment ("CDX")
In CDX, turnover was Nil as compared to the daily average turnover of
Rs 1,525.34 Crore for FY 2024-25 .
IV. Debt Market Segment ("DMS")
BSE witnessed reporting of Over the Counter ("OTC") trades in Corporate Bonds on New Debt Segment – Reporting, Settlement and Trading (NDS- RST) platform worth Rs 10,06,087 Crore in FY 2025-26 as against Rs 7,19,987 Crore in FY 2024-25. In FY 2025-26, BSEs market share was 27% for Corporate Bonds Reporting. In case of Statutory Liquidity Ratio ("SLR") securities i.e. Government Securities and Treasury Bills, trades worth Rs 3,48,737 Crore were reported on NDS-RST in FY 2025-26 as against Rs 3,09,637 Crore in FY 2024-25 and BSEs market share is 39% for FY 2025- 26 for reporting of Government securities.
Trading in Non-Convertible Debentures ("NCDs") and Bonds on ‘F group of BSEs equity platform saw volume of Rs 6,759 Crore in FY 2025-26 as against Rs 4,338 Crore in FY 2024-25 and BSEs market share has increased to 79% for FY 2025-26 as compared to 74% for FY 2024-25 for the retail trading of Corporate Bonds.
The settlement volume for corporate bonds witnessed business of
Rs2,97,042 Crore in FY 2025-26 as against Rs 1,91,569 Crore in FY 2024-25. BSEs market share is 15% for FY 2025-26 for corporate bond settlement.
BSE launched Request for Quote (RFQ) platform for execution and settlement of trades in NDS-RST system after receiving the markets regulator SEBIs approval w.e.f February 3, 2020. Total Volume in RFQ platform of BSE was Rs 50,853 Crore for FY 2025-26 as compared to
Rs 43,799 Crore for FY 2024-25. Total number of trades on BSE for FY 2025-26 was 2,04,763 on the RFQ platform, while in FY 2024-25 the number of trades were 88,032.
V. Non – Competitive Bidding ("NCB-Gsec")
With regards to Non – Competitive Bidding in Government Securities (G-Sec), State Development Loans (SDL) and Treasury Bills (T-Bills), which allows retail investors to purchase G-Sec, SDL, and T-Bills, for the FY 2025-26, BSE has received bids worth Rs 289 crores through its various bidding platform including bids received through mobile app called "BSE Direct".
VI. Exchange Traded Funds ("ETF")
As on March 31, 2026, BSE had 244 ETFs listed on its platform, as compared with 174 as on March 31, 2025. The average daily turnover in ETF was Rs 290.41 crores as compared to Rs 52.52 crores.
VII. Offer for Sale ("OFS") & Offer to Buy ("OTB")
During FY 2025-26, the OFS segment recorded 39 issues, an increase from 26 issues in FY 2024-25, reflecting heightened secondary market activity and increased promoter monetisation. BSE was appointed as the Designated Stock Exchange in 25 issues (64%), compared to 16 issues (61%) in the previous year, indicating strengthening of BSEs competitive positioning. While the number of exclusive OFS issues on the BSE platform remained stable at 9, the aggregate mobilisation moderated to Rs13,647 Crore in FY 2025-26 from Rs17,531 Crore in FY 202425, largely attributable to smaller average issue sizes and a shift towards more diversified stake sales rather than few largeticket transactions.
The OTB segment witnessed significant growth in FY 2025-26, with 143 issues as against 121 issues in FY 2025-26, underscoring increased corporate actions related to buybacks, takeovers, and delisting activities. BSE was appointed as the Designated Stock Exchange in 124 issues (87%), broadly in line with 107 issues (88%) in the previous year, thereby maintaining its dominant market share.
Importantly, exclusive OTB executions on the BSE platform increased to 115 issues from 92 issues, accompanied by a rise in total subscription value to Rs11,919 Crore from Rs9,430 Crore, reflecting both higher deal volumes and improved transaction value.
VIII. Securities Lending & Borrowing ("SLB")
The turnover for the first leg of SLB transactions stood at Rs10,571 crore, registering a rise of 237% as compared to Rs3140 crore in the previous fiscal & the aggregate lending fees reported by market participants rose significantly by 61.26%, increasing from Rs31 crore earned in FY 2024-25.
Rs in Crore
| Segment | FY 2025-26 | FY 2024-25 |
| Turnover for the period – 1st Leg of | 10,571 | 3140 |
| SLB transactions | ||
| Lending fees | 50.6 | 31 |
IX. Startups platform
BSE launched the Startups platform on 22nd December 2018.
Till March 31, 2026 14 companies have been listed on BSE Startups Platform, of which 1 company got migrated to the mainboard. The market capital of the companies listed on the BSE Startups platform (excluding the migrated company) as on March 31, 2026 was Rs 1,030.90 Crore.
D. INDIA INTERNATIONAL EXCHANGE (IFSC) LIMITED (INDIA INX)
The notional trading turnover on INDIA INXs derivatives for FY 2025-26 is USD 4.30 Billions. The cumulative notional trading turnover since inception as of March 31, 2026, is 8.95 trillion. India INX is positioning itself as the preferred offshore gateway to India through innovation, advanced technology, a favorable regulatory and tax framework, and strong customer service. It continues to enhance market depth by engaging global investors and has launched new products and will continue to innovate and launch products to stay competitive globally.
As outlined by our Honble Prime Minister Shri. Narendra Modiji, one of the primary goals of India INX is to help companies across the globe to raise funds through capital markets which can be deployed for the growth and development needs of the Company, leading to employment generation and overall economic development. Keeping this in mind, India INX launched the Global Securities Market Platform, which is a pioneering concept in India, offering issuers an efficient and transparent method to raise capital. The platform offers a debt listing framework at par with other global listing venues such as London, Luxembourg, Singapore etc. To date, India INX maintains more than 90% market share in the listing of Debt Securities in GIFT IFSC with the MTN programmes established around_USD 88 billion and around_USD 64 billion_of bonds listed.
KEY MILESTONES ACHIEVED, MAJOR EVENTS AND GROWTH STRATEGY OF INDIA INX DURING F.Y. 2025-26:
Indias International Financial Services Centre (IFSC) at GIFT City continued to consolidate its position as a competitive global financial hub, supported by progressive regulatory frameworks, a stable tax regime, and increasing participation from global institutional as well as domestic investors. In FY 2025-26, India INX celebrated 1st Anniversary of the launch of the USDdenominated BSE Sensex derivatives, Indias 40 years old flagship index derivative benchmark onto the international exchange platform and enabling global investors to access the Sensex through an offshore, foreign currency denominated framework.
July 2025 – Permitting the Listing of Foreign Currency Convertible Bonds (FCCBs) in GIFT IFSC – Paisalo Digital Limited: Foreign Currency Convertible Bonds (FCCBs) enable issuers to raise foreign currency capital with an embedded equity conversion option. The Capital Market Regulator in GIFT IFSC jurisdiction, IFSCA, issued a Circular, permitting the listing of FCCBs in GIFT IFSC Jurisdiction. This was facilitated by policy inputs and based on the interaction with stakeholders. India INX submitted a white paper to IFSCA, contributing to the development of the enabling regulatory framework and underscoring India INXs role in advancing marketdriven reforms within the IFSC ecosystem.
In alignment with this circular, Paisalo Digital Limited successfully listed the 1st FCCB on India INX, reinforcing the exchanges role as a key facilitator of international fund raising for Indian corporates while advancing GIFT IFSCs position as a global hub for raising capital.
September 2025 - 1st Sri Lankan Bank Listing – Green Bond: DFCC Bank PLC became the first Sri Lankan bank to list a green bond on India INXs GSM Green platform at GIFT IFSC, through the listing of its LKR 2.5 billion (USD 8.33 million) senior unsecured green bond reinforcing India INXs role as a hub for sustainable finance and crossborder capital raising.
October 2025 – IOSCO World Investor Week, 2025: India INX celebrated the IOSCO World Investor Week, 2025 under the aegis of IFSCA & SEBI from 6th to 10th October 2025. As a part of this global initiative, India INX hosted the Opening Bell Ceremony to mark the official launch of the week-long investor education and protection campaign. During the week, various events were conducted with different industry stakeholders such as Gujarat Chamber of Commerce & Industry (GCCI), GIFT Brokers Association (GBA), Institute of Advanced Research (IAR) and many more to promote the investor awareness and highlighting the role of India INX in GIFT IFSC jurisdiction.
October 2025- India INX Mobile Application: During the year, India INX further strengthened its digital outreach initiatives by launching a dedicated mobile application to provide investors with seamless and convenient access to exchange products. The mobile application was officially introduced during Opening Bell Ceremony of the IOCSO World Investor Week in October 2025 as part of our commitment to promoting financial literacy, enhancing investor awareness, and improving market accessibility. The platform is designed to expand the Exchanges reach and offer users an intuitive interface for realtime trading / investments.
November 2025 - Strategic Infrastructure Issuer Listing: USD 800 million senior secured bonds issued by Mumbai International Airport Limited were listed on India INX in November 2025, underscoring the exchanges capability to support international fundraising by major airport and infrastructure entities.
December 2025 - Implementation of Global Access Framework: Pursuant to the IFSCA Global Access regulatory framework notified in August 2025, India INX Global Access (IFSC) Limited received the requisite approvals from IFSCA in December 2025. India INXGA has fully complied with all guidelines, conditions, and operational requirements prescribed under the Global Access Platform (GAP) Circular issued by IFSCA.
January 2026- Strategic Listing by a Marquee Issuer: Export-Import Bank of India (EXIM Bank) exclusively listed its USD 1 billion foreign currency bond on India INX, marking a significant milestone for the GIFT IFSC ecosystem. This marquee issuance by a premier Government of India institution underscores strong confidence in India INXs leadership and reinforces the Exchanges position as a preferred international listing destination within the IFSC jurisdiction.
February 2026 – Global Securities Markets Conference (GSMC 2.0) and Strategic International Collaborations: The Global Securities Market Conference (GSMC 2.0), held on 26th & 27th February 2026 under the aegis of the International Financial Services Centres
Authority (IFSCA) and hosted by all six Market Infrastructure Institutions (MIIs) in the IFSC jurisdiction, served as a premier platform for dialogue among global regulators, exchanges, market leaders, investors, and industry experts. During the conference, India INX further strengthened its global outreach by entering into strategic Memorandum of Understanding (MoUs) with the Taiwan Stock Exchange (TWSE) and AFRINEX Exchange. These partnerships marked a significant step in expanding international exchange-level collaboration and reinforced India INXs position as a globally connected marketplace operating from GIFT IFSC, while fostering innovation and unlocking new cross-border listing opportunities.
February 2026 - Professional Capacity & Regulatory Alignment – ICSI & ICAI: India INX strengthened the professional and governance ecosystem at GIFT IFSC through strategic MoUs with the Institute of Company Secretaries of India (ICSI) and the Institute of Chartered Accountants of India (ICAI), supporting certification programmes, professional capacity building, and regulatory alignment to underpin the sustainable growth of the IFSC framework.
March 2026 - Pioneering Blue Bond Listing – DFCC Bank PLC:
DFCC Bank PLC listed a Blue Bond on India INXs GSM Green platform in GIFT IFSC, marking an early use of the IFSC framework for ESG Labelled Debt Securities under IFSCA (Listing) Regulations, 2024 and further strengthening India INXs positioning in nextgeneration sustainable finance.
I. MARKETS BUSINESS PERFORMANCE
Growth in the core business segment – India INX Derivatives
India INXs core business of Derivatives has achieved remarkable growth since its launch in January 2017.
The Average Daily Trading Value (ADTV) of India INXs Derivatives was USD 16.87 Mn per day in during the FY 2025-26.
During the FY 2025-26, an overall volume 52,341 Lots.
BSE Sensex Futures traded value since inception stands at USD 4,898.28 million.
Cumulative Trading Turnover of India INX Derivatives has crossed
USD 8.95 trillion as on March 31, 2026, with the cumulative Trading Volume at 538,268,537 contracts (lots).
India INXs Primary Market Platform – Global Securities Markets
India INX has pioneered Indias international primary markets with its Global Securities Market platform, providing a seamless avenue for Indian and global issuers to raise capital from international investors. Since its inception, the platform has established itself as the preferred destination for setting up fundraising programs and listing debt securities in GIFT IFSC. With a strong market presence and industry leadership, India INX continues to drive innovation and growth in global capital markets.
Growth in Listings Business – India INX Global Securities Market
As on March 31, 2026: India INXs Global Securities Market has cumulatively established around USD 88 billion of Medium-Term Notes ("MTN") and listed around USD 64 billion of debt securities including masala bonds and green bonds maintaining the market share of more than 90% in Listing of Debt Securities in GIFT IFSC.
The FY 25-26 witnessed a few significant firsts in GIFT IFSC in form of the listing of first Foreign Currency Convertible Bond (FCCB) on India INX. First listing from DFCC Bank PLC, a Sri Lankan issuer to do the listings of ESG Labelled Securities in the form of Green and Blue Bonds. Also, Marquee issuer like EXIM Bank also chose GIFT IFSC to raise fund and listed USD 1 Billion exclusively on India INX.
During the FY 2025-26, India INX witnessed the listing of securities by 6 new issuers along with 10 repeat issuers listed their securities on India INX. A total of 16 issuances were completed during the year with the total value of the USD 2845.84 Million of the bonds listed on GSM platform
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
India INX Global Access (IFSC) Limited ("India INX GA" or "Global Access")
India INX GA is a pioneering venture and a 100% wholly owned subsidiary of India INX and regulated by IFSCA.
India INX GAs vision is to become the leading provider of financial services by offering centralized access to international financial markets for the benefit of India INXs members from GIFT IFSC and resident Indians under the Liberalised Remittance Scheme (LRS)_route.
Access to International Exchanges
India INX GA, provides a platform for trading in global markets, including Shares, ETFs, Bonds, Mutual Funds & Derivatives. It offers major exchanges of the US, Canada, UK, Europe, Australia, and Japan, covering a significant percent of the investing universe. With access to over 150 exchanges across 33 countries with 23 currencies worldwide covering global exchanges in America, Europe, Asia Pacific and Africa, India INX Global Access is emerging as the preferred platform for India investors to trade in international securities. Some of the exchanges offered are NYSE, Nasdaq, LSEG, Canadian Securities Exchange,
Toronto Stock Exchange, BATs Europe, Euronext France, and Tokyo Stock Exchange.
India INX GA has now tied up with international brokerages viz. Interactive Brokers LLC, Trade Station Group, View Trade IFSC Marex Financial & others to provide access to international exchanges. Further, India INX Global Access is working along with Indian banks and Payment Service Providers (PSPs) to try and bring down the cost of remittance of funds for resident Indian investors under the Liberalised Remittance Scheme (LRS).
| Particulars | FY 2025-26 | FY 2024-25 |
| Business Partners Onboarded | 6 | 5 |
| Client Accounts Opened | 7218 | 863 |
| Traded Value | USD 41.93 Billion | USD 4.94 Billion |
| Traded Quantity (across multiple asset class) | 2,41,35,164 | 1,23,63,969.79 |
| No. of Trades | 279,577 | 186,830 |
Key benefits for India INX GAs clients
Some of the major benefits of trading on India INX GA are as follows:
Access to over 150+ exchanges across 33+ countries with 23+ currencies
Single-window interface to multiple global exchanges
Access to multi-asset class products
Tie up with multiple international brokers
Working along with multiple Indian banks and Payment Service Providers (PSPs) trying to lower remittance charges A centralized single-window interface for trading on international exchanges decreases overall costs of accessing global markets. Technology is a key enabler in the vastly competitive exchange marketspace and India INX GAs clients can access multiple exchange markets.
II. Key Regulatory Developments i. Union Budget 2026-27
The Union Budget 2026-27 includes tax incentives for GIFT Citys IFSC, aiming to attract international investors and businesses. These reforms create meaningful opportunities in cross-border finance, treasury operations, capital-markets activities, compliance advisory, and new product development.
Key Budget Announcements – Direct Relevance to GIFT IFSC a. Extension of the tax holiday for IFSC units
Extension of the tax holiday for IFSC units from 10 years to 20 consecutive years out of a block of 25 years. b. Concessional corporate tax rate of 15%.
It is also proposed that, After the tax holiday period, IFSC units will be taxed at a concessional corporate tax rate of 15%. c. Relief for Global Treasury Centres
The budget also provides an exemption to Global Treasury Centers in IFSC from the deemed dividend provisions. ii. Key regulatory developments Date Title
Jan 02, 2026 Received renewal of Recognition of India INX for period of three year commencing on December 29, 2025 and ending on December 28, 2028 from IFSCA.
Jul 17, 2025 Approval received from IFSCA for change in expiry day of SENSEX and BANKEX contracts.
iii. Key Regulations / circulars issued by IFSCA
| Date | Title |
| Mar 10, 2026 | Amendment to the Circular titled "Guidelines on Cyber Security and Cyber Resilience for Regulated Entities in IFSCs" |
| Mar 02, 2026 | Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or persons seeking guidance under the Informal Guidance Scheme |
| Feb 26, 2026 | Modifications under the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 |
| Feb 13, 2026 | Unified Registration for multiple Capital Market Activities under the IFSCA (Capital Market Intermediaries) Regulations, 2025 (Master Key) |
| Feb 12, 2026 | Format of Net Worth Certificate and Checklist for conducting Audit of GAPs |
| Jan 05, 2026 | Modifications under the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 |
| Dec 31, 2025 | IFSCA (CMI) Regulations, 2025 – Extension of deadline for implementing revised norms for Principal Officer and Compliance Officer |
| Dec 30, 2025 | Computation of liquid net worth under IFSCA (Capital Market Intermediaries) Regulations, 2025 - Clarifications |
| Nov 26, 2025 | Disclosure under Clause 39 of the GAP circular |
| Nov 17, 2025 | Requirement of Certification on AML/CFT for Designated Director and Principal Officer under the IFSCA (AML/ CTF/KYC) Guidelines, 2022 |
| Oct 31, 2025 | Modifications under the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022. |
| Oct 13, 2025 | Governing Board of the Market Infrastructure Institutions (MIIs) |
| Sept 18, 2025 | Clarification on the listing of convertible debt securities on recognized stock exchanges in the IFSC |
| Sept 12, 2025 | Regulatory Framework for Global Access in the IFSC - Amendments |
| Aug 12, 2025 | Regulatory Framework for Global Access in the IFSC |
| Jul 29, 2025 | Framework for Transition Bonds |
| Jun 05, 2025 | Modifications under the International Financial Services Centers Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022 |
| Apr 23, 2025 | Clarifications on the Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme |
| Apr 08, 2025 | Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme |
| Apr 03, 2025 | Direction for all Regulated Entities |
4. BUSINESS OPERATION REVIEW
A. MEMBERSHIP
During FY 2025-2026, 45 Deposit Based Membership ("DBM") applications were received at BSE. Since launch of new DBM scheme in April 2010, BSE has received a total of 1190 DBM applications, as on March 31, 2026.
B. CORPORATE SERVICES (LISTING)
The Corporate Services segment of BSE registered revenue growth in FY 2025-26. Annual Listing Fees (equity, debt, and MF) increased by 8% to
Rs 242 Crore compared to Rs 224 Crore in FY 2024-25. BSE also provides other services to corporates such as book building software, buy-back facilities, reverse book building software, etc. Fees earned from book building software charges were Rs 104 Crore in FY 2025-26 as compared to Rs 95 Crore in FY 2024-25, an increase of 9.47% from the previous year.
C. DATA INFORMATION PRODUCTS
The Company and Deutsche Borse have entered into a partnership in October 2013, under which Deutsche Borse would act as the licensor of the companys market data and information to all international clients. The business for sales and marketing of the companys market data products to international customers by Deutsche Borse commenced from April 2014. Under the co-operation, Deutsche Borse is responsible for sales and marketing of the Companys all market data products to customers outside India, while the Company continues to serve its domestic clients. Deutsche Borse also shares the joint responsibility along with the Company for product development and innovation, which includes extending its existing infrastructure and creation of new market data solutions to support the Companys product offerings on account of IPO, Rights Issues, OTB/OFS issues etc.
The total revenue from the sale of market data and information products was Rs 67.63 Crore in FY 2025-26 as compared to Rs 50.42 Crore in FY 2024-25. The increase in revenue was on account of the addition of new domestic and international customers, along with a revision in international pricing.
D. INDEX
BSE Index Services Private Limited (Formerly Asia Index Private Limited) (BISPL) is a 100% subsidiary of BSE.
BISPLs Income from Index related services increased from Rs 26.87 Crores in FY 2024-25 to Rs 38.76 Crores in FY 2025-26, which is a growth of 44.25%. The Profit before Tax increased from Rs25.56 Crores in FY 2024-25 to Rs 32.13 Crores in FY 2025-26, which is a growth of 26%.
The Authorized Share Capital as on March 31, 2026, was Rs 5 Crores. BISPL declared and paid interim dividend of Rs 15 Crores, equivalent to Rs 75/- per equity share, for the FY 2025-26.
The total assets under management (AUM) of the passive funds (ETFs and Index Funds) linked to BSE Indices was Rs 2,42,114 Crores as on March 31, 2026, as compared to Rs 2,17,741 Crores as on March 31, 2025.
5. SIGNIFICANT DEVELOPMENTS
A. Disclosure of registered name and number by SEBI regulated entities and their agents on Social Media Platforms (SMPs):
To distinguish contents on SMPs related to securities market, uploaded/ posted by regulated entities and their agents, SEBI has directed that w.e.f. May 1, 2026; regulated entities and their agents shall prominently disclose their registered name and number on the home page of their social media handles as well as at the beginning of each of the videos/content (which relate to the securities market) uploaded by them.
B. Review of Framework to address the ‘technical glitches in Stock Brokers Electronic Trading Systems:
The technical glitch framework for stock brokers was revised during the year. The updated framework introduces measures such as excluding smaller brokers from certain requirements, providing exemptions for glitches that do not affect trading or have minimal impact, simplifying reporting processes, and rationalising financial disincentives and technology requirements based on the brokers size and level of technology dependence. The revised framework came into effect on January 9, 2026.
C. Relaxation on geo-tagging requirement in India for NRIs while undertaking re-KYC:
The mandatory geo tagging requirement for non resident Indians (NRIs) was removed on December 10, 2025. Earlier, NRIs had to provide proof of their physical presence in India while completing their re KYC. With this change, NRIs can now complete the entire re KYC process digitally from anywhere in the world. This step aims to make the process more convenient, reduce compliance burdens, and support fully digital and paperless systems.
D. Policy for joint annual inspection by MIIs:
A joint annual inspection process by all Market Infrastructure Institutions (MIIs) was introduced during the year w.e.f. December 1, 2025, replacing the earlier practice where each MII conducted its own separate assessment. This change is aimed at improving ease of doing business, enabling a comprehensive view of an entitys operations across all MIIs, and ensuring better use of resources.
E. Single instruction in the Depositories system of Pledge release for early pay in:
To strengthen the margin pledge and re pledge system used by brokers and investors, several operational improvements were introduced during the year. These include allowing a single instruction to release pledged securities for early pay in, automatically blocking securities for pay-in in the clients demat account when a pledge is invoked/released by broker, and requiring brokers to sell such securities on the same day so they do not accumulate in the brokers demat account. These steps aim to improve transparency, streamline operations, and enhance investor protection. Depositories were asked to implement the same before October 10, 2025.
6. SECONDARY MARKET POLICY DEVELOPMENTS
A. Enhanced Surveillance Measure (ESM)
Recent review with respect to revision of criteria of ESM framework
During the Joint Surveillance Meeting of Exchanges and SEBI held on July 25, 2025, the extant ESM framework applicable on all companies with market capitalization less than Rs 1,000 crores was reviewed and it is decided to revise the ESM framework. The criteria for shortlisting of scrips and the criteria for stage-wise movement under the framework was revised. a) Shortlisting Criteria: In Order to address concerns regarding scrips being shortlisted despite negative price trends, scrips identified solely on the basis of High–Low price variation would be considered for ESM Stage 1 inclusion only if they also exhibit a positive Close-to-Close price variation over the last three months. b) Upper revision criteria: In order to align with valuation-based surveillance practices, scrips are flagged for Stage 2 only if their PE is less than zero or greater than twice the PE of the benchmark index (Nifty 500 / BSE 500). c) Lower Revision: The threshold for downward revision from Stage 2 to Stage 1 is relaxed from 8% to 15% monthly price variation, allowing more scrips to exit Stage 2, thereby getting an opportunity to exit the framework after completion of 90 calendar days.
The changes with respect to update were implemented with effect from July 28, 2025.
B. Introduction of Additional Measure for securities witnessing unusual price movement
To strengthen market surveillance and curb abnormal price movements in certain BSEexclusive securities, the Exchange has introduced an additional control mechanism, effective from November 10, 2025, termed the Additional Measure for securities witnessing Unusual Price Movement (AMS). Under this framework, securities meeting the specified criteria relating to listing group, price level, sustained upper circuit hits, and extreme or negative valuations will be subject to enhanced surveillance measures, including a reduced 1% price band and restricted trading frequency of once a week.
C. Limit Price Protection (LPP) in Equity Derivatives Segment:
As Pre-Trade Risk Control – Limit Price Protection (LPP) in Equity Derivatives Segment was introduced in April 2024 and the same was updated in November 2025 and February 2026. LPP mechanism was implemented to prevent aberrant orders. LPP range shall be the range on both sides of the reference price to validate price of limit orders.
7. REGULATORY
A. SURVEILLANCE & INVESTIGATION I. Statistics for FY 2025-26
As part of market monitoring activities during FY 2025-2026; 37164 surveillance alerts were generated, of which 1,008 alerts were taken up for snap investigations. Subsequently till March 31, 2026, 316 cases were taken up for preliminary/ detailed investigations, of which 156 preliminary/ investigation reports have been forwarded to SEBI.
II. Member Oversight
During FY 2025–26, 434 member inspections were carried out as part of Member Oversight activities. These included 399 routine inspections and 35 inspections jointly conducted with SEBI, other Exchanges, and Depositories. We have also conducted 11 thematic inspections that focused on Technology Governance, such as system and cyber security, along with reviews of technical glitches. In addition to these inspections, we also inspected 597 Authorised Persons, branches, and Remisier associated with the members during the financial year.
III. Investment Advisers (IAs) & Research Analyst (RAs) Supervision
In its capacity as Investment Adviser Administration and Supervisory Body (IAASB) and Research Analyst Administration and Supervisory Body (RAASB), inspections of 84 Investment Advisers and 71 Research Analysts, including joint inspections with SEBI, were conducted during the financial year 2025–26.
IV. Investor Services
The Investor Services Cell provides the following services:
Common Investor Service Centres
SEBI, as a part of enhancing investor experience has initiated opening of additional Investor Service Centres across the country by the Exchanges. It was targeted to have in place 50 such Common Investor Service Centres between the Company and NSE. As a part of this initiative, there shall be only one Investor Service Centre between the two Exchanges at one location, which shall function as the Common Investor Service Centre for both Exchanges as well as SEBI. Accordingly, 13 Common Investor Service Centres are managed by the Company and are fully functional.
Redressal of complaints against trading members
The Company redresses investor complaints against trading members by taking prompt action upon receiving the complaints. In order to strengthen the existing investor grievance handling mechanism SEBI has revised the entire redressal process of grievances in the securities market by providing a comprehensive solution that makes the process more efficient by reducing timelines and by introducing auto-routing and auto-escalation of complaint through online system, by introducing the SEBI Complaints Redressal System ("SCORES 2.0") w.e.f. April 1, 2024. Investor complaints against trading members are received online through the SCORES, web-based system where investors can lodge their complaints online, and the Company in turn communicates the with the parties electronically thereby reducing the communication time resulting in expeditious resolution of investor complaints. The trading members send their reply through SCORES. The investors complaints received directly with the Exchange through email, physical document form is advised to register the same on the SCORES 2.0 system.
Effective August 16, 2023, SEBI has introduced the Online Dispute Resolution ("ODR") mechanism, wherein the Investor Grievance Redressal Mechanism and Arbitration Mechanism administered by the Company has been replaced by the ODR mechanism. In the ODR mechanism, investors can lodge their disputes against SEBI registered intermediaries for resolution through the Conciliation and Arbitration process under the ODR mechanism.
If the investor is not satisfied with the resolution provided by the Trading Member, then the investor may register the complaint/dispute in SMARTODR Portal, for initiating online conciliation and online Arbitration for resolution of his complaint.
As of March 31, 2026, the Company received 493 complaints against Trading Members, of which 487 complaints have been resolved/closed. Out of these 487 complaints, 406 complaints were resolved by the Company, while 81 complaints were referred to the ODR Institution for resolution.
Redressal of complaints against listed companies
The Company redresses investor complaints against listed entities by taking prompt action upon receiving the complaints. Effective April 1, 2024 SEBI has introduced the new SCORES SEBI Complaints Redressal System ("SCORES 2.0"), wherein the complaints filed by Investors against Registrar & Transfer Agent are also assigned to the Company for redressal. The Company takes up the complaint with respective listed entity for resolution.
As of March 31, 2026, the Company has received 1,620 complaints against companies of which 1,542 complaints are resolved / closed and had received 6,029 complaints against Registrar & Transfer Agents of which 5,441 complaints are resolved.
Redressal of complaints against Investment Advisors and Research Analysts
SEBI vide Circular Ref. No. SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2024/101 dated July 12, 2024 has granted recognition to BSE as Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body (IAASB) for a period of five years starting from July 25, 2024.
The Company receives complaints against Investor Advisors (IA) and Research Analysts (RA) through SCORES, and during the FY 2025-26, the Company had received 973 complaints against IA, out of which 951 complaints were resolved / closed and had received 2,582 complaints against RA, out of which 2,545 complaints were resolved / closed.
Online Dispute Resolution (ODR)
Effective August 16, 2023, the company also receives disputes against SEBI registered intermediaries like Mutual Funds, Registrar and Transfer Agents etc. in addition to those against the Trading Members and Listed Companies.
As of March 31, 2026, the Company had received total 2,007 complaints through ODR of which 1,590 complaints were resolved / closed pre- conciliation, and 417 cases were referred to ODR Institute for Online Conciliation and Arbitration.
The Company also conducts orientation program for the Conciliators and Arbitrators in association with NISM. During the year, the Company has conducted 2 such online programs for Conciliators and Arbitrators.
B. LISTING COMPLIANCE
I. Corporate Announcement Filing System ("CAFS")
The Company has been making continual efforts to improve on the turnaround time for disseminating critical information received from listed companies to the shareholders and the public at large, on its website, without compromising on the quality and timely dissemination of the information. CAFS as a system provides for seamless dissemination of filings/ disclosures by listed companies directly on the Exchange website. This is done using security measures such as Two Factor Authentication ("TFA") and has ensured almost instantaneous dissemination of price sensitive information to the investors.
The system makes companies responsible and accountable for their filings, which leads to much faster, efficient, and informed decisions by investors and the public at large. Auto check has been placed to provide notification that all pdf files are in machine readable format.
During the current year, the system has been periodically enhanced to include additional disclosures under the seamless mode as well as enhancing the security features in line with the regulatory requirements. Various webforms for Financial Results, Annual Secretarial Compliance Report, Annual Reports; have been updated to receive periodic compliances. Category of Corporate Action has been enhanced by adding more descriptions.
Filing through CAFS, which was available for Equity listed companies, has now been extended to other segments like, debt, mutual funds, and commercial papers as well. In the FY 2025-26 , the Exchange received 30,21,367 filings by companies using the CAFS system.
II. Update on eXtensible Business Reporting Language ("XBRL")
BSE is the first Exchange in India to introduce the globally accepted reporting format XBRL as it is more popularly known, for certain critical disclosures required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ("Listing Regulations"). The Company had earlier enabled XBRL based filing for Shareholding Pattern, Corporate Governance Report, Voting Results, Financial Results, Share Capital Audit report, Disclosure of Insider Trading under Prohibition of Insider Trading, Unit Holding Pattern for Mutual funds, Annual Secretarial Compliance Report, Related Party Transactions, Record Date for Debt Listed Entities and Centralized Database Statement (Credit Rating, Interest Payment, Redemption Payment and Default History Information), Statement of Investor Complaints, Statement of Deviation/Variation Financial Results for Insurance Companies and NBFCs and filing of companies Annual Reports (based on Ministry of Corporate Affairs Taxonomy).
The Committee on Corporate Governance (Kotak Committee) in its report had recommended filing of disclosures to Exchange in XBRL format. Accordingly, SEBI had directed the Exchanges to implement XBRL based filing for the disclosures. Since BSE had made significant progress on this front, it was recommended by SEBI that the other nation-wide Exchanges also adopt the BSE Taxonomy and the same may be the common taxonomy for these regulations, across India. Other Exchanges had commenced integration of the BSE XBRL taxonomy for these filings and listed companies are now able to use a common file for filing at all Exchanges.
All new XBRL based developments are now being jointly developed by the exchanges with BSE, being largely responsible for the development of Taxonomy and the Excel utility used for filing.
From last year, the Company worked with other MIIs to introduce XBRL single filing system for receiving filing under various regulations of Listing Regulations in XBRL format such as Investor Grievance Report, Corporate Governance Report, Reconciliation of Share Capital Audit Report, Meetings of shareholders and voting._ On direction of SEBI circular dated December 31, 2024, the Company along with other MIIs has implemented Integrated Filing (Integrated Filing (Governance) and Integrated Filing (Financial) for ease of doing business for listed entities wherein_ Integrated Filing (Governance) is under Single filing system.
In the current year, in line with SEBIs guidance, the Company has developed additional XBRL taxonomies in coordination with other exchanges to ensure coverage of all applicable requirements under the SEBI (LODR) Regulations, 2015. These taxonomies have also been brought under the Single Filing platform in collaboration with the participating exchanges.
III. Compulsory Delisting:
Trading in the securities of certain listed companies had been suspended for a long period of time on account of non-compliance with the critical clauses / regulations of the erstwhile Listing Agreement/SEBI(LODR) Regulations. BSE under the guidance of SEBI, had advised companies that had been under suspension for a period of six months or more, to expedite their filings completion of all formalities for revocation or else be compulsorily delisted from the Exchange, as per the provisions of the SEBI (Delisting of Equity Shares) Regulations, 2009 / 2021.
Under SEBI (Delisting of Equity Shares) Regulations, 2009/2021, the Exchange has delisted 1,484 companies from April 1, 2016, till March 31, 2026, which have been suspended for a period of more than 6 months for non-compliance with the erstwhile Listing Agreement/ SEBI (LODR) Regulations, 2015/other reasons and which have not completed formalities for revocation within the stipulated timelines.
SEBI has included this provision in its circular on Standard Operating Procedure (SOP) for suspension and revocation. The Exchange accordingly sends advisory letters to companies suspended pursuant to the provisions of SEBI SOP circular, informing them about the consequences of not initiating formalities for revocation of suspension of trading.
1 Source: Futures Industry Association (FIA)
8. COMPETITIVE STRENGTHS AND OPPORTUNITIES
A. STRENGTHS
I. Strong brand recognition
Established in 1875, BSE is Asias oldest Stock Exchange and one of the most identifiable brand names in India with high levels of recognition among investors, intermediaries, and the public. BSE is the also the worlds fastest growing exchange in terms of derivatives contracts traded1. The BSE building is one of the most recognized symbols of the Indian capital markets . It is one of the few structures in India that has been trademarked. In addition, the benchmark index, the BSE SENSEX, an index based on 30 BSE-listed large, well-established, and financially sound companies across key sectors of the Indian economy, serves as the primary global barometer for Indias financial markets and is comparable in recognition to other global indices such as the BSE 500, the Dow Jones Industrial Average, the FTSE 100, the DAX, and the Hang Seng Index. Since it was first compiled in 1986, the Sensex has come to be known as the market bellwether. BSE brand is further strengthened due to over four thousand seminars/ education sessions conducted every year. These events are investor awareness programmes that are conducted in association with BSE IPF (Investor Protection Fund), or events organized with industry associations like FICCI, CII, Assocham, PHD Chamber of Commerce & Industry, BSE Brokers Forum etc.
II. Sound corporate governance and regulatory framework
As a Stock Exchange, we are subject to a high level of regulatory oversight. We are committed to working with national and international Regulators, Exchanges, Clearing Corporations, Depositories and Market Participants to ensure an orderly, informed and fair market for the benefit of investors. We are also committed to strong and effective internal governance and regulation and believe that regulatory integrity benefits investors, strengthens our brand and attracts companies seeking to list securities on our markets.
In furtherance of these goals, we have a dedicated surveillance department to keep a close watch on the price movement of securities, detect potential market manipulation, monitor prices and volumes which are not consistent with normal trading patterns.
III. Technology Updates:
Technology continues to be a core strategic enabler for the Company, supporting efficient market operations and enhancing competitiveness through improved scalability, resilience, and accessibility. During the year, the Company strengthened its technology infrastructure through targeted modernization initiatives, resulting in higher throughput, optimized latency, and enhanced capacity to handle increasing market volumes.
Significant upgrades were undertaken in trading infrastructure, including expansion of processing capacity, enhancement of order handling capability, and deployment of advanced optimizations, thereby ensuring robust performance and adequate headroom for future growth. The Company also implemented capacity planning tools and adaptive mechanisms to efficiently manage peak load conditions.
The Company maintained a strong focus on risk management and operational resilience, supported by continuous upgrades to automated surveillance systems and achievement of high system uptime. Improvements in IT resiliency indicators reflect strengthened governance, monitoring, and proactive system enhancements.
Business continuity and disaster recovery capabilities were further enhanced through successful live DR operations, improved recovery metrics, and integration of DR readiness into routine operations. Additionally, the Company expanded its data centre and colocation infrastructure to cater to growing demand and improve overall system scalability.
Key platform-level initiatives included modernization of the StAR Mutual Fund platform through microservices architecture and implementation of a high-performance trade dissemination platform with near-zero data loss capability.
The Company also progressed on broader technology initiatives, including enhanced observability, adoption of AI-driven use cases, and implementation of automated performance testing frameworks, leading to improved system stability and operational efficiency.
B. OPPORTUNITIES I. StAR Platforms (NPS)
The National Pension System (NPS) represents one of the most lucrative, under-tapped distribution opportunities in Indias financial landscape today. For years, low margins kept distributors away. However, recent regulatory overhauls by the PFRDA have transformed NPS from a slow government scheme into a high-yield asset for fintechs, wealth managers, and mutual fund distributors. Because retirement funds are structurally locked until age 60, this creates a highly stable, compounding revenue stream spanning decades.
The market potential is massive. While government employees are well-covered, the private sector, corporate workforce, and Indias booming gig economy remain vastly underserved. Micro-pension models targeting platform workers open up a massive "blue ocean" consumer base. Backed by Indias digital public infrastructure-enabling paperless Aadhaar KYC and automated UPI top-ups-the friction of enrollment has vanished. For financial intermediaries, distributing NPS is no longer just a value-add; it is a critical gateway to capturing lifelong customer wallets and building long-term advisory wealth.
The launch of the dedicated StAR NPS platform by BSE Technologies Private Limited establishes a unified digital infrastructure designed to capture Indias expanding retirement ecosystem. By building directly on the foundation of BSE StAR MF, the BSE is uniquely positioned for NPS distribution opportunities.
II. Commodity Derivatives
The commodity derivatives market in India has evolved into an exceptional, high growth engine for financial intermediaries, tech platforms, and institutional players. The structural shift from a localized, purely speculative sandbox to a mainstream, institutionalized asset class makes commodity derivatives a generational business opportunity in India.
In the coming years, BSE plans to systematically develop the commodity market with launch of more futures and options products via innovation, awareness and research to provide a wider product range to the market participants. Each product will be based on detailed market consultations and feedback from all participants in the ecosystem.
III. Index Services
BSE Index Services Private Limited (Formerly Asia Index Private Limited) (BISPL) designs, maintains and disseminates a wide range of indices categorised under broad, sectors, thematic and factor and strategy indices. It provides index and index related services to stock exchanges, asset management companies, insurance companies, and other financial institutions in India and across the globe. It is dedicated to develop and provide innovative, rule-based indices that serve as an important benchmark for financial markets. It also provides custom index solutions and licensing services for index linked products- ETF/Index Funds and subscription services for benchmarking the performance of active fund schemes.
The name change from Asia Index Pvt. Ltd. was undertaken to reflect BISPLs true parentage. During the last financial year, BISPL demonstrated strong innovation and scalability by launching over 30 new indices spanning across broad market, sectoral, factor, and thematic as well as fixed income segments. BISPL has further diversified its client base, servicing over 350 domestic and global clients. In recognition of its leadership and innovation, BISPL was awarded "India – Index Provider of the Year 2026" at the Asia Asset Management Best of the Best Awards 2026.
With the continued growth of the mutual fund industry in India, BISPL remains committed to expanding its product suite and delivering increasingly relevant index solutions for investors and market participants.
IV. Power and Electricity Markets
Indias power demand is expected to grow with the governments focus of providing "24x7" clean and affordable power for all. Today, surging energy demand, acute seasonal volatility, and aggressive green energy integration are driving state utilities (DISCOMs) and heavy industrial units to embrace electronic power exchanges for just-in-time procurement.
The primary catalyst for this expansion is the explosive growth of specialized spot segments, such as the Real-Time Market (RTM) and the Green Day-Ahead Market (G-DAM). These platforms allow renewable energy generators to trade intermittent solar and wind surpluses seamlessly while providing buyers with flexible power within a one-hour notice period. This digital infrastructure is further boosted by the introduction of Electricity Futures, creating an avenue for institutional traders and large corporations to hedge against volatile tariff spikes without physical grid constraints.
Furthermore, upcoming structural reforms like Market Coupling are poised to level the playing field. By centralizing price discovery across competing exchanges, it will unlock massive technology-led growth for all platforms. Combined with Indias expanding role as a cross-border regional energy hub, facilitating seamless electricity trade have become critical to powering Indias industrial future and green transition.
BSE has a stake of 22.62% in the Hindustan Power Exchange through its wholly owned subsidiary, BSE Technologies Private Limited, and is exploring opportunities to expand in this segment.
9. THREATS
A. INDUSTRY ACTIVITY LEVELS DECLINE
The Companys performance is dependent upon the volume and value of trades executed on its trading platform, the number of new/ further listings and the amount of capital raised through such issues, the number of active traders in the market, etc. While the Companys efforts can influence these activity levels, many factors that can have an impact on these factors are beyond the control of the Company. Adverse macro-economic developments and political uncertainty may dampen the sentiments of the capital markets and negatively affect the business.
B. REGULATORY CHANGES IMPACTS OUR ABILITY TO COMPETE
The competitive landscape for the securities transactions business in India continues to be challenging. The Companys ability to compete in this environment and ensure that regulations continue to allow competition on a level playing field, will be a major factor in ensuring sustained growth and profitability. Regulatory decisions relating to the BSE ownership structure, the ownership structure of its subsidiaries and associate companies, compensation policies, associated fees and levies, and restrictions on how Exchanges distribute their profit will continue to impact competitiveness.
C. CYBERSECURITY THREATS
Capital markets, despite enhanced cybersecurity defences, continue to remain prime targets for cybercriminals due to the high financial value involved. Any successful cyber breach can result in significant business losses, impacting brand reputation, customer trust, and investor confidence. To mitigate these risks, the Company continues to invest in advanced cybersecurity technologies and regularly strengthens its cybersecurity policies and procedures through continuous improvement initiatives. The Company may face the following types of cyber security threats:
Distributed Denial-of-Service (DDoS) attacks
Phishing and social engineering attacks
Ransomware, malware and social engineering attacks
AI-Enhanced cyber threats
Cryptojacking
Supplychain attacks
Cloud security misconfigurations
Identity and accessbased attacks
Zeroday exploits
Insider threats
Data privacy and regulatory compliance risks
The Company has made conscious and sustained investments to design and implement appropriate preventive, detective, and corrective security controls for most of the identified cyber threats. These measures, supported by periodic risk assessments, continuous monitoring, and governance oversight, have significantly reduced the overall residual risk to an acceptable level.
10. KEY STRATEGIES
INDIA INTERNATIONAL EXCHANGE (IFSC) LIMITED Strategic Initiatives & Future Outlook
India International Exchange (India INX) remains committed to strengthening its position as a premier international exchange at GIFT IFSC. The Companys longterm strategic vision continues to focus on product innovation, global market integration, sustainable finance, and robust technology infrastructure. These strategic priorities are expected to remain consistent year on year providing stability while supporting scalable growth.
Key Strategic Focus Areas
I. Establish Market Leadership in the Secondary Market through innovation and diversified offerings
India INX aims to reinforce its leadership position in the secondary market through continuous innovation and diversification of its product portfolio.
Key initiatives include:
Expansion of equity, derivatives and debt market offerings to enhance depth and liquidity.
Collaboration with asset management companies (AMCs) for launching ETFs on Indian equities.
Engagement with global AMCs to explore listing and trading of ETFs on foreign equities.
II. Emerge as the Preferred Gateway for Global and Outbound Investments
India INX, through its wholly owned subsidiary India INX Global Access (India INXGA), is focused on enabling seamless global investing opportunities for Indian and IFSC-based investors.
Strategic initiatives include:
Expanding market reach through tieups with leading Indian and international banks.
Partnerships with global brokers, custodians, and international trading platforms to broaden exchange coverage and product offerings.
III. Go Green and Endorse ESG Initiatives
India INX remains committed to promoting sustainable finance and ESGlinked capital formation.
Key initiatives include:
Expansion of ESG offerings through the GSM Green Platform, supporting green, social, sustainability, and sustainabilitylinked instruments.
Strategic collaborations, including with the Luxembourg Stock
Exchange, to enhance global ESG connectivity.
Alignment with evolving ESG regulatory guidelines issued by IFSCA to strengthen transparency and curb greenwashing with significant capital raised in ESGlabelled securities and strong participation in Sovereign Green Bonds, India INX is well positioned to emerge as a leading global destination for green and sustainable finance.
IV. Continued Focus on listing of new products in Primary Markets
India INX is enhancing its primary market capabilities through innovative regulatory frameworks and globally aligned listing processes.
Key focus areas include:
Leveraging regulatory reforms such as the IFSCA Listing Regulations, 2022 and LEAP Rules, 2024, positioning GIFT IFSC as a competitive global Capital-Raising hub.
Enabling listings of equity, debt, ESGlinked securities, and other innovative instruments.
Utilizing the Global Securities Market (GSM) platform to ensure a seamless, efficient, and investorfriendly listing experience for issuers.
V. Enhancing Global Participation
India INX continues to actively engage with international market participants to increase crossborder investments.
This includes:
Strengthening partnerships with international Exchanges, brokers, custodians, clearing members, and market makers.
Expanding institutional participation to deepen liquidity and improve price discovery across products.
VI. Infrastructure, Technology & Cyber Security Upgrades
India INX continues to invest in upgrading its technology and market infrastructure to support scale, resilience, and operational efficiency. During the year India INX launched Mobile application to give easy access of exchange for investors.
"India INX maintains a strong cybersecurity and cyber resilience posture aligned with IFSCA CSCRF, SEBI guidelines, ISO/IEC 27001:2022, and NIST CSF. A comprehensive policy framework, 24x7 SOC monitoring, and formal incident response and DR arrangements are in place. Thirdparty cyber risks are actively managed through structured controls and ongoing remediation. Overall cyber preparedness continues to be strengthened in line with India INXs role as a critical market infrastructure institution."
These initiatives aim to:
Ensure system robustness and high availability in anticipation of growing trading volumes.
Enhance client experience through secure, reliable, and efficient trading, clearing, and settlement systems.
Maintain alignment with global best practices in cybersecurity, risk management, and regulatory compliance.
DIVERSIFY OUR PRODUCT AND SERVICE OFFERINGS AND MAINTAIN NEW PRODUCT INNOVATION AND DEVELOPMENT
BSE currently operates in a wide array of segments and offers a bouquet of products including equity, debt, derivatives in equity, currency, commodity and interest rate, mutual fund, insurance, SME, and start-ups segment. In addition to our ongoing strength in service offering, we intend to target the investors needs for all financial products through innovative product and service offerings.
FOCUS ON INCREASING OUR MARKET SHARE OF DERIVATIVE PRODUCTS
We actively evaluate products and asset classes outside our traditional focus areas to diversify our revenue sources. By doing so, we seek to continually attract market participants and issuers and capture the significant revenue potential that comes with a broader product line. These initiatives have yielded us positive results, evident in our increasing market share in the equity futures and options, with Sensex and Bankex contracts. With the introduction of Single stock derivatives from July 1, 2024, and other unique products in Index derivatives, BSE has become the worlds second largest exchange in a short span.
CYBER SECURITY
Cyber security strategy is closely aligned with the Companys broader business and IT strategy to ensure uninterrupted operations. Appropriate controls and solutions have been implemented to enable users to operate securely within a Zero Trust framework, with robust data protection and cyber security controls embedded across systems and processes. As a result, cyber security has emerged as a key strategic pillar contributing to overall operational resilience and business continuity.
The Companys operations are highly dependent on internet connected technology systems that are continuously accessible to market participants, making robust cyber security critical. To address evolving cyber threats, the Company has implemented a 365 days 24x7 Next Generation Cyber Security Operations Centre (SOC) with advanced analytics and machine learning based threat detection, enabling proactive monitoring and rapid incident response. In addition, a Market Security Operations Centre (MSOC) has been established for applicable Members and Brokers in line with SEBI requirements.
People, Process, and Technology initiatives form the foundation of the Companys cyber security posture: People:
Regular information security awareness initiatives have significantly reduced human related risks, one of the leading causes of cyber breaches.
Periodic social engineering simulations, including phishing, smishing and vishing exercises, have enhanced employee vigilance in identifying and reporting suspicious activities, thereby fostering a strong security conscious culture.
Process:
Organisation maintains and continuously enhances its policies to align with evolving cyber security best practises and threat landscape.
Secure by design practices has enhance security controls in protecting critical assets.
Periodic disaster recovery readiness and security resilience exercises have strengthened the Companys preparedness, transitioning the security posture from reactive to proactive.
Cyber Capability Index (CCI): Organisation leveraging the CCI platform as per SEBI guidelines to evaluate cyber risk maturity, monitors continuous security improvements and have achieved optimal cybersecurity maturity score.
Technology:
Cyber Security function adopts a proactive, layered approach leveraging advance technologies with defence in depth methodology with technology controls implemented at network/perimeter, endpoint, application, data and user level. All tools and technologies integrated, orchestrated and automated from SOC for effective response and cyber resilience. Overall, cyber security remains a strategic enabler for the Company, supporting regulatory compliance, protecting critical systems and data, value delivery through stakeholder trust, and strengthening the resilience of business operations in an increasingly complex and evolving threat environment.
11. RISKS AND CONCERNS A. BUSINESS RISKS
Our performance relies upon the volume and value of trades executed on the trading platform, number of orders processed on the Mutual Fund Distribution platform, the number of active investors in the market, the number of new/further listings and the amount of capital raised through such listings.
Adverse economic conditions could negatively affect our business, financial condition and result of operations.
Our industry is highly competitive, and we compete globally with a broad range of market participants for listings, clearing, trading and settlement volumes, and distribution of financial products.
We operate in a business environment that continues to experience significant and rapid technological change.
We operate in a highly regulated industry and may be subject to censures, fines, and other legal proceedings if we fail to comply with our legal and regulatory obligations. Changes in government policies could adversely affect trading volumes of instruments traded on BSE.
The continuation or recurrence of systemic events such as the global economic crisis, changes in economic policies and the political situation in India or globally may adversely affect our performance.
Our business, financial condition and result of operations are highly dependent upon the levels of activity on the exchange; and in particular upon the volume of financial assets traded, the number of listed securities, the number of new listings and subsequent issuances, and volume of financial products distributed. Moreover, they are dependent on, liquidity and similar factors that affect, either directly or indirectly, the trading, listing, clearing and settlement transaction-based fees.
Integral to our growth is the relative attractiveness of the financial assets traded on the exchange; and the relative attractiveness of the exchange as a market on which to trade these financial assets. All of these variables are primarily influenced by economic, political and market conditions in India as well as, to a lesser degree, the rest of Asia, the United States, Europe and elsewhere in the world.
Weak economic conditions of the country may adversely affect listing, trading, clearing and settlement volumes as well as the demand for market data. If the return on investments in Indian companies are generally lower than the return on investments in companies based in other countries, we may be unsuccessful in attracting foreign and local investors to our markets.
Bullion, Base metals and Energy products are linked to international market, currency and government duties etc.
Agri commodities are linked to crop production, monsoon, demand, and Government policies.
Other factors beyond our control, that may materially adversely affect our business, financial condition and result of operations include:
- Broad trends in business and finance, including industry-specific circumstances, capital market trends and the mergers and acquisitions environment.
- Social and civil unrest, terrorism and war.
- Concerns over inflation and the level of institutional or retail confidence.
- Changes in government monetary policy and foreign currency exchange rates.
- The availability of short-term and long-term funding and capital.
- The availability of alternative investment opportunities.
- Changes and volatility in the prices of securities.
- Changes in tax policy (including transaction tax) and tax treaties between India and other countries.
- The level and volatility of interest rates.
- Legislative and regulatory changes, including the potential for regulatory arbitrage among regulated and unregulated markets, if significant policy differences emerge among markets.
- The perceived attractiveness, or lack of attractiveness, of Indian capital markets; and
- Unforeseen market closures or other disruptions in trading.
We operate in a business environment that has undergone, and continues to experience, significant and rapid technological change. To remain competitive, we must continue to enhance and improve the responsiveness, functionality, capacity, accessibility, and features of our trading and clearing platforms, software, systems and technologies. Our success will depend, in part, on our ability to:
- Develop and license leading technologies.
- Enhance existing trading and clearing platforms and services.
- Anticipate the demand for new services and respond to customer demands, technological advances and emerging industry standards and practices on a cost-effective and timely basis.
- Continue to attract and retain a workforce highly skilled in technology and to develop and maintain existing technology; and
- Respond and adapt to competition from and opportunities of emerging technologies such as Fintech innovation.
B. REGULATORY & COMPLIANCE
BSE continues to play a significant role in the securities market of India and as a first line regulator, is responsible for ensuring orderly functioning of the securities market. BSE has always strived for the safety and vibrancy of the securities markets and continues to work toward further enhancing the same.
BSE has been collaboratively working with other MIIs under the guidance of SEBI in various initiatives aimed at making our marketplaces safer and also in building of efficient market eco system. Besides this, BSE strives to ensure compliance with the regulatory obligations prescribed by SEBI and other regulators through implementation of regulatory measures, technology initiatives and strengthening the resources.
BSE is also focused on simplifying the compliance burden on various stakeholders without compromising on essence or principles of compliance. BSE is a member of various Industry Standards Forums established by SEBI, which is a joint forum of representatives from the Market Infrastructure Institutions and Industry bodies, for effective implementation of regulatory frameworks. BSE actively contributes to these forums for enhancing Ease of Doing Business without compromising on the regulatory intent.
BSE continues to put in place various automation initiatives to simplify compliance as well as effectively monitor and enforce the regulatory framework.
BSE continued its investor awareness drive in FY 2025-26 through its Investor Protection Fund (IPF) by organising free webinars, seminars, and training programmes for investors.
The Exchange also leveraged its strong digital presence, with a combined social media following of approximately 44 Lakh across YouTube, LinkedIn, Facebook, Instagram, and X, to enhance investor awareness. BSE actively collaborated with SEBI on several integrated campaigns, including SEBIvsSCAM, World Investor Week, and SEBI UPI Check. To broaden its reach and impact, it introduced innovative and gamified content, utilising newer mediums such as radio, OTT platforms, and Out-of-Home (OOH) advertising.
Notably, the SEBIvsSCAM campaign successfully reached over 50 crore people across digital and offline channels." BSE understands its role as "First Level Regulator" and has published Notices, Circulars and Guidelines for regulated entities under its purview.
C. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company identifies risk based internal audit scope and assesses the inherent risk in the processes and activities of all departments to ensure that appropriate risk management limits, control mechanisms and mitigation strategies are in place. The Internal Auditors report observations relating to the deficiencies / non-compliance of various audit areas and give suggestions / recommendations and control directives to mitigate the shortcomings and make the process, procedure, systems, and functions more robust, accountable, reliable, and compliant. The observations made by the Internal Auditors and the compliances thereof are placed before the Audit Committee and also shared with the Statutory Auditors for their information.
The internal audit scope is prepared after considering all interdepartmental policies and procedures, any regulatory or statutory changes and critical functions of the organization and then placed before the Audit Committee for their approval.
The Company has implemented the Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Accordingly, the COSO based procedures and process manuals for major functions have been prepared to establish interlinkages between departments, to define responsibility, accountability, and reporting matrix, to define control framework of each process and activity and to identify the risks. Internal Auditors refer to COSO based process and procedures while performing the internal audit functions.
The Company conducts in-house monitoring of the important applicable statutory and regulatory compliances. The status of compliances and the monitoring thereof are regularly placed before the Audit Committee and the Board.
The processes and quality management systems of the Company are ISO 9001:2015 certified by S & A Certifications having European accreditation of Euro Cert. The Company conducts the audits of the processes as required under ISO 9001:2015 and has successfully obtained certification valid upto July 28, 2028.
The Company has an Audit Committee, the details of which have been provided in the Corporate Governance Report. The Committee reviews audit reports submitted by the Internal Auditors. Suggestions for improvement are considered and the Committee follows up on the implementation of corrective actions. The Committee also meets the Statutory Auditors to ascertain, inter alia, their views on the adequacy of internal control systems.
12. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED
A. HUMAN CAPITAL
BSEs continued progress is anchored in its strong belief that people are the key drivers of sustainable performance, innovation, and longterm value creation. During the year, the organisation deepened its focus on strengthening human capital by investing in capability building, leadership effectiveness, and organisationwide people practices that enable growth, accountability, and high performance.
To support this agenda, BSE continued to review and enhance its HR systems, policies, and processes, ensuring alignment with evolving business priorities and regulatory expectations. Emphasis was placed on building robust organisational structures that promote transparency, inclusiveness, and a culture of ownership across all levels.
Diversity and Inclusion remain integral to BSEs people strategy. The organisation continues to foster an equitable work environment that values diverse perspectives and ensures equal opportunities for growth and development.
Against this backdrop, the following sections outline the Companys human capital initiatives covering workforce composition, adequacy, organisational effectiveness, capability development, and employee experience.
I. Workforce Composition
As on 31 March 2026, the Company had a total workforce of 850 employees, comprising:
769 employees in management cadres
81 employees in staff roles
The workforce remains largely deployed across critical operations, regulatory and risk functions, technology, market operations, and support services, enabling operational continuity and regulatory compliance. Women representation stands at ~30% of the total workforce, reflecting sustained progress on gender diversity and inclusive growth.
II. AON Manpower Adequacy Framework
During FY 2025–26, BSE partnered with AON to implement a structured, datadriven Manpower Adequacy and Workforce Optimisation Framework. This initiative represents a significant step in strengthening workforce governance and productivity measurement.
Key aspects of the framework:
Coverage of all critical operations and regulatory functions
Assessment of activity volumes, role complexity, delegation, and span of control
Benchmarking against external productivity standards
Key outcomes:
Overall workforce assessed as adequate.
Revenue per employee and cost per employee are optimally positioned vis?vis MII benchmarks.
The AON framework now serves as a foundational input for future hiring decisions, organisational design, and productivity planning.
III. Organisation Structure Optimisation
As part of improving execution effectiveness and career progression, BSE undertook a significant organisation structure rationalisation during the year.
Structural transformation highlights:
Reduction of hierarchical grades from 19 levels to 9 levels
Enhanced career visibility for employees
This flattening of the structure supports faster execution, stronger leadership ownership, and improved employee engagement.
IV. Internal Mobility & Career Development
The organisation strengthened internal career mobility through the Job Rotation Policy, aimed at providing crossfunctional exposure, leadership readiness, and skill diversification. Eligible employees were identified and systematically rotated based on tenure, performance, and organisational requirements.
Additionally, the Internal Job Posting (IJP) framework was rolled out to provide transparent access to internal opportunities, reinforcing the principle of "growth from within" and supporting longterm retention of highpotential talent. All roles are first opened internally prior to external hiring.
To further enhance futureready talent planning, an Expression of Interest (EOI) mechanism was also introduced, enabling employees to proactively articulate career aspirations beyond formal IJPs.
B. Learning and Development:
BSE continued to strengthen organisational capability through focused Learning and Development interventions aligned to identified competency requirements and business priorities. The learning agenda covered both behavioural and technical competencies. Behavioural programs focused on enhancing personal and managerial effectiveness through interventions such as Personal Effectiveness, and Email Writing, while technical capability building included programs on AI & ML and Advanced Excel.
These interventions were anchored around focus areas outlined below. Key Metrics:
7 structured learning programs covering 550+ participants
130 people managers trained under the flagship Managerial
Effectiveness Program
30 employees trained inhouse for 6 months on AI/ML. 20-seater AI
Lab was launched in March 2026
Design Thinking covered 340+ employees
Leadership Development:
12 Senior leaders attended advanced programs at IIM Ahmedabad,
IIM Bangalore, ISB and IIM Calcutta.
Coaching Sessions for 7 Key Managerial Personnel (KMPs), aimed at deepening selfawareness, identifying development areas, enabling sustained performance and leadership growth.
Crucial Conversations program was rolled out for all senior leaders.
Digital Learning:
Digital Learning initiative supports selfdriven learning, rolebased skill development, and readiness for evolving business and technology requirements.
To embed continuous learning, e-learning portal was introduced, providing selfpaced learning access across emerging skills.
The organisation also continued to support functional capability strengthening through externally sponsored NISM certifications, enabling employees to build domain expertise and regulatory proficiency.
Collectively, these initiatives reinforce BSEs commitment to building a futureready workforce through structured, scalable, and impactoriented learning interventions.
C. Employee Engagement, Cultural and Wellness Initiatives:
Employee engagement initiatives during the year focused on fostering connect, care, and inclusion, while reinforcing the Companys performanceoriented culture.
Key Highlights:
30+ engagement initiatives conducted across wellness, culture, sports, and learning.
Preventive health checkup covering 500+ employees.
Wellness initiatives such as Art of Living sessions, fitness challenges, and focused programs on PCOS and PCOD contributed to improved awareness, participation, and employee wellbeing.
Sports and cultural events fostering collaboration and inclusion.
Career Mentoring Session 200+ employees participated.
Key inclusion initiatives included a Fireside Chat on "From Burnout to Balance: Womens Wellness in a Digital Age" and the Top Powerful Women Series, recognising women employees through personalised appreciation. CSR Engagement: As part of employeeled CSR initiatives, children from CRY (Child Rights and You) engaged in a guided visit to BSE, supported by focused sessions on internet safety and financial literacy, along with interactive learning activities. These initiatives contributed to a positive work environment characterised by trust, openness, and collaboration.
D. Communication, Conduct & Ethical Standards
Open communication and leadership accessibility continued through regular town halls, skiplevel meetings, dedicated induction interaction with the Managing Director for DVP and above, reinforcing transparency and alignment with organisational priorities.
The Company maintained a strong emphasis on ethical conduct, data confidentiality, and regulatory compliance, including strict adherence to the Code of Conduct and Prevention of Insider Trading standards.
E. Workplace Enhancements:
During the year, several workplace enhancements were implemented to improve employee experience and operational efficiency.
New attendance system implemented using IDcard swipe access, replacing biometric systems.
Upgradation of canteen facilities, with improved seating layout, enhanced hygiene standards, and better food quality. Fortnightly Clean Desk Drive institutionalised across operational floors.
These initiatives contributed to improved accessibility, workplace efficiency, and overall employee experience.
13. BSES CONTRIBUTION IN THE ESG AND SUSTAINABILITY SPACE i. Scope 2 Emissions Reduction:
Intelligent AC optimizing refrigerant flow; installed on 4 renovated floors supplementing 14 % of our energy need through green sources.
Through this initiative, we successfully met and exceeded our FY26 target emissions reduction, achieving 20.28%_while enhancing BSEs of 20% CO2 sustainability credentials. ii. Rainwater Harvesting:
A rainwater harvesting system has been implemented at BSEs buildings in Mumbai. The harvested rainwater is treated and utilized for the chiller plant operations, while the surplus water is directed towards recharging the existing ring wells within the premises, supporting water conservation efforts.
This initiative promotes optimal utilization of rainwater and helps reduce reliance on municipal water supply. iii. Installation of Motion Sensors:
As part of its commitment to improving energy efficiency, BSE has installed motion sensors across its premises. These sensors automatically activate lighting upon detecting movement and switch off when areas are unoccupied, thereby minimizing unnecessary electricity consumption. By integrating energy-efficient LED lighting with motion sensor technology, BSE optimizes illumination levels while minimizing energy wastage. This combined approach enhances overall electricity efficiency, supports sustainability objectives, and contributes to reduced operational costs. iv. Reduction in Plastic Waste :
To minimize single-use plastic waste and encourage sustainable practices, BSE has replaced plastic water bottles with reusable glass jars across its premises. These jars are regularly refilled, offering a hygienic and environmentally responsible alternative to disposable plastic bottles. This initiative substantially reduces plastic usage, decreases environmental impact, and reinforces our commitment to sustainable resource management and responsible waste reduction. v. Reduction of Paper Waste :
As part of its sustainability initiatives, BSE has substantially discontinued the use of tissue paper in washrooms across the building. Energy-efficient electronic hand dryers have been installed on every floor, providing a hygienic and environmentally responsible alternative. This initiative helps reduce paper waste, lower procurement and disposal costs, and minimize the organizations overall environmental footprint.
This initiative eliminates avoidable paper waste in washrooms, encourages sustainable resource utilization, and reduces dependence on disposable paper products. It also results in cost efficiencies while promoting a cleaner and more hygienic environment. vi. Reuse of Office Furniture:
To encourage reuse and minimize waste generation, used office furniture is offered to employees at a nominal price.
This initiative extends the useful life of the furniture while offering employees a cost-effective option.
vii. Energy Efficient Data Centres:
The Company is committed to progressing toward carbon neutrality and reducing the environmental impact of its large data centres. To support this objective, it adopts a comprehensive approach that focuses on enhancing energy efficiency, conserving water resources, assessing climate-related risks, optimizing infrastructure, and strengthening operational practices.
Through its DC Sustainability Tool and NetZero Simulators, BSE continuously monitors key performance metrics, identifies energy-efficiency opportunities, and evaluates carbon reduction strategies. IoT-enabled inlet air temperature controls further enhance cooling efficiency, reduce energy consumption, and integrate with water recycling systems to minimize resource wastage advancing BSEs data centres toward carbon neutrality. By leveraging advanced optimization technologies and sustainable operational practices, BSE seeks to lower its carbon footprint while strengthening overall efficiency and environmental performance. Detailed ESG disclosures are provided in the Business Responsibility & Sustainability Report (BRSR).
V. FINANCIAL PERFORMANCE
1. Overview of Financial Performance
FY2025-26 was a landmark year for BSE Limited, defined not merely by record revenues and profits, but by a structural step-up in the organisations earnings power. The Company recorded its highest-ever standalone revenue from operations of Rs 4,46,951 Lakh - a 71% year-on-year increase - driven by an acceleration in derivatives trading volumes, sustained momentum in the StAR MF mutual fund platform, and a significantly expanded colocation and connectivity infrastructure. Revenue growth continued to materially outpace cost growth, yielding an improvement in operating margins and delivering a Profit Before Tax of Rs 3,08,721 Lakh, more than doubling the Rs 1,47,516 Lakh reported in FY2024-25. Profit After Tax grew 110% to Rs 2,33,416 Lakh from
Rs 1,11,245 Lakh reported in FY2024-25.
Three structural dynamics underpin this performance. First, the equity derivatives product crossed an inflection point, with BSE emerging as a formidable alternative execution venue for index derivatives - delivering growth of 121% in derivatives transaction charges to Rs 3,13,437 Lakh. Second, the inherent operating leverage of BSEs exchange model manifested sharply: while revenue grew 71%, total operating expenses (including SGF contribution) grew only ~23%, translating into approximately 1,300 basis points of PBT margin expansion. Third, targeted management of variable costs - a 5% reduction in clearing and settlement expenses despite higher volume - reinforced the quality of earnings.
The result is a business that has demonstrably re-rated its earnings profile: Return on Net Worth expanded to approximately 49% in FY26 from 34% in FY25, and Earnings Per Share (adjusted for the 2:1 bonus issue) grew 108% to Rs 56.27.
2. Financial Highlights at a Glance (Standalone)
| Key Performance Indicator | FY | FY | Change |
| 2025-26 | 2024-25 | ||
| Revenue from Operations | 4,46,951 | 2,60,643 | 71% |
| Total Income | 4,83,634 | 2,91,275 | 66% |
| Total Operating Expenses (incl. SGF) | 1,76,503 | 1,43,759 | 23% |
| Profit Before Tax | 3,08,721 | 1,47,516 | 109% |
| Profit After Tax | 2,33,416 | 1,11,245 | 110% |
| PBT Margin (on Total Income) | 63.8% | 50.7% | 1,310 bps |
| PAT Margin (on Total Income) | 48.3% | 38.2% | 1,010 bps |
| EPS - Basic & Diluted (Rs) [Bonus-adjusted] | 56.27 | 27.00 | 108% |
| Return on Net Worth (ROE) | 49% | 34% | 1,500 bps |
3. Revenue from Operations
| Revenue from Operations | FY | FY | % |
| 2025-26 | 2024-25 | Change | |
| Transaction Charges | 3,66,948 | 1,94,987 | +88% |
| - Equity Derivatives | 3,13,437 | 1,41,554 | +121% |
| - StAR MF (Mutual Fund Platform) | 28,490 | 23,077 | +23% |
| - Equity Cash | 25,021 | 30,356 | -18% |
| Listing Fees | 38,861 | 35,328 | +10% |
| Book Building Fees | 10,412 | 9,536 | +9% |
| Other Operating Income | 28,110 | 16,806 | +67% |
| - Colocation Income | 16,899 | 7,262 | +133% |
| Total Revenue from Operations | 4,46,951 | 2,60,643 | +71% |
Transaction Charges
Transaction charges, constituting 82% of total revenue from operations, grew 88% to Rs 3,66,948 Lakh, powered by a transformational increase in equity derivatives activity. BSEs index derivatives contracts particularly Sensex Contract attracted significant participation from all segments of market participants. Derivatives transaction charges grew 121% to Rs 3,13,437 Lakh, reflecting both volume growth and the sustained structural shift in market-wide activity toward BSEs platforms.
The StAR MF platform continued its leadership as Indias largest mutual fund distribution infrastructure, with transaction charges growing 23% to
Rs 28,490 Lakh, driven by a broader universe of active distributors and increasing SIP registrations. Equity cash transaction charges moderated by 18% to Rs 25,021 Lakh, consistent with industry-wide reduction in average daily turnover value.
Listing Fees & Book Building
Listing fee income grew 10% to Rs 38,861 Lakh, supported by a healthy IPO pipeline and increased companies opting for SME-platform listings. Book building fees rose 9% to Rs 10,412 Lakh, reflecting a higher number of large issuers utilising BSEs book building infrastructure, consistent with the robustness of primary market activity in FY26.
Other Operating Income - Colocation Income
Other operating income grew 67% to Rs 28,110 Lakh, primarily driven by colocation, connectivity charges and throttle income, which more than doubled to Rs 16,899 Lakh from Rs7,262 Lakh in the prior year.
4. Investment Income
Total investment income grew 20% to Rs 33,114 Lakh, reflecting a combination of a larger investable corpus (driven by higher operating cash generation). All investments continue to be made strictly in accordance with the Board-approved investment policy, which mandates diversification across high rated instruments reflecting a conservative, capital-preservation orientation commensurate with BSEs status as a Market Infrastructure Institution.
5. Operating Expenses
BSEs financial model is characterised by significant operating leverage: a large proportion of the incremental revenue drops through to the bottom line because fixed and quasi-fixed costs do not scale proportionately with volumes. This leverage was sharply evident in FY26.
Rs in Lakhs
| Operating Expense | FY | FY | % |
| 2025-26 | 2024-25 | Change | |
| Employee Benefits Expense | 19,186 | 15,641 | +23% |
| Depreciation & Amortisation | 13,533 | 9,049 | +50% |
| Technology Expense | 20,163 | 16,651 | +21% |
| Clearing & Settlement Expense | 37,191 | 38,967 | -5% |
| Regulatory Contribution (SEBI & Funds) | 63,978 | 41,027 | +56% |
| Admin & Other Expenses | 14,756 | 13,424 | +10% |
| Sub-Total (Excl. SGF Contribution) | 1,68,807 | 1,34,759 | +25% |
| Contribution to Core Settlement Guarantee Fund | 7,696 | 9,000 | -14% |
| Total Operating Expenses | 1,76,503 | 1,43,759 | +23% |
Rs in Lakhs
| Operating Expense | %age of Operating Revenue | %age of Operating Revenue | % Change |
| 2025-26 | 2024-25 | ||
| Employee Benefits Expense | 4.3% | 6.0% | (170) bps |
| Depreciation & Amortisation | 3.0% | 3.5% | (50) bps |
| Technology Expense | 4.5% | 6.4% | (190) bps |
| Clearing & Settlement Expense | 8.3% | 15.0% | (670) bps |
| Regulatory Contribution (SEBI & Funds) | 14.3% | 15.7% | (140) bps |
| Admin & Other Expenses | 3.3% | 5.2% | (190) bps |
| Sub-Total (Excl. SGF Contribution) | 37.8% | 51.7% | (1390) bps |
| Contribution to Core Settlement Guarantee Fund | 1.7% | 3.5% | (180) bps |
| Total Operating Expenses | 39.5% | 55.2% | (1570) bps |
Operating Leverage: Revenue +71% vs Expenses +23%
The hallmark of FY26 was the power of BSEs operating leverage. Revenue from operations grew 71% while total operating expenses (including SGF contribution) grew only 23%, compressing the cost-to-income ratio from approximately 55% in FY25 to approximately 40% in FY26 - a structural improvement of ~1,500 basis points.
Clearing & Settlement Expenses: Structural Efficiency
Clearing and settlement expenses - paid to clearing corporations - declined 5% to Rs 37,191 Lakh despite significantly higher transaction turnover reflecting increasing depth Index derivative contract is gaining, this represents a sustainable structural efficiency gain for the Company.
Regulatory Contribution
Regulatory contribution - comprising SEBI fees, the Investor Protection Fund (IPF) contribution, and related statutory levies - increased 56% to Rs 63,978 Lakh, broadly tracking the increase in derivatives transaction volumes on which these levies are assessed. As a volume-correlated cost, regulatory contribution does not impact the operating efficiency of the business; the Companys margin profile is unaffected by this scaling.
Employee and Technology Investments
Employee costs grew 23% to Rs 19,186 Lakh, reflecting targeted talent additions in regulatory, technology, risk management, and market development functions. Despite this growth, employee costs as a percentage of revenue from operations contracted sharply from 6.0% in FY25 to 4.3% in FY26, underscoring the scalability of BSEs staffing model. Technology expenses grew 21% to Rs 20,163 Lakh, as the Exchange continued to invest in building capacity, cybersecurity infrastructure, surveillance systems, and the digital modernisation of member-facing platforms. The sustained pace of technology investment is a deliberate strategic priority - technology is the primary moat of an exchange business, and BSEs expenditure in this area has directly contributed to higher volume and higher participant confidence in the platform.
Depreciation
Depreciation increased 50% to Rs 13,533 Lakh, attributable to the significant capital additions of Rs 45,753 Lakh during the year, primarily in technology assets and workplace infrastructure improvements. As these assets are fully commissioned and contribute to revenue generation - particularly through the colocation and higher transaction volume - the incremental depreciation charge is offset by corresponding incremental revenue from these assets.
Core SGF Contribution
Contribution to the Core Settlement Guarantee Fund declined 14% to Rs 7,696 Lakh from Rs 9,000 Lakh. This amount represents a regulatory appropriation and provide for risk buffer for the settlement ecosystem.
6. Balance Sheet Analysis (Standalone, as at March 31, 2026) Equity and Capital Structure
Equity Share Capital stood at Rs 8,158 Lakh as at March 31, 2026, comprising 40,78,84,077 equity shares of Rs 2 each. During the year, the Company allotted 27,46,52,718 bonus equity shares in the ratio of 2:1 (i.e., two new shares for every one existing share held), funded from retained earnings. The bonus issue does not alter the Companys net worth; it capitalises accumulated reserves and broadens the equity base, improving liquidity in the scrip.
As at March 31, 2026, Reserves and Surplus stood at Rs 5,68,495 Lakh, comprising General Reserve of Rs 35,958 Lakh, Capital Reserve of Rs 66,179 Lakh, Capital Reserve on Business Combination of
Rs 10,530 Lakh, and Retained Earnings of Rs 4,55,828 Lakh. Total standalone equity was Rs 5,76,653 Lakh - equivalent to a book value of Rs 141 per share - reflecting strong retained profit accretion during the year.
Fixed Assets and Capital Expenditure
Total net block of property, plant, equipment and intangible assets stood at Rs 52,747 Lakh as at March 31, 2026, compared to Rs 20,631 Lakh in the prior year. The increase of Rs 32,116 Lakh reflects capital additions of
Rs 45,753 Lakh during the year - primarily in enhancement of technology infrastructure and workplace improvement. Capital Work in Progress (including intangible assets under development) stood at Rs 7,157 Lakh, representing projects in execution that will enter the productive asset base in FY27.
The capex intensity of FY26 is a conscious investment in the foundational infrastructure that underpins BSEs competitive positioning - particularly in colocation, matching engine capacity, cyber security infrastructure and surveillance technology. The returns from this capex cycle are already visible in the 133% growth in colocation revenues.
Investments and Liquid Assets
The Companys investment portfolio (comprising equity, fixed income, and debt mutual funds in current and non-current categories, exclusive of investments in subsidiaries and associates) stood at approximately
Rs 2,91,748 Lakh.
Other Financial Assets (current and non-current) of Rs 1,23,539 Lakh represent primarily bank fixed deposits with maturity exceeding twelve months.
Liabilities
The Company remains a zero-debt business; all financial liabilities are operational in nature. Trade Payables stood at Rs 9,638 Lakh as at March 31, 2026 (Rs 7,452 Lakh in prior year), reflecting the higher clearing-related payables consistent with elevated transaction volumes. Other Current Liabilities of Rs 88,216 Lakh include Rs 51,478 Lakh of Securities Transaction Tax (STT) collected and payable to tax authorities - this amount has been remitted before due dates. Other Financial Liabilities include member deposits of Rs 14,401 Lakh, which are operational in nature and have remained relatively stable.
7. Key financial ratios
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.
| Particulars | FY | FY | Variation | % |
| 2025-26 | 2024-25 | (bps) | Change | |
| Return on Equity Ratio (in %) | 49.07 | 33.77 | 1530 | - |
| Net capital turnover Ratio (in times) | 1.84 | 1.38 | - | 33.33% |
| Trade payable Turnover Ratio (in times) | 8.48 | 5.77 | - | 46.97% |
| Return on Capital Employed (in %) | 53.55 | 39.37 | 1418 | - |
Return on Net Worth(ROE):
Return on equity has increased by 1530 bps, to 49.07% in FY2025-26 from 33.77% in FY2024-25. Net Profit for the year has increased by 110% (from Net Profit of Rs 1,11,245 Lakh in FY2024-25 to Net Profit of Rs 2,33,416 Lakh in FY2025-26) as against YoY growth of 44.34% in average Net Worth (from Rs 3,29,580 Lakh in FY2024-25 to Rs 4,75,709 Lakh in FY2025-26).
FORWARD-LOOKING STATEMENTS
This Report consists of forward-looking statements which represent our envisioned future business. These statements are based on certain assumptions and can be identified using words such as ‘believe, ‘estimate, ‘anticipate, ‘may, ‘plan and other words with similar connotations. These statements are solely representative of our expectations based on our experience, sector insight and assumptions, which may be incorrect in the future. Hence, these statements must not be used as a guarantee of future performance.
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