BSE & NSE Go Dark for Foreign Eyes-What’s Really Happening Behind the Scenes?

Updated: May 07, 2025 11:37

Image Source: CNBC TV18

India's premier stock exchanges, BSE and NSE, have cut off access to their sites for foreign users, raising interest among overseas investors but having no bearing on actual activity.

Important Points:

Website Access Blocked for Overseas Users: Both BSE and NSE have geo-restricted their websites, blocking access by users outside India, as of early May 2025. This is in line with a larger trend of making data sharing and usage policies stricter, ensuring that market data is processed and distributed under tight regulatory control and only through sanctioned channels.
Trading Operations Not Affected: In spite of the website limitations, no disruption has occurred to trading operations among foreign investors. Foreign portfolio investors (FPIs) and non-resident Indians (NRIs) are still able to place trades with authorized brokers, custodians, and the NSE's International Financial Services Centre (IFSC) platform at GIFT City, specially created to allow easy overseas access to Indian markets.
Regulatory and Security Drivers: The decision by the exchanges is consistent with increased cybersecurity measures, network segmentation, and access controls to safeguard sensitive financial information and adhere to changing regulatory requirements. These include more stringent firewall settings, authentication processes, and regular security audits to guard against unauthorized access and data leakage.
Alternative Data Access: Global users and institutional investors continue to access market data and trading facilities through approved data vendors, brokerage websites, and IFSC avenues, maintaining business continuity and market transparency.
Market Integrity Preserved: By limiting direct website access but maintaining open trading channels, Indian exchanges are striking a balance between security, regulatory requirements, and seamless global investor participation.