(o) Employee benefits

(i) Short-term obligations

Liabilities for salaries, including non-monetary
benefits that are expected to be settled wholly
within 12 months after the end of the period in
which the employees render the related service are
recognised in respect of employees' services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. Short-term employee benefits are
recognised in the statement of profit and loss in the
period in which the related service is rendered. The
liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Compensated absences

The liabilities for compensated absences are not
expected to be settled wholly within 12 months after
the end of the period in which the employees render
the related service. They are therefore measured as
the present value of expected future payments to be
made in respect of services provided by employees
up to the end of the reporting period using the
projected unit credit method. The benefits are
discounted using the market yields at the end of the
reporting period that have terms approximating to
the terms of the related obligation. Remeasurements
as a result of experience adjustments and changes
in actuarial assumptions are recognised in profit
or loss.

The obligations are presented as current liabilities in
the balance sheet since the Company does not have
an unconditional right to defer settlement for at least
twelve months after the reporting period, regardless
of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post¬
employment schemes:

(a) Defined benefit plans such as gratuity;

(b) Defined contribution plans such as
superannuation and provident fund.

Defined benefit plans:

The Company has maintained a Group Gratuity Cum
Life Assurance Scheme with the Life Insurance
Corporation of India (LIC) towards which it annually
contributes a sum determined by LIC. The liability
or asset recognised in the balance sheet in respect
of defined benefit gratuity plans is the present value
of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets.

The defined benefit obligation is calculated annually
by actuaries using the projected unit credit method.
The present value of the defined benefit obligation
is determined by discounting the estimated future
cash outflows by reference to yields on government
securities at the end of the reporting period that
have terms approximating to the terms of the
related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the statement of profit and loss.

Remeasurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in retained earnings
in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit
or loss as past service cost.

Defined contribution plans:

The Company pays provident fund contributions
to publicly administered Provident Funds as per
local regulations. The Company has no further
payment obligations once the contributions have
been paid. The contributions are accounted for as
defined contribution plans and the contributions are
recognised as employee benefit expense when they
are due.

Superannuation

Superannuation benefits for certain employees are
covered by Company policies with the Life Insurance
Corporation of India. Company's contribution
payable for the period is charged to profit and loss.
There are no other obligations other than the annual
contribution payable.

National Pension Scheme (‘NPS’)

In respect of employees who opt for contribution
to the NPS, the Company contributes a certain
percentage of the total basic salary of such
employees to the aforesaid scheme, a defined
contribution plan, which is managed and
administered by pension fund management
companies. Such contributions are recognised in
the Profit and Loss Account in the period in which
they accrue.

(iv) Bonus plans

The Company recognises a liability and an expense
for bonuses. The Company recognises a provision
where contractually obliged or where there is a past
practice that has created a constructive obligation.

SEBI has laid down certain norms in terms of the
compensation policy for the key management
personnel which are as under:

A. The variable pay component will not exceed
one third of the total pay.

B. 50% of the variable pay will be paid on a
deferred basis after three years.

(p) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of
new shares are shown in equity as a deduction, net of
tax, from the proceeds.

(q) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the
reporting period but not distributed at the end of the
reporting period.

(r) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares
outstanding during the financial year, adjusted
for bonus elements in equity shares issued
during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used
in the determination of basic earnings per share to
take into account:

• the after income tax effect of interest and other
financing costs associated with dilutive potential
equity shares, and

• the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

(s) Non- Current assets held for Sale

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through a
sale transaction rather than through continuing use and
a sale is considered highly probable. They are measured
at the lower of their carrying amount and fair value
less costs to sell, except for assets such as deferred
tax assets, assets arising from employee benefits and
financial assets, which are specifically exempt from
this requirement.

An impairment loss is recognised for any initial or
subsequent write-down of the asset to fair value less
costs to sell. A gain is recognised for any subsequent
increases in fair value less costs to sell of an asset, but not
in excess of any cumulative impairment loss previously
recognised. A gain or loss not previously recognised by
the date of the sale of the non-current asset is recognised
at the date of de-recognition. Non-current assets are not
depreciated or amortised while they are classified as
held for sale.

Non-current assets classified as held for sale are
presented separately from the other assets in the
balance sheet.

(t) Recently issued accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has
reviewed the amendments, and it does not have any
significant impact on its standalone financial statements.

In August 2025, MCA notified the following
amendments to:

1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment

relates to classification of liabilities as current or non
-current and non-current liabilities with covenants.
In the context of classifying a liability as current,
it removes the requirement of existence of a right
to defer settlement for at least 12 months after
the reporting date and instead requires that the
said right should exist on the reporting date and
have substance. The amendment also introduces
guidance on classification of liabilities with
covenants. The Company has no impact of these
amendments in its classification criteria of current
and non-current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to add
supplier finance arrangements as a factor that may
cause concentration of liquidity risk. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

3. Ind AS 12, International Tax Reform - Pillar
Two Model Rules applicable immediately - The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-up tax
and require companies to disclose that they have
applied the relief. This relief is immediate and
applies retrospectively. The amendments also
require companies to provide new disclosures
to compensate for potential loss of information
resulting from the relief. Such disclosures are to be
provided for annual reporting periods beginning on
or after April 1, 2025. The Company has reviewed
the amendment and, based on its evaluation, has
determined that this amendment is not applicable
for the Company.

4.1 During the year ended March 31, 2026, the Company has subscribed to the rights issue of NSE IFSC Limited amounting to
H 250 crore.

4.2 In an earlier year, the Company has written down its investment in equity shares of NSE Foundation amounting to H0.04
crore, since it has been set up to carry out CSR activities for the Company and will not have profits which can be distributed
to the Company.

4.3 These investments includes H 3,788.95 crore (at cost) as of March 31, 2026 [March 31, 2025: H 6,072.10 crore (at cost)]
towards Risk Reserve (Refer note 11b).

4.4 Pursuant to the resolution framework approved for IL&FS group entities, the Company received units of Roadstar Infra
Investment Trust (InvIT) during the year ended March 31, 2025, as an interim distribution against its existing investment
in IL&FS debentures. In the absence of an active market and due to the uncertainty regarding the realisable value of these
units, the investment has been recognised at a nominal value of H 1 in the financial statements. The management will
continue to evaluate the valuation of these units based on developments in the InvIT's operations and marketability.

7.1 The investments in mutual funds includes H 24.64 crore (March 31, 2025: H 23.49 crore) invested from contribution
received from issuers of Listed or proposed to be Listed debt securities towards creation of "Recovery Expense Fund” as
per SEBI circular no. SEBI/HO/MIRSD/CRADT/CIR/P/2020/207 dated October 22, 2020.

7.2 The Company's investment in Non-convertibLe debenture of IL&FS Group amounting to H 80.13 crore was classified as
credit impaired in the financial year 2018-19 on account of significant financial difficulty of the issuer, disappearance of
an active market for their securities and credit rating downgrade from "AAA” to "D”. Accordingly, the Company recognised
impairment Loss of H 80.13 crore on such financial assets in the financial year 2018-19. During the year, the Company has
received an amount of H NiL (March 31, 2025: H 3.83 crore). The Company has received H 22.74 crore cumulatively tiLL
March 31, 2026 (March 31, 2025: H22.74 crore) and has reversed provision to that extent.

7.3 These investments incLudes H 1,016.05 crore (at cost) as of March 31, 2026 (March 31, 2025: H 549.55 crore [at cost])
towards Risk Reserve (Refer note 11b).

7.4 Investments are heLd by the Company as a custodian of defauLter members.

Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of H 1 per share. They entitle the holder to participate in
dividends. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders. Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and
upon a poll each share is entitled to one vote.

11a.1 Aggregate number and class of shares allotted as fully paid up by way of bonus shares during the
current year and for the period of five years immediately preceding the date at which the Balance sheet is
prepared.

Pursuant to approval by the shareholders of the Company, the Board of Directors in their meeting dated November 04, 2024
has allotted 198 crore number of equity shares of H 1/- each as fully paid up bonus shares in the ratio of 4 (four) bonus shares of
H 1/- each for every existing 1 (one) fully paid-up equity share of H 1/- each (4:1) held by the equity shareholders of the Company
as on the record date of November 02, 2024. Consequently, the paid-up equity share capital of the Company stands increased
to H 247.50 crore.

Note 1: The Board of Directors, in their meeting held on May 6, 2025, proposed a dividend of H 35/- per equity share which has
been approved by the shareholders at the Annual General Meeting held on August 25, 2025. The total dividend paid during the
year ended March 31, 2026 amounted to H 8,662.50 crore.

Note 2: The Board of Directors, in their meeting held on May 3, 2024, proposed a dividend of H 90/- per equity share (Pre-Bonus
issuance) which has been approved by the shareholders at the Annual General Meeting held on August 27, 2024. The total
dividend paid during the year ended March 31, 2025 amounts to H 4,455 crore.

Note 3: The Board of Directors of the Company in their meeting held on May 5, 2026, have recommended a final dividend of
H 35/- per equity share of H 1/- each (3500%) for the year ended March 31, 2026, subject to approval of the shareholders at the
ensuing Annual General Meeting. This includes a special one-time dividend of H 10/- per equity share.

b) In respect of Trading Access Point (TAP) matter, the Company after getting its Board approval filed Revised Settlement
Terms (RST) with SEBI for a settlement on June 14, 2024. SEBI vide its email dated September 20, 2024, issued a
Notice of Demand for H 643.05 crore in response to the RST as consolidated settlement amount. The Company has
paid the said amount of H 643.05 crore on September 25, 2024 and the same is included in other expenses for year
ended March 31, 2025. The Settlement Order in this regard was passed by SEBI on October 4, 2024.

24.1 It includes contribution to National Stock Exchange Investor Protection fund trust formed as required under SEBI regulation,
which amounts to 3% of Listing fees income.

24.2 a) The Company received a letter dated April 12, 2023 issued by SEBI in reference to the inspection of the Company for

the period from February 1, 2021 to March 2022 (“Letter”). The Company filed a consolidated settlement application
before SEBI on August 10, 2023. SEBI vide email dated June 18, 2025 accepted the settlement application on
composite payment by the Company for an amount of H 40.35 crore. The Company made the payment of H 40.35
crore to SEBI on June 25, 2025 and the same is included in other expenses for the year ended March 31, 2026. The
Settlement Order in this regard was passed by SEBI on July 31, 2025.

25.1 The Company does not have any outstanding dilutive potential equity shares. Consequently, the basic and diluted earning
per share of the Company remain the same.

26 Disclosure under Indian Accounting Standard 19 (Ind AS 19) on Employee Benefit as
notified under Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016.

i) Defined contribution plan

a) Superannuation Fund: The Company's contribution towards superannuation fund during the year ended March 31, 2026
amounting to H 0.52 crore (March 31, 2025: H 0.59 crore) has been charged to the standalone statement of Profit & Loss.

b) Provident Fund: The Company is registered with Regional Provident Fund Office, Bandra, Mumbai, and both the employee
and the employer make monthly contribution equal to 12% of the employee's basic salary respectively. The Company has
contributed H 13.46 crore and H 10.85 crore towards Provident Fund to Employee Provident Fund Organisation during the
year ended March 31, 2026, and March 31, 2025, respectively.

ii) Defined benefit plan

a) Gratuity: The Company was providing for gratuity for employees as per Payment of Gratuity Act, 1972. With effect from
November 21,2025, Gratuity is being provided for employees as per Code on Social Security, 2020. Employees who are
in continuous service for a period of 5 years are eligible for gratuity, The amount of gratuity is payable on retirement/
termination of the employee's last drawn monthly wages as per new labour code multiplied for the number of years of
service. The gratuity plan is a funded plan and the Company makes contribution to recognised funds with Life Insurance
Corporation of India (LIC).

On November 21, 2025, the Government of India notified the Code on Wages, 2019, the Industrial Relations Code, 2020,
the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, collectively
referred to as the 'New Labour Codes', consolidating 29 existing labour laws. The Company has reassessed the existing
employee benefit obligations. Considering the impact arising out of an enactment of the new legislation is an event of non¬
recurring nature, The Company has presented incremental provision of H 90.07 crore as “Impact of New Labour Codes”
under “Exceptional Items” in the standalone financial statements. The Company continues to monitor the finalisation of
Central and State Rules in relation to the New Labour Codes and would provide consequential accounting effect on the
basis of such developments and any revisions to the Company's staff emoluments from time to time, as needed.

(vi) Expected contribution to gratuity plan for the year ending March 31, 2027 are K 24.44 crore.

(b) Leave:

(i) The leave obligations cover the Company's Liability for earned Leave which are classified as other Long-term benefits.

The entire amount of the provision of H 55 crore (March 31, 2025: H 45.12 crore) is presented as current, since the Company
does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience,
the Company does not expect all employees to avail the full amount of accrued leave or require payment for such leave
within the next 12 months.

27 Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of
the operating segments, has been identified as the Managing Director and CEO of the Company. The Company operates
only in one Business Segment i.e. facilitating trading in securities and the activities incidental thereto within India, hence
does not have any reportable Segments as per Indian Accounting Standard 108 "Operating Segments". The Company
while presenting the consolidated financial statements has disclosed the segment information as to the extent applicable
as required under Indian Accounting Standard 108 "Operating Segments".

28

(i) Fair value hierarchy:

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each
level follows underneath the table.

The fair value of financial instruments as referred to in note above have been classified into three categories depending on the
inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical
assets or liabilities (level 1 measurements) and lowest priority to unobservable inputs (level 3 measurements). The categories
used are as follows:

- Level 1:

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and
mutual funds. The fair value of all equity instruments which are traded on the stock exchanges are valued using the closing price
as at the end of the reporting period. Listed Mutual Funds are valued using the closing quoted NAV.

- Level 2:

The fair value of financial instruments that are not traded in an active market (for example, government securities is
determined using Financial Benchmarks India Private Limited valuation techniques which maximise the use of observable
market data, fixed maturity plan based on NAV declared by the fund) and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

- Level 3:

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the
case for unlisted equity securities included in level 3.

- The Company's policy is to recognise transfers into and transfers out of fair value hierarchy level as at the end of reporting period.

- There were no transfers between levels during the year ended March 31, 2026 and year ended March 31, 2025.

ii) Valuation technique used to determine fair value:

Specific valuation techniques used to value financial instruments include:

- The use of quoted market prices or dealer quotes for similar instruments.

- The fair value of the remaining financial instruments is determined using discounted cash flow analysis and price to book
value multiple, as applicable.

(v) Valuation processes:

Treasury team of Finance department performs the valuations of financial assets for financial reporting purposes. This
team reports to the Chief Financial Officer (CFO). Valuation for various level of financial instruments are derived as per the
below process.

Level 1: The Valuation is based on quoted prices in active markets, for the financial assets. This is the most reliable input and
is given the highest priority. This Includes debt mutual funds, whose NAV are derived from the authentic sources and quoted
equity instruments listed on Stock exchange.

Level 2: Inputs other than quoted prices in active markets that are observable, either directly or indirectly. This includes
Government securities whose valuation are conducted based on observable data like interest rates or yield curves.

Level 3: This Valuation in based on inputs that are not based on observable market data and may require an entity to make
assumptions or judgements about future cash flows or other factors. This includes Unquoted Equity Instrument.

At the year-end external valuers are engaged to provide independent valuation of level 3 instruments.

The valuation of financial assets as per the above process is conducted at every reporting period, by the Treasury team and
discussed with CFO.

The carrying amounts of trade receivables, trade payables, other receivables, cash and cash equivalent including other current
bank balances and other liabilities are considered to be approximate their fair values, due to current and short-term nature of
such balances.

The fair value of taxable bonds, tax free bonds, certificate of deposits with banks, fixed deposits, commercial papers, and
security deposit are based on discounted cash flow.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The
Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period.

29 In compliance with Ind AS 24 - "Related Party Disclosures”, as notified under Rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016, the required disclosures
are given in the table below:

29.1 As the liabilities for defined benefit plan are provided on actuarial basis for the Company as a whole, the amount pertaining
to key managerial persons are not included.

29.2 Includes 50% of the variable pay payable after 3 years subject to certain conditions.

29.3 Outstanding balances as at the year end are unsecured and settlement occurs in cash. The Company has not recorded
any impairment of receivables relating to amount owed by related parties.

29.4 Other than as disclosed in note 31(I)(g) there have been no guarantee provided or received for any related parties
receivable or payables as of and for the year ended March 31, 2026 and March 31, 2025.

31 Contingent liabilities, litigations and other regulatory matters

(I) (a) The Company had received three separate Show Cause Notices (SCN) from Securities and Exchange Board of India

(“SEBI”) on May 22, 2017, July 03, 2018, and July 31, 2018, against the Company and some of its former employees,
in respect of Company's Colocation facility (“Colocation”), Dark Fibre (“Dark Fibre”) and Governance and conflict of
interest related matters (“Governance and COI”). Subsequently, SEBI's Whole-Time Member (WTM) passed orders
in respect of all the three SCNs vide its letter dated April 30, 2019.

SEBI WTM vide its order dated April 30, 2019, directed the Company inter-alia to disgorge an amount of H 624.89 crore
along with interest at the rate of 12% per annum from April 01, 2014, till the actual date of payment and certain non¬
monetary and restrictive directions including prohibiting the Company from accessing securities market, for a period
of six months from the date of the order (“Colocation WTM Order”). SEBI Adjudicating Officer ("AO") had also passed
an order dated February 10, 2021 (“Colocation AO Order”) covering the above issues pertaining to Colocation and
levied a monetary penalty of H 1 crore on the Company. The Company preferred appeals before the Hon'ble Securities
Appellate Tribunal (SAT) against the Colocation WTM Order and the Colocation AO Order. SAT vide its order dated
January 23, 2023, upheld the non-monetary directives under the Colocation WTM Order but set aside SEBI's direction
for disgorgement and directed to pay a sum of H 100 crore to be deposited in Investor Education & Protection Fund
for lack of due diligence by NSE. Further, SAT vide its order dated July 12, 2023 set aside the Colocation AO Order.

SEBI appealed against both the SAT Orders related to Colocation matter before the Supreme Court. Both the appeals
are pending for final hearing and disposal. The Supreme Court vide an interim order dated March 20, 2023, directed
SEBI to refund H 300 crore to the Company in the Colocation WTM appeal.

SEBI WTM vide its order dated April 30, 2019 directed the Company to deposit a sum of H 62.58 crore along with
interest at the rate of 12% p.a. from September 11, 2015, till the actual date of payment along with certain non¬
monetary and restrictive directions (“Dark Fibre WTM Order”). SEBI Adjudicating Officer ("AO") had also passed an
order dated June 28, 2022 (“Dark Fibre AO Order”) covering the above issues pertaining to Dark Fibre and levied a
monetary penalty of H 7 crore on the Company. The Company preferred appeals before SAT against the Dark Fibre
WTM Order and the Dark Fibre AO Order.

SAT vide its order dated August 9, 2023, allowed the appeal to the extent that the Dark Fibre WTM order for
disgorgement was reversed. Further, SAT vide its order dated December 14, 2023 set aside the Dark Fibre AO Order.

SEBI appealed against both the SAT Orders related to Dark Fibre matter before the Supreme Court. Both the Appeals
are pending for final hearing and disposal. Supreme Court vide an interim order dated October 17, 2023, directed
SEBI to refund H 31 crore to the Company in the Dark Fibre WTM Appeal.

SEBI WTM vide its order dated April 30, 2019, passed certain non-monetary and remedial directions against the
Company (“Governance WTM Order”). SEBI Adjudicating Officer ("AO") had also passed an order dated June 30,
2022 (“Governance AO Order”) covering the above issues pertaining to Governance and conflict of interest and
levied a monetary penalty of H 1 crore on the Company. The Company filed separate appeals before the SAT against

the Governance WTM and Governance AO orders. The Company withdrew the said appeals on July 24, 2024. On
July 29, 2024, the Company has paid the monetary penalty of H 1 crore along with interest under the Governance AO
Order and has updated SEBI about the status of the compliances of the non-monetary directions of the Governance
WTM Order.

On June 20, 2025, the Company filed two separate settlement applications for a cumulative amount of H 1,387.39
crore with SEBI under SEBI (Settlement Regulations) 2018 for settlement of:

i) Colocation WTM Order and Colocation AO Order; and

ii) Dark Fibre WTM Order and Dark Fibre AO Order.

Subsequently, on March 13, 2026, the company filed revised settlement terms for a cumulative amount of H 1,491.21
crore with SEBI in respect of the above matters.

The Settlement applications are pending for final disposal with SEBI, the future outcome of which is uncertain at
this stage.

In the light of pending outcomes of the above settlement applications, the Board of Directors of the Company have
considered deferment of other legal proceedings in this regard. Consequently, the Company has recognised a
provision of H 1,391.21 crore for the year ended March 31, 2026. This is in addition to H 100 crore imposed by the
Hon'ble SAT in the Colocation WTM Appeal which had been duly adjusted against the amount deposited by the
Company with SEBI during the year ended March 31, 2023.

The said provision, after netting off the deposit lying with SEBI, is included under current provision.

(b) The Company received Show Cause Notice on July 31, 2020 (“SCN”) alleging that investments made by NSE and its
subsidiary in certain entities that are engaged in activities that were unrelated and non-incidental to its activities as
a stock exchange. SEBI AO vide order dated October 01, 2020, had levied a penalty of H 6 crore (“AO Order”).

The Company preferred an Appeal before the Hon'ble SAT against the AO order. SAT vide its order dated January
04, 2022, set aside the AO Order (“SAT Order”). SEBI preferred an appeal before the Hon'ble Supreme Court. No
stay has been granted in favour of SEBI. Pleadings are complete and the matter is due for final hearing. Based on the
opinion of the external legal counsel, the management believes that it has strong grounds to contest this order and
has concluded that no provision for any liability in this regard is required to be made.

(c) SEBI AO vide order dated April 12, 2022, levied penalty of H 2 crore on the Company with respect to the default of
Karvy Stock Broking Limited, erstwhile trading member registered with the Company. The Company has preferred
an appeal against the said SEBI order before the Hon'ble SAT. The Hon'ble SAT vide its interim order dated June
24, 2022, has stayed the effect and operation of the said SEBI AO order. The Appeal before SAT is pending for final
hearing and disposal. Based on the opinion of the external legal counsel, the management believes that it has strong
grounds to contest the above appeal filed against the Company. In view of the same, no provision for any liability in
this regard is considered necessary, as an adverse outcome is not considered probable.

(d) The Company has received various correspondences on matters relating to operations of the Company, including
inspections from SEBI which have been replied to by the Company. Basis the replies filed, the Company's management
do not expect any material impact on the financial statements of the Company.

(e) A complaint was filed by Metropolitan Stock Exchange of India Ltd (MSEI) before the Competition Commission of India
(CCI) alleging that the Company is in a dominant position in the stock exchange services market, and it has abused its
dominance by engaging in predatory pricing in the newly established in the Currency Derivatives (CD Segment). CCI
vide its order dated June 23, 2011 (“CCI Order”) held that the Company is a dominant undertaking in CD Segment
and imposed a penalty of H 55.50 crore on NSE. The Company preferred an appeal before the Competition Appellate
Tribunal (COMPAT) against the CCI Order. While upholding the penalty, the COMPAT vide its order dated August 05,
2014 (“COMPAT Order”), also expanded the scope and held that the relevant market comprises of all the segments
of NSE and not just CD Segment.

The Company preferred an appeal before the Supreme Court against the COMPAT Order. Vide an interim order dated
September 23, 2014, the Supreme Court stayed the COMPAT Order.

Further, basis the COMPAT Order, MSEI has filed a compensation claim of H 856.99 crore before the National Company
Law Appeiiate Tribunal (NCLAT). The said compensation claim has also been stayed by the Supreme Court vide its
order dated February 12, 2018.

Pleadings are complete and the matter is due for final hearing. Based on the opinion of the external iegai counsel,
the management believes that it has strong grounds to contest this order and has concluded that no provision for any
liability in this regard is required.

(f) SEBI vide an ex-parte ad-interim order dated November 22, 2019 (“Karvy Order”) against Karvy Stock Broking Limited
(“Karvy”) held that Karvy has incorrectly pledged clients' securities from Karvy's demat account named KARVY
STOCK BROKING LTD (BSE) (said DP Account) with Banks as security for loans and has used the funds received
against this for its own purposes (rather than using it for the client's margin/coiiaterai obligations). Banks viz. Axis
Bank, ICICI Bank, HDFC Bank, Bajaj Finance Ltd & IndusInd Bank fiied their respective Appeais before the SAT against
the Karvy Order. SAT vide its order dated December 20, 2023 (“SAT Order”) aiiowed the Appeais in favour of Banks
and inter aiia directed SEBI, NSE and NSDL to restore the piedge made in favour of the Banks within 4 weeks from
the date thereof, or aiternativeiy compensate the Banks with the vaiue of the underiying securities piedged in their
favour aiong with 10% interest p.a. within a period of 4 weeks. Aggrieved by the SAT Order, NSE, SEBI, NSDL have
fiied their respective Appeais before the Supreme Court. Vide order dated January 25, 2024, the Supreme Court has
stayed the effect and operation of the SAT Order against SEBI. Based on the opinion of the externai iegai counsei,
the management beiieves that it has strong grounds to contest this order and has conciuded that no provision for any
iiabiiity in this regard is required to be made.

(g) NSE IFSC CC Limited has avaiied Bank Guarantee faciiity from Standard Chartered Bank to the tune of USD 50
miiiion (H 473.27 crore) as at March 31, 2026 (March 31, 2025: USD 50 miiiion (H 425.50 crore). In respect of this,
the Company has provided corporate guarantee to the bank and is outstanding as at the period end.

(II) Other contingent iiabiiities inciude disputed demand on account of the foiiowing:

(a) Income Tax: H 104.62 crore (March 31, 2025: H 121.35 crore) aiong with interest thereon.

(b) Service Tax, GST & MVAT: H 82.14 crore (March 31, 2025: H 99.30 crore) aiong with penaity thereon.

The Company's pending iitigations comprise of ciaims against the Company and proceedings pending with Statutory and
Tax Authorities. The Company has reviewed aii its pending iitigations and proceedings and has made adequate provisions,
wherever required and disciosed the contingent iiabiiities, as appiicabie, in its financiai statements as described above.
The Company does not expect the outcome of these proceedings to have a materiai impact on its financiai statements as
at March 31, 2026.

(III) Other ciaims against the company not acknowiedged as debts amounts to: H 26.15 crore (March 31, 2025: H 26.15 crore).

32 Details of dues to Micro, Small and Medium Enterprises as defined under the MSMED
Act, 2006

Trade Payabies inciudes H 34.35 crore (March 31, 2025: H 15.47 crore) due to Micro & Smaii Enterprises. Totai outstanding
dues to Micro & Smaii Enterprises have been determined to the extent such parties have been identified on the basis of
information avaiiabie with the Company. The Company has certain dues to suppiiers registered under Micro, Smaii and
Medium Enterprises Deveiopment Act, 2006 ("MSMED Act"). The disciosure pursuant to the said MSMED Act are as foiiows.

Nature of CSR Activities: NSE Foundation, a group company undertakes the following CSR activities which includes

Primary Education, Sanitation and Safe Drinking Water, Eider Care, Skiii Development And Entrepreneurship, Environment
Sustainability, Health and Nutrition, Disaster Relief and Rehabilitation, Incubation, Sports, Research and Studies in areas
specified in Schedule VII including promoting education.

33.1 The Company has transferred the unspent CSR amount to a separate bank account for its ongoing projects: (Refer note
5.3 & 10.3)

1. Construction of NSE Muitispeciaiity Block and Bone Marrow Transplant Centre.

2. Construction of OT fioor for Pune Vaidyakiya Seva Sanshodhan Pratisthan with medicai equipment.

3. Creation of a Generai Ward with equipment at Dr. Babasaheb Ambedkar Vaidyakiya Pratisthan.

4. Construction of OPDs in Madhav Netraiaya Premium Centre Eye Hospitai.

(iii) Extension and termination options

Extension and termination options are inciuded in many of the ieases. In determining the iease term, the Management
considers aii facts and circumstances that create an economic incentive to exercise an extension option, or not exercise
a termination option. This assessment is reviewed if a significant event or a significant change in circumstances occurs
which affects this assessment and that is within the controi of the Company. Extension option are inciuded in the iease
term in case it is reasonabie certain to be extended.

38 Financial Risk Management

The Company's business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit
risk. The Company's risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the company's activities. The Company's
senior management has the overall responsibility for developing and implementing the Company's risk management
policies. The Company has constituted a Risk Management Committee to oversee the implementation of the Company's
risk management policies.

The Risk Management Committee of the Company is supported by the Treasury Committee that provides assurance that
the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with the Company's policies and risk objectives.

There is a dedicated Treasury department to ensure Treasury investments are made as per the approved Prudential norms
of Investment.

A Management of Liquidity Risk

Liquidity risk is the risk that the Company will face difficulties in meeting its obligations associated with its financial
liabilities. The Company's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities
when due without incurring avoidable costs. In doing this, management considers both normal and stressed conditions.
A material and sustained shortfall in the Company's cash flow could impair investor confidence.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the year ended March 31,
2026 and year ended March 31, 2025. Cash flows from operating and investing activities provides the funds to service the
financing of liabilities on a day-to-day basis.

The Company's treasury department regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going
basis to meet operational needs. Any short-term surplus cash generated by the operations, over and above the amount
required for working capital management and other operational requirements, is retained as cash and cash equivalents
(to the extent required) and any excess is invested in interest bearing deposits, other marketable debt investments not
invested in equity linked funds including government securities, mutual funds and exchange traded funds with appropriate
maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

B Management of Market Risk

The Company's size and operations result in it being exposed to the following market risks that arise from its use of
financial instruments:

• price risk; and

• interest rate risk

The above risks may affect the Company's income or the value of its financial instruments. The objective of the Company's
management of market risk is to maintain this risk within acceptable parameters, while optimising returns. The Company's
exposure to, and management of, these risks is explained below.

C Management of Foreign Exchange Risk

The Company enters transactions requiring remittance in foreign currency at a future date. The Company uses forward
contracts to manage its exposure to currency fluctuations on foreign exchange settlements arising from anticipated
payment remittance transactions. Forward contracts are governed by the forex risk management policy as approved by the
Board of the Company and are used as part of the Company's risk management strategy to mitigate the impact of exchange
rate volatility. The Company follows the Mark-to-Market (MTM) method for accounting of these foreign exchange forward
contracts and measure the open contracts at each reporting date at fair value. Any gains or losses arising from changes in
fair value and cancellation/rollover of the forward contracts are recognised in the Statement of Profit and Loss.

D Management of Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Trade receivables

Concentrations of credit risk with respect to trade receivables are limited, due to the Company's customer base being large
and diverse and also on account of member's deposits kept by the Company as collateral which can be utilised in case
of member default. All trade receivables are reviewed and assessed for default on a quarterly basis. Based on historical
experience of collecting receivables, supported by the level of default, the Company's assessment of credit risk is low.
Accordingly, the provision for expected credit loss on trade receivable is not material as they are settled fairly quickly.

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks/financiai institutions and
investments in marketable debt investments including the government securities and mutual funds. The Company has
diversified portfolio of investment with various number of counter-parties which have secure credit ratings hence the
risk is reduced. Individual risk limits are set for each counter-party based on financial position, credit rating and past
experience. Credit limits and concentration of exposures are actively monitored by the Company's Treasury department.
The Company's investments are primarily into AAA/AA high rating instruments and based on the historical experience of
investee company, the Company's our assessment for credit risk is iow. Accordingly, the provision for expected credit loss
on other financial assets is not material.

The Company's maximum exposure to credit risk as at March 31, 2026, and March 31, 2025, is the carrying value of each
class of financial assets as disclosed in note 4, 5, 7, 8, 9 and 10.

E Concentration Risk

The Company does not have any single customer/suppiier which constitute more than 10% of the total trade receivables/
trade payabies balance as at March 31, 2026 and March 31, 2025.

38E

Concentration risk not shown separately for Clearing & Settlement charges paid/payabie to NSE Clearing Ltd as the disclosure
is made in reiated party transactions. Refer note 29(b)

39 Capital Management

The Company considers the foiiowing components of its Baiance Sheet to be managed capitai:

Totai equity (as shown in the baiance sheet, inciuding share capitai, share premium, retained profits, other reserves).

The Company manages its capitai so as to safeguard its abiiity to continue as a going concern and to optimise returns to
its sharehoiders. The capitai structure of the Company is based on management's judgement of the appropriate baiance
of key eiements in order to meet its strategic and day-to-day needs. The Company considers the amount of capitai in
proportion to risk and manage the capitai structure in iight of changes in economic conditions and the risk characteristics
of the underiying assets. The Company has assessed reserve requirement towards adequate risk capitai management
and transferred an excess amount of H 3,728.00 crore from risk reserves to retained earnings within equity during the
year ended March 31, 2026 (March 31, 2025: H Nii). This has been determined taking into consideration various factors
and risks inciuding market risk, credit risk, members defauit risk, operationai risk, etc. In order to maintain or adjust the
capitai structure, the Company may adjust the amount of dividends paid to sharehoiders, return capitai to sharehoiders
or issue new shares.

The Company's poiicy is to maintain a stabie and strong capitai structure with a focus on totai equity so as to maintain
investors, creditors and market confidence and to sustain future deveiopment and growth of its business. The Company
wiii take appropriate steps in order to maintain, or if necessary adjust, its capitai structure. The Company is not subject to
financiai covenants in any of its significant financing agreements.

The Company's management monitors the return on capitai as weii as the ievei of dividends to sharehoiders. The
Company's goai is to continue to be abie to return excess iiquidity to sharehoiders by continuing to distribute dividends in
future periods. Refer note 11 (b) for the finai dividend deciared and paid.

Compliance with externally imposed capital requirements:

In accordance with reguiation 14 of Securities Contracts (Reguiation) (Stock Exchanges and Ciearing Corporations)
Reguiations, 2018, as amended from time to time, the Company shaii have a minimum net worth of H 100 crore at aii
times. The Company is in compiiance with this requirement.

40 Additional Regulatory Information required by Schedule III

(i) Details of Benami Property held

No proceedings have been initiated on or are pending against the Company for hoiding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Ruies made thereunder.

(ii) Borrowing secured against current assets

The Company doesn't have any borrowings from banks and/or financiai institutions.

(iii) Wilful Defaulter

The Company has not been deciared wiiifui defauiter by any bank or financiai institutions or government or any
government authority.

(iv) Relationship with struck off Companies

The Company has no transactions with the companies struck off under the Companies Act, 2013.

(v) Compliance with number of layer of Companies

The Company has compiied with the number of iayers prescribed under the Companies Act, 2013.

(vi) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financiai year.

(vii) Utilisation of Borrowed funds and Share premium

No funds have been advanced or ioaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds by the Company to or in any other person or entity, inciuding foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shaii iend or invest in party identified by
or on behaif of the Company (Uitimate Beneficiaries). The Company has not received any fund from any party (Funding
Party) with the understanding that the Company shaii whether, directiy or indirectiy iend or invest in other persons or
entities identified by or on behaif of the Company (“Uitimate Beneficiaries”) or provide any guarantee, security or the iike
on behaif of the Uitimate Beneficiaries.

(viii) Undisclosed Income

There is no income surrendered or disciosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency of virtual currency

The Company has not traded or invested in crypto currency or virtuai currency during the current or previous year.

(x) Valuation of PP&E, intangible asset and investment property

The Company has not revaiued its property, piant and equipment (inciuding right-of-use assets) or intangibie assets during
the current or previous year. The fair vaiue of investment property (as measured for disciosure purposes in the financiai
statements) is based on the vaiuation by a registered vaiuer as defined under ruie 2 of Companies (Registered Vaiuers
and Vaiuation) Ruies, 2017.

(xi) Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favor of the lessee), as disclosed in note no. 2 to the financial statements, are held in the
name of the Company.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(xiii) Core Investment Company (CIC)

The Company has one subsidiary company namely NSE Investments Ltd which is a deemed CIC and is not required to be
registered with RBI as per the directions laid down in Core Investment Companies (Reserve Bank) Directions, 2016. There
are no other CIC in the group.

(xiv) Loans or advances to specified persons

The Company has not granted any loans or advances to promoters, directors, KMPs and related parties either severally
or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period for repayment

41 The Board of Directors of the Company in their meeting held on March 23, 2023, approved the voluntary contribution at
2% of the transaction charges earned to the Core Settlement Guarantee Fund (Core SGF) to maintain the corpus of the
said Fund based on the assessment of the current trends in volumes and overall increase in market activities. Further,
SEBI vide its letter no. SEBI/HO/MRD-PoD-2/P/OW/2024/15969/1 N/2024/15969/1 dated May 3, 2024, advised NSE to
augment Core SGF of F&O segment of NSE Clearing Ltd (NCL) to H 10,500 crore.

Accordingly, the Company continued voluntary contribution at 2% of the transaction charges earned to the Core SGF till
December 31, 2024. Further as, the desired corpus of Core SGF to be maintained by NCL had reached the stipulated level,
the Board of Directors of NSE in their meeting held on February 4, 2025, approved discontinuation of voluntary contribution
at 2% of the transaction charges to the Core SGF effective January 1, 2025.

42 The Company holds 24% shares in National Securities Depository Limited (NSDL). As per Regulation 22 of the SEBI
(Depositories and Participants) Regulations, 2018 (DP Regulations), the Company was required to bring down its
shareholding from 24% to 15% within five years from the date of commencement of the DP Regulations i.e by October 03,
2023 against which extension was taken by the NSE. During the year ended March 31, 2026, the Company has sold 9%
shares of NSDL through offer for sale which resulted in a pre-tax gain of H 1,362.57 crore which is shown as an "Exceptional
Items" in the financial statement.

The Management of the Company has assessed the above direction of SEBI and concluded that the Company continues
to exercise significant influence in accordance with Ind AS 28 - Investments in Associates and Joint Ventures.

43 There are no events subsequent to the reporting date which would have an impact on the financial statements.

44 In accordance with the relevant provisions of the Companies Act, 2013, the Company has long-term contracts as of
March 31, 2026, and March 31, 2025, for which there were no material foreseeable losses. The Company did not have any
material derivative contracts as at March 31, 2026 and March 31, 2025.

45 For the year ended March 31, 2026, and March 31, 2025, the Company is not required to transfer any amount to the Investor
Education & Protection Fund as required under section 125 of the Companies Act, 2013.