Islamicly has screened NSE for Shariah compliance on its results for the year ended 31 March 2026 (FY26). This report sets out the Shariah screening result, how much of NSE's income is non-permissible, and how the company measures against the AAOIFI-prescribed debt and cash limits.
Under Islamicly's Shariah framework, shares in a listed company may be considered permissible to own and trade when the underlying business activity and the applicable financial criteria both satisfy the Shariah screening methodology as prescribed by AAOIFI standards and reviewed by Islamicly's globally renowned Shariah Supervisory Board.
NSE is Shariah non-compliant on Islamicly's FY26 screening (year ended 31 March 2026). Non-permissible income is 85.24% of revenue, above the 5% limit. Debt ratio 1.13% and cash ratio 13.08% are both below the 30% limit. Dividend purification ratio: 100%. This stock is not investable; 100% of all gains need to be purified.
Shariah Screening Result for NSE
| Screen | Result |
|---|---|
| Business Activity | Fail |
| Debt Compliance | Pass |
| Cash Compliance | Pass |
| Overall Shariah Compliance | Shariah Non-compliant |
NSE Shariah Compliance at a Glance
NSE fails the business activity screen. Non-permissible income is 85.24% of revenue, more than twice the 5% limit, so the stock is Shariah non-compliant even though it passes both financial ratios: the debt ratio is 1.13% and the cash ratio 13.08%. The stock is not investable, so 100% of all gains need to be purified.
| Screen | Result | Limit | Status |
|---|---|---|---|
| Non-permissible revenue | 85.24% | below 5% | Fail |
| Debt ratio | 1.13% | below 30% | Pass |
| Cash ratio | 13.08% | below 30% | Pass |
| Dividend purification ratio | 100% | — | — |
Ticker: 544937 (BSE) | Sector: Investment Services | Screening period: FY26, year ended 31/03/2026.
Company Overview
National Stock Exchange of India (NSE) runs India's largest stock exchange by trading volume, with markets in equities, equity, currency, interest-rate and commodity derivatives, and debt. Its clearing corporation, NSE Clearing, clears and settles those trades, and NSE also earns from listing, market data, connectivity and co-location, and Nifty index licensing. On World Federation of Exchanges data for 2025, it is the world's largest equity derivatives exchange by number of contracts. NSE's shares listed on BSE on 24 September 2026.
Revenue Composition
| Segment | Revenue ₹ Mn | Non-permissible ₹ Mn | Non-permissible % |
|---|---|---|---|
| Transaction charges | 1,30,570.12 | 1,30,570.12 | 100% |
| Clearing and settlement services | 2,514.51 | 2,514.51 | 100% |
| Other operating revenues (income on margin funds) | 8,416.91 | 8,416.91 | 100% |
| Listing services | 3,524.36 | — | — |
| Data connectivity charges | 11,287.91 | — | — |
| Data feed and terminal services | 4,700.74 | — | — |
| Index licensing and data subscription fees | 1,518.45 | — | — |
| Data centre rack charges | 2,051.75 | — | — |
| National Securities Depository Ltd (NSDL) | 690.80 | 690.80 | 100% |
| Receivables Exchange of India Ltd | 234.90 | 234.90 | 100% |
| Power Exchange India Ltd | 92.45 | — | — |
| Indian Gas Exchange Ltd | 107.22 | — | — |
| Other operating income | 1,428.34 | — | — |
| Rental income | 107.86 | — | — |
| Miscellaneous income | 1,628.44 | — | — |
| Total | 1,68,874.76 | 1,42,427.24 | 84.34% |
Non-permissible revenue is the part of a revenue or income line that is not Shariah-compliant, shown here for the year ended 31 March 2026. The screen's operating income also includes NSE's share of profit from NSDL, Receivables Exchange of India, Power Exchange India and Indian Gas Exchange, and rental and miscellaneous income, which the company reports outside revenue from operations.
Segment Analysis
Trading and clearing — Shariah Non-permissible. ₹1,33,084.63 Mn, 78.81% of operating revenue: transaction charges on trades, mainly in equity futures and options, and fees for clearing and settling trades through NSE Clearing. NSE's markets also include interest-rate and currency derivatives and debt securities. The screen counts all of this revenue as non-permissible.
Income on margin funds — Shariah Non-permissible. ₹8,416.91 Mn, 4.98% of operating revenue: income from investing margin money and cash collateral from clearing members and deposits from trading members. It is interest-based, so it is non-permissible in full.
Listing, data and technology services — Shariah Permissible. ₹23,083.21 Mn, 13.67% of operating revenue: listing fees, connectivity and co-location services for trading members, market data feeds and terminals, and Nifty index licensing and data subscriptions. Permissible in full.
Depository and receivables financing — Shariah Non-permissible. ₹925.70 Mn, 0.55% of operating revenue: NSE's share of profit from NSDL, a depository that holds shares, bonds and other securities in electronic form, and from Receivables Exchange of India, where small businesses raise finance against trade receivables from banks. Both are classified as conventional finance, so they are non-permissible in full.
Power and gas exchanges — Shariah Permissible. ₹199.67 Mn, 0.12% of operating revenue: NSE's share of profit from Power Exchange India and Indian Gas Exchange, which run electricity and natural-gas trading platforms. Permissible in full.
Other income — Shariah Permissible. ₹3,164.64 Mn, 1.87% of operating revenue: other operating income, rent and miscellaneous income; no link to prohibited activities was found. Treated as permissible.
Shariah Considerations and Concerns Applicable to National Stock Exchange of India Ltd
Running a market for shares is permissible in principle. NSE fails because most of its revenue comes from trading and clearing in instruments that are not Shariah-compliant, such as futures and options, interest-rate derivatives and debt, and because it earns interest on margin funds and its own investments.
Trading and clearing in conventional instruments, mainly futures and options, interest-rate derivatives and debt; income on margin funds from clearing and trading members; interest income on its own investments; and gains on mutual funds and forward contracts.
Operating revenue: ₹1,42,427.24 Mn (84.34%) of operating revenue is non-permissible: transaction charges (₹1,30,570.12 Mn), income on margin funds (₹8,416.91 Mn), clearing and settlement services (₹2,514.51 Mn), and NSE's share of profit from NSDL and Receivables Exchange of India (₹925.70 Mn).
Interest income was ₹10,304.99 Mn, on financial assets held at amortised cost (₹8,753.80 Mn) and at fair value through other comprehensive income (₹1,551.19 Mn). Interest (ribā) is non-permissible in full. On its own, it is 5.75% of the sector base, which would also fail the 5% limit.
Non-operating income was ₹9,079.32 Mn, of which ₹9,066.38 Mn (99.86%) is non-permissible: ₹8,980.62 Mn of gains on mutual funds held at fair value through profit or loss, ₹80.58 Mn of foreign exchange gains on forward contracts and ₹5.18 Mn of dividends on equity investments held at fair value through other comprehensive income. The ₹12.94 Mn gain on disposal of property, plant and equipment is permissible.
Non-permissible income is 85.24% of the sector base, so the stock fails the business sector screen. It passes debt compliance and cash compliance, but a single failed screen is enough: the stock is classified Shariah non-compliant. This stock is not investable: 100% of all gains need to be purified, and investors who hold the shares should seek guidance on disposing of them.
Shariah Assessment of Income
| Interest income | Amount ₹ Mn | Non-permissible ₹ Mn | % |
|---|---|---|---|
| Interest income from financial assets at amortised cost | 8,753.80 | 8,753.80 | 100% |
| Interest income from financial assets at FVOCI | 1,551.19 | 1,551.19 | 100% |
| Total | 10,304.99 | 10,304.99 | 100% |
| Other non-operating income | Amount ₹ Mn | Non-permissible ₹ Mn | % |
|---|---|---|---|
| Dividend income from equity investments at FVOCI | 5.18 | 5.18 | 100% |
| Gain on mutual funds at FVTPL | 5,445.64 | 5,445.64 | 100% |
| Gain on sale of mutual funds at FVTPL | 3,534.98 | 3,534.98 | 100% |
| Gain on disposal of property, plant and equipment | 12.94 | — | — |
| Gain on foreign exchange (forward contracts) | 80.58 | 80.58 | 100% |
| Total | 9,079.32 | 9,066.38 | 99.86% |
| Calculation | Sector compliance ₹ Mn |
|---|---|
| Non-permissible operating revenue | 1,42,427.24 |
| Interest income | 10,304.99 |
| Total non-permissible income | 1,52,732.23 |
| Total income base | 1,79,179.75 |
| Ratio | 85.24% |
The sector base is operating revenue plus interest income.
This stock is not investable. 100% of all gains need to be purified.
Shariah Financial Ratio Screen
Both ratios must stay below 30%. NSE listed on 24 September 2026, so it has no 36-month trading history; the screen measures both ratios against its market capitalisation since listing. Debt and cash are taken from the balance sheet as at 30 September 2026.
| Particulars | Amount ₹ Mn | Status |
|---|---|---|
| Market capitalisation since listing | 43,56,323.66 | — |
| Interest-bearing debt | 49,273.50 | — |
| Debt ratio | 1.13% | Pass |
| Cash, deposits and interest-bearing securities | 5,69,683.30 | — |
| Cash ratio | 13.08% | Pass |
Debt ratio = interest-bearing debt ÷ market capitalisation since listing. Cash ratio = (cash, deposits and interest-bearing securities) ÷ market capitalisation since listing.
How Islamicly Screens a Stock
Islamicly applies three-level screening to every listed equity, aligned with AAOIFI Shariah Standard No. 21, with a fourth step governing the income that remains. A company must clear all three screens to earn a compliant rating.
| Screen | What it requires |
|---|---|
| 1. Business sector | Companies deriving 5% or more of revenue from alcohol, conventional finance, gambling, tobacco, pork, adult content or deferred gold/silver trading are excluded, as defined by AAOIFI and enhanced by the Islamicly Shariah Board. |
| 2. Debt ratio | Interest-bearing debt must stay below 30% of the 36-month average market capitalisation. |
| 3. Cash compliance | (Cash + interest-bearing securities) ÷ market value of equity, on a 36-month average, must be below 30%. |
| 4. Purification | Any residual non-permissible income that was tolerated during the sector compliance check is purified by donating that proportion of dividends to charity. |
For a Shariah-compliant stock, purification applies to dividends, not capital gains. A non-compliant stock is not investable, and 100% of all gains need to be purified.
A company classified compliant today can fail next period if it takes on interest-bearing debt, parks cash in conventional deposits, or changes its revenue mix. Islamicly monitors available information daily, while financial screening is reassessed when updated financial information becomes available. Use the Islamicly app to be alerted the moment a holding changes status.
Frequently Asked Questions About NSE Stock
Is NSE stock halal? No. Islamicly classifies NSE (544937) as Shariah non-compliant on its FY26 results. It fails the business activity screen, and a single failed screen is enough to make a stock non-compliant.
How much of NSE's income is non-permissible? ₹1,42,427.24 Mn of operating revenue and ₹10,304.99 Mn of interest income are non-permissible, 85.24% of the sector base. The limit is 5%, so NSE fails the business activity screen.
What are NSE's debt and cash ratios? Interest-bearing debt is 1.13% and cash plus interest-bearing securities are 13.08% of the market capitalisation since listing, on the balance sheet as at 30 September 2026. Both must stay below 30%; NSE passes both.
How much of my NSE dividend should I purify? 100%. NSE is not Shariah-compliant, so the stock is not investable and 100% of all gains, including dividends, need to be purified. Seek guidance on disposing of the shares.
Can NSE's Shariah status change? Yes. A company can change status if it takes on interest-bearing debt, holds more cash in conventional deposits or changes its revenue mix. Islamicly monitors available information daily and reassesses the ratios when new results are published.
About Islamicly
Islamicly is a Shariah-certified app and web platform for screening Shariah-compliant equities across global markets, advising on $100s of billions in Shariah-compliant equity investments. Shariah screening is carried out against AAOIFI-based standards and reviewed by Islamicly's Shariah Supervisory Board, chaired by Dr. Mohamed Ali Elgari (Saudi Arabia), with Dr. Nazih Hammad (Canada) and Dr. Muhammad Amin Qattan (Kuwait). Every classification published by Islamicly, including this report, is produced under that framework.
Source: NSE audited consolidated financial results and investor presentation for the year ended 31 March 2026, the company's results for the half year ended 30 September 2026 (balance sheet used for the debt and cash ratios), and the company website.
Disclaimer: This screening is provided for informational purposes and does not constitute investment advice. Shariah compliance status can change as a company's financials evolve; verify the latest screening before investing. Report date: 10/11/2026.
Check the current Shariah status of NSE or any other stock on the Islamicly app or web platform — screen individual stocks, screen an existing portfolio, calculate purification amounts, and get alerted when a holding changes status.
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