New account additions rose 4.1 percent month-on-month to 31 lakh in August, compared to 30 lakh additions in July. (Representative image)
The number of demat accounts stood at 12.3 crore at the end of July.
The number of demat accounts increased to 12.7 crore by August 2023, up 26 percent year-on-year, mainly due to attractive returns in the equity markets and ease of opening accounts.
Also, incremental additions of such accounts were higher in August than in the previous month. Moreover, this was much higher than the average monthly additions of Rs 21 lakh in fiscal FY23, according to an analysis by Motilal Oswal Financial Services.
New account additions rose 4.1 percent month-on-month to 31 lakh in August, compared to 30 lakh additions in July.
Going by the data, a total of 12.7 crore demat accounts were registered with the two depositories – NSDL and CDSL – as of end August 2023 compared to 10.1 crore a year earlier.
The number of demat accounts stood at 12.3 crore at the end of July.
Of the total 12.7 crore, 3.3 crore and 9.35 crore demat accounts were registered with NSDL and CDSL respectively at the end of August, Securities and Exchange Board of India (Sebi) data show.
Market experts said additions to dematerialized (demat) accounts are driven by attractive returns in the stock markets and the ease of account opening that brokers offer to their customers.
Also, increased financial literacy and growing popularity of trading among youth have been some other major factors contributing to the rise, she added.
The number of active NSE customers has increased for two consecutive months. The number of active user customers in the industry as a whole rose 2.5 percent month-on-month to 3.27 crore in August.
The top five discount brokers – Zerodha, Angel One, Groww, ICICI Securities and IIFL Securities – accounted for 60.8 per cent of total active NSE customers last month, up from 61.2 per cent in July.
As per Sebi’s directions, all individual demat account holders have to nominate or de-register a beneficiary by filing a declaration form before September 30. If this is not done, their demat accounts will be frozen and they will not be able to repay their investments.
This mandate applies to both new and existing investors.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
