India’s Demat Accounts Reach 17.10 Crore Amid Market Volatility
As of August 31, 2024, the total number of demat accounts in India has crossed the 17 crore mark, reaching 17.10 crore. This data comes from the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
In August, despite heightened market volatility, 42.3 lakh new demat accounts were registered. Although this was slightly lower than the 44.44 lakh accounts added in July, it was a significant increase compared to the 31 lakh accounts opened in August 2023.
The sustained growth in demat accounts highlights the continued interest of retail investors in the stock market, even during uncertain times. However, the number of active participants remains relatively low compared to the total registered users, though it has been rising steadily since March.
A recent report from the National Stock Exchange (NSE) indicates that out of 9.7 crore registered investors, only 1.5 crore are active. The report also notes that active investors on the NSE surged by 13.9% month-on-month, reaching 1.5 crore in June. This marked the third consecutive month of growth in active market users.
The NSE report further suggests that the number of individuals trading at least once a month grew by 13.1% in June compared to May, reflecting a strong trend in market participation. The number of active domestic market investors from the top 10 states—Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Rajasthan, Karnataka, Delhi, Tamil Nadu, Madhya Pradesh, and Haryana—stood at 1.2 crore in June, with Maharashtra leading the increase.
“Following a decline in March 2024, the count of individuals who traded at least once has been on a steady rise, increasing by 13.1% month-on-month to 1.2 crore for the top 10 states in June 2024,” the NSE report stated.
Doubts Revealed
Demat Accounts -: A Demat account is like a bank account but for holding shares and securities in electronic form. It makes trading in the stock market easier and safer.
Crore -: A crore is a unit in the Indian numbering system equal to ten million (10,000,000). So, 17.10 crore means 171 million.
Market Volatility -: Market volatility means that the prices of stocks and shares go up and down a lot. It can make investing risky but also offers opportunities for profit.
National Stock Exchange (NSE) -: The National Stock Exchange (NSE) is one of the largest stock exchanges in India where people buy and sell shares of companies.
Registered Investors -: Registered investors are people who have signed up to trade in the stock market. They have accounts that allow them to buy and sell shares.
Active Investors -: Active investors are those who regularly buy and sell shares in the stock market, at least once a month.
Maharashtra -: Maharashtra is a state in western India. It is one of the most economically developed states and includes Mumbai, the financial capital of India.