India's demat accounts crossed 17 crore mark, led by surge in IPOs

New Delhi [India], September 5 : The registered demat accounts in India with holdings have crossed the 17 crore mark, according to data from the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
As of August 31st, 2024, the total number of demat accounts now stands at 17.10 crore.
In August, the stock market experienced heightened volatility, yet around 42.3 lakh new demat accounts were registered. This surge brought the overall total to 17.10 crore by the end of the month.
While this growth was slightly lower than July's addition of 44.44 lakh accounts, it still represented a notable increase compared to the 31 lakh accounts opened in August 2023.
Despite the marginal month-on-month dip, the sustained growth in demat accounts highlights the continued interest of retail investors in the stock market, even during periods of uncertainty and market fluctuations.
However, despite this surge, 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 of the National Stock Exchange (NSE) says that out of the 9.7 crore registered investors, only 1.5 crore are active. However, the report highlights that active investors on the NSE surged by 13.9 per cent month-on-month, reaching 1.5 crore in June. This was the third consecutive month of growth in active market users.
The NSE report also suggests that the number of individuals trading at least once a month grew by 13.1 percent in June compared to May, reflecting a strong trend in market participation.
"The number of individual investors who traded at least once in June increased across regions. This individual investor base rose by 13.9 per cent month-on-month to reach 1.5 crore in June 2024," the report noted.
It also points out that there has been a steady rise in active domestic investors after it showed a decline earlier in the year, particularly in March.
As of June, the number of active domestic market investors on the NSE 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. Maharashtra led the increase in June, significantly contributing to the new and active investor base in the stock markets.
"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 per cent month-on-month to 1.2 crore for the top 10 states in June 2024," the NSE report stated.