Record Surge: India’s Demat Accounts Cross 17 Crore Amid Market Volatility

India's demat accounts have surpassed 17 crore, reflecting increased retail investor interest despite market volatility. In August 2024, 42.3 lakh new accounts were added, though slightly fewer than in July. Active investors on the NSE also rose, with Maharashtra showing the highest participation among the top states.

India's demat accounts have exceeded the 17 crore mark, according to data from the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). As of August 31, 2024, the total number of demat accounts is now 17.10 crore.

During August, the stock market faced high volatility. Nevertheless, around 42.3 lakh new demat accounts were registered, bringing the total to 17.10 crore by month's end. This figure was slightly lower than the 44.44 lakh accounts added in July but significantly higher than the 31 lakh accounts opened in August 2023.

Despite a minor dip compared to the previous month, the ongoing increase in demat accounts highlights continued retail investor interest, even amid market fluctuations. However, active participants remain relatively low compared to total registered users, though their numbers have been growing steadily since March.

The National Stock Exchange (NSE) recently reported that out of 9.7 crore registered investors, only 1.5 crore are active. Yet, the number of active investors surged by 13.9 percent month-on-month to reach 1.5 crore in June. This marked the third consecutive month of growth for active market users. The NSE report also indicated a 13.1 percent growth in individuals trading at least once a month in June compared to May, showing a strong trend in market participation.

The report highlighted that individual investors who traded at least once in June increased across all regions, up by 13.9 percent month-on-month to 1.5 crore in June 2024. Active domestic investors have steadily risen since a decline in March, with Maharashtra leading the way among the top ten states. The top ten states—Maharashtra, Gujarat, Uttar Pradesh, West Bengal, Rajasthan, Karnataka, Delhi, Tamil Nadu, Madhya Pradesh, and Haryana—accounted for 1.2 crore active investors in June 2024. According to the NSE report, Maharashtra significantly boosted the new and active investor base in the stock markets.

(With inputs from agencies.)