First quarter: Over 1 crore demat accounts opened

Tribune News Service

Chandigarh, August 26

The Indian stock market is witnessing a phenomenal rise in investor participation with a record number of demat accounts opened. In the first quarter of the current fiscal year, it witnessed addition of 1.09 crore new accounts which is 80 per cent higher than the corresponding period of the previous fiscal.

In the first quarter of 2023-24, 60.6 lakh demat accounts were opened.

This surging interest in equities is likely due to increased financial literacy, FOMO (Fear of Missing Out) factor, digitisation and user-friendly trading platforms.

The number of new demat account openings is directly proportional to a surge in stock markets. According to brokers, typically, a bull market attracts more new investors, and whenever the market hits a rough patch, the number of active traders and investors also tends to decrease.

“...New investors are coming from different parts of the country, including small towns. Opening these accounts will further strengthen the retail volume and participation,” said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt Ltd.

According to data from the Central Depository Service and National Securities Depository, the number of demat accounts opened in June totalled over 42.4 lakh, marking the highest account opening rate since February 2024. While in May and April 36.01 lakh and 30.8 lakh demat accounts were opened respectively.