The number of demat accounts in October stood at 132.25 million. It all happened despite volatile market conditions. In fact, the addition of demat accounts, showed a sharp spurt and rose to an 11-month high in October. The number of demat accounts rose by 30.56 million a year ago
The number of demat accounts in October stood at 132.25 million, which includes 98.54 million accounts on Central Depository Services (CDSL) and 33.80 million in National Securities Depository (NSDL). This translates to a y-o-y growth of 27.98 million. There may be an increase on a y-o-y basis, because even now the equity penetration is very less. However, the number of accounts being added mostly depends on how the markets will perform in that particular year.
Since March, the markets have been performing well. From March till now, midcaps are getting tremendous returns. Midcaps and smallcaps are the space where most investors participate. From March till date, Sensex has gained 9.34 per cent, while Nifty increased 11.24 per cent.
Another reason is easy accessibility and digital transformation. Digital transformation has been helping the companies to transform and add more clients in a very faster pace. The new digital applications that are onboarding new customers as well as traditional companies that are enhancing client addition in a hassle-free way have aided. Whenever the markets are in an uptrend, like this year it has been since March, the number of demat accounts tend to go up.
