New Delhi:
In the last year 2024, there has been a tremendous jump in the number of Demat Accounts in India. According to official data, the number of demat accounts increased by about 46 million in this one-year period, which represents an average increase of 3.8 million accounts per month. According to NSDL and CDSL, there was a 33 percent increase in new demat accounts compared to the previous year in 2023, taking the total number of demat accounts to 185.3 million.
Reason for increase in number of demat accounts
Since the Corona period, the number of demat accounts in India is witnessing a rapid increase. The increase in the number of demat accounts is being attributed to factors like easy account opening process, increasing use of smartphones and favorable market returns. The number of demat accounts has more than quadrupled in the last five years from 39.3 million in 2019.
36 million demat accounts were added amid gains and record IPO (IPO 2024) in the secondary market in the first nine months of 2024.
On an average, 3 crore new demat accounts have been opened every year since 2021. According to SBI Research, “At least 3 crore new demat accounts are being opened every year in India since 2021 and almost one in four is now a woman investor, looking to use capital markets as a channel to financialize savings.” “Reflects the increasing trend of
Tremendous jump in the number of demat accounts in the last 10 years
Apart from this, there has been a tremendous increase in the number of demat accounts in the last 10 years. By August 2024, more than 17.10 crore demat accounts had been opened in the country. Whereas in financial year 2014 this number of demat accounts was 2.3 crore. During this period, the number of demat accounts has registered an increase of more than 650 percent.
What is demat account? (What is Demat Account)
Demat account, also known as “dematerialized account”, is an account in which you can hold your shares, mutual funds, bonds and other investments in electronic form. This account is necessary for trading in the stock market. Demat account eliminates the hassle of handling paper certificates and makes your investments safe and easy. When you buy or sell shares, they come in or out of your account directly. This account helps you display all your investments in one place and is very easy to manage.
Also read- What is Demat Account? Know its benefits, this is the easy way to open a demat account sitting at home