240% jump in unique investors on NSE in 6 years from FY2019 to FY2024: Eco Survey
Indian stock market in just five years. According to data quoted in the Economic Survey 2023-24, the number of unique tax IDs registered on the National Stock Exchange (NSE) rose from 2.7 crore in FY19 to 9.2 crore in FY24. Going by the trend, a significant portion of the new investors are expected to be retail investors. What's even more surprising is that a majority of these new retail investors are likely to be young and have a higher appetite for risk.
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According to the survey, which was released on July 22, 2024, such enhanced participation of retail investors lends stability to the capital markets. «It has also enabled retail investors to earn higher returns on their savings. Most of the newretail investors are likely young and may have a higher risk appetite,» stated the Economic Survey.
'Young retail investors' chasing money making opportunities in derivatives trading
According to the survey, derivatives trading holds the potential for outsized gains. Thus, it caters to humans' gambling instincts and can augment income if profitable. These considerations are likely driving active retail participation in derivatives trading.
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«It is also reflected in the interest that retail investors have shown in derivatives trading, especially expiration-day trading. While derivatives are hedging instruments, they are mostly used as
