Market dips, F&O curbs slow new demat account additions in Dec
demat account additions in December grew at the slowest pace in 10 months as the recent declines in the stock market and regulatory restrictions on equity derivatives discouraged investors and traders from opening new accounts.
The total number of demat accounts rose by 1.65% to 185 million in December from 182 million in November — the slowest growth in percentage terms since February 2024.
«Since the beginning of October, markets have been in a correcting phase, marking a reversal in trend,» said Jimeet Modi, CEO of Samco Securities. «Given these corrections, the fall in the new addition of demat accounts is expected as investor sentiment has turned negative.»
Since October 1, the Nifty fell about 8.2% while the Sensex declined 7.3%, led by foreign investor selloff and disappointment in second-quarter earnings.
The demat account additions, especially for share trading and mutual fund transactions, are correlated to the market performance, said Somnath Mukherjee, vice president-corporate development at Zerodha.
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