Total demat accounts hit new high, jump to over 15 crore in March

livemint.com:

demat accounts in India crossed the 15 crore mark for the first time ever in March on the back of sustained bullish momentum in the Indian market. According to domestic brokerage house Motilal Oswal Financial Services, the total number of demat accounts jumped to 15.1 crores in March 2024, with new account additions surging to 31 lakhs in the previous month. The Indian benchmark Nifty rose 1.5 percent in March on the back of strong macro cues, hopes of a rate cut, continuous foreign investor inflows as well as overall positive global market trends.

Moreover, the expectation of the current Narendra Modi government retaining a third term in the upcoming 2024 general elections also aided investor sentiment. The brokerage also reported that in March, Central Depository Services Limited (CDSL) continued its upward trajectory, gaining market share both in terms of total demat accounts and on a month-on-month (MoM) basis. Conversely, National Securities Depository Limited (NSDL) experienced a decline of 390bp/570bp in total/incremental demat account market share year-on-year (YoY).

Meanwhile, the National Stock Exchange (NSE) saw a consistent rise in active clients for the ninth consecutive month, with the number increasing by 1.8 percent MoM to 4.08 crore in March this year. The top five discount brokers presently hold 63.8 percent of the total NSE active clients, up from 59.9 percent in March 2023. Experts attribute this surge in account openings to heightened investor interest in financial markets, driven in part by successful IPOs that have attracted new participants to the market.