India's demat accounts have surpassed the 17 crore mark for the first time in August, according to the latest numbers from the depositories. This is as per a report by Moneycontrol.
This would take India to the ninth rank in comparison with the world's most populous countries. India's demand accounts exceed the populations of countries like Russia, Ethiopia, Mexico, and Japan. This figure is reportedly close to that of Bangladesh's population.
Demat accounts or dematerialised accounts are necessary for holding shares and securities in electronic form.
As per reports, a total of 42.3 lakh new demat accounts were opened in August–a month marked by an increase in stock market volatility- pushing the total to 17.11 crore.
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It also marked the sixth instance of monthly demat additions exceeding the 40 lakh figure. Previously the milestone was reportedly achieved in December 2023, followed by January-February and June-July this year.
The record was achieved just two months after the count had hit 16 crore. 6 crore new demat accounts have been added since January 2023, which reflects the growing appetite for equity investing among Indian households.
Data from the depositories reportedly show that the addition was marginally lower than July's 44.44 lakh demat accounts, but was significantly higher than the addition of 31 lakh in August 2023.
So far in 2024, nearly 3.18 crore fresh demat accounts have opened, surpassing the total additions of 3.10 crore in 2023.
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As per Moneycontrol, analysts say many investors and traders tend to open demat accounts as markets rise, and participation increases. Other factors driving the growth reportedly include the ease of completing KYC online, the possibility of switching brokers digitally, increased awareness, and investors running multiple accounts.
As per reports, the strong returns from domestic markets since last year also led to a steady influx of new investors. However, many analysts are talking about rising valuations.
Since January 2023 till date, India's benchmark Sensex and Nifty have reportedly surged 35 per cent and 39 per cent respectively, while border BSE Mid Smallcap indices have risen 94 per cent each.
