look news india
Mumbai: The number of demat accounts has increased by 42 lakh to 17.11 crore in the month ending August. According to the data received, an average of 40 lakh demat accounts have been added per month in the current year.
The demand for demat accounts is increasing due to the boom in the primary equity market as well as the secondary equity market. So far in the current calendar year, companies from various sectors have raised Rs 65,000 crore through 56 IPOs. Important public auctions are also going to take place in the coming days.
Retail investors are turning to the primary market due to higher listing gains.
Most members of the same family are opening separate demat accounts in their names to increase the chances of allotment of shares in a public offering. CDSL and NSDL data show that 3.20 crore demat accounts were opened in the first eight months of the current year.
An analyst said that the Indian market has witnessed stability as compared to other stock markets of the world, which has increased the confidence of retail investors in the country's markets.
A study by the Securities and Exchange Board of India (SEBI) found that households are shifting their savings to equities as equity investments offer higher returns than traditional investment instruments.
Investment by domestic households in equity stood at Rs 128 trillion in FY24, up from Rs 84 trillion in FY23.
Apart from the easy online mode, growing awareness towards equities has also contributed to the increase in the number of demat accounts, the analyst said.
