In August 2023, the number of demat accounts increased significantly by 26% compared to the previous year. This substantial growth can be attributed to the appealing returns offered by the equity markets and the simplified account opening procedure. Additionally, the rate of new demat account registrations in August surpassed the figures from the previous month.
The number of new Demat Account registrations increased by 4.1% from July to August, rising to 31 lakh from the previous 30 lakh additions. According to the data, the combined demat accounts registered with the two depositories, NSDL and CDSL, reached a total of 12.7 crore by the conclusion of August 2023, in contrast to 10.1 crore the previous year.
At the end of July, there were a total of 12.3 crore demat accounts. Among the 12.7 crore demat accounts in total, 3.3 crore were registered with NSDL, and 9.35 crore were registered with CDSL as of August, as indicated by data from the Securities and Exchange Board of India.
The number of active clients on the NSE has seen growth for two consecutive months. In August, the total active user clients across the industry increased by 2.5% compared to the previous month, reaching 3.27 crore.
Among these, the top five discount brokers – Zerodha, Angel One, Groww, ICICI Securities, and IIFL Securities collectively represented 60.8% of the overall NSE active clients last month, which was a slight decrease from the 61.2% recorded in July.
Furthermore, SEBI has informed that every individual demat account holder is required to either nominate a beneficiary or formally decline to do so by submitting a declaration form before September 30. Failure to comply with this requirement will result in the freezing of their demat accounts, preventing them from redeeming their investments. This directive applies to both new investors and those who already have existing accounts.
