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Due to equity market gains, simplicity of account opening, and increasing financial savings, demat accounts surged 34% to 10.8 crore in December 2022.
In December, such account additions were greater than in the previous three months, but below the FY22 average run-rate of 29 lakh.
According to Motilal Oswal Financial Services, such accounts added 21 lakh in December 2022, up from 18 lakh in October and November and 20 lakh in September.
Nistasha Shankar, Head PRS Equity Research, Yes Securities, attributed this fall to 2023 volatility caused by the Russia-Ukraine crisis, high interest rates, growing inflation, and hawkish US Federal Reserve policies.
Roop Bhootra, CEO, Investment Services, Anand Rathi Shares & Stock Brokers, said fewer new initial public offers (IPOs) in 2022 compared to 2021 has also led to fewer demat accounts being registered in the recent few months.
Demat accounts increased 34% to 10.8 crores in December 2022 from 8.1 crores in December 2021.
Demat accounts increased last year due to equities market returns and brokers’ easy account setup process.
Yes Securities’ Shankar also cited rising financial savings, financial knowledge, and youth trading.
For six months, NSE active clients have fallen as demat accounts expand at a slower pace. Industry-wide active user customers climbed 12% year-over-year but declined 1% month-over-month to 3.5 crores in December 2022.
As of right now, the top five discount brokers, which are Zerodha, Angel One, Groww, ICICI Securities, and IIFL Securities, are responsible for 59.3 percent of all active clients on the NSE. This percentage is up from 56.2 percent in December 2021.