How has the Demat account open increased in India in the last few years?

In the last few years, the Indian equity market has witnessed unprecedented interest from retail investors looking to multiply their money and realize higher returns than other financial instruments. A majority of the demand has resulted from the pandemic and the subsequent bull run as the economy recovers.

Recently, to celebrate the 25 years of the launch of the Nifty50 index and 20 years of Derivatives Trading in India, the National Stock Exchange organized a virtual event. SEBI’s chairman, Ajay Tyagi, shed light on India’s highest ever Demat account opening.

As per SEBI’s data, average new Demat accounts have risen to 29 lakh per month till November 2021 from 4 lakhs per month in 2020. The increase is seven times higher compared to 2020. Furthermore, the cumulative Demat accounts in India rose to 7.7 crores as of November 2021 against 3.6 crores in March 2019.

According to NSE MD and CEO Vikram Limaye, new-age digital trading platforms backed by internet technology and mobile-based investing are attracting investors at a never-before rate. Allowing the democratization of the equity market, trading platforms with unique features, and speedy transactions are enabling the equity market culture among new and potential investors. Therefore, close to 54% of the equity turnover is being contributed by retail investors.

The number of Demat accounts is expected to rise at a higher rate in the future as uncertainty looms over the crypto market, which is nearing legal regulations.