Curated By: Business Desk
Last Updated: September 26, 2023, 12:38 IST
Under NSDL, 3.3 crore accounts are registered and under CDSL, the number is 9.3 crore.
An analysis was carried out by Motilal Oswal Financial Services according to which, this surge was incredibly higher than the average of 21 lakh additions monthly.
People are getting a lot more interested in the stock market these days. According to the latest reports, the demat accounts have increased by 26 per cent on the year-on-year (YoY) basis in August this year.
Following the growth, the demat accounts now amount to 12.7 crore accounts opening. An analysis was carried out by Motilal Oswal Financial Services according to which, this surge was incredibly higher than the average of 21 lakh additions monthly. In July this year, the additions were 30 lakh and by August it saw an increase of 4.1 per cent, meaning 31 lakh additions in the month.
As per the data, these 12.7 crore demat accounts were made with the depositories, NSDL (National Securities Depository Limited) and CDSL (Central Depository Securities Limited), this year. Last year, the accounts had an addition of 10.1 crore, if we are to compare.
According to the SEBI (Securities and Exchange Board of India) data, of the 12.7 crore accounts, 3.3 crore accounts were registered under NSDL and 9.3 crore accounts were registered with CDSL by August end.
The reasons behind such an increase in the demat accounts are being cited as good returns from the equity market, and how easy the account opening process can be, as offered by the brokers to the clients, according to the experts. The increased financial literacy and the popularity of trading among the youth can also be cited as another reason, the experts added.
As per new reports, individual demat account holders and mutual fund investors have been given a deadline of September 30 to either nominate a beneficiary or withdraw the account by submitting a form of declaration. If they fail to do so by the given time, their demat accounts will be frozen because of which they will be unable to redeem their investments.
The SEBI added that this rule is applicable to both new and old investors. The aim behind this move is to secure the assets of the investors and pass them to the legal heirs.
