NEW DELHI: The number of demat accounts rose to 12.7 crore in August 2023, a surge of 26 per cent on a yearly basis, primarily due to attractive returns from equity markets, and ease of account opening process.
Also, the incremental additions of such accounts were higher in August in comparison to the preceding month. Further, this was way higher than the average 21 lakh monthly additions in fiscal year FY23, according to an analysis by Motilal Oswal Financial Services.
The new account additions rose 4.1 per cent month-on-month to 31 lakh in August compared to 30 lakh additions in July.
Going by the data, a total of 12.7 crore demat accounts were registered with the two depositories - NSDL and CDSL - at the end of August 2023 as compared to 10.1 crore a year earlier.
The number of demat accounts was 12.3 crore at July-end.
Of the 12.7 crore total, 3.3 crore, and 9.35 crore demat accounts were registered with NSDL and CDSL, respectively at the end of August, data from the Securities and Exchange Board of India (Sebi) showed.
Market experts said additions in dematerialised (demat) accounts are driven by attractive returns from equity markets and the ease of account opening process offered by brokers to their clients.