Demat account opening: In December 2021, the number of Demat accounts was 8.1 crore.

New Delhi:

Demat account open: The number of demat accounts used by investors for trading in the stock market increased to 108 million in December 2022, showing a 34 percent year-on-year growth.

According to a report, there has been such a sharp increase in the number of Demat account opening due to attractive returns from the stock market, ease of account opening process and increase in financial savings.

The incremental growth in such accounts was higher in December than in the preceding three months.

However, this is less than the average account number of 29 lakhs for the financial year 2021-22.

Let us tell you that according to the rules of market regulator SEBI, it is mandatory for investors to have a demat account for buying or selling stocks from the stock market.

An analysis report by Motilal Oswal Financial Services states that the incremental growth in such accounts was 21 lakh in December, 2022 as compared to 18 lakh each in October and November and 20 lakh in September.

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Nistasha Shankar, head of PRS equity research at Yes Securities, believes that there were several reasons behind the slow growth rate of accounts added every month.

Which mainly includes instability caused by the policies of the US Federal Reserve along with the Russia-Ukraine war, high interest rate environment and rising inflation.

Roop Bhutera, CEO (Investment Services), Anand Rathi Shares and Stock Brokers, said that the decrease in the number of Initial Public Offerings (IPOs) in the year 2022 as compared to a year ago has also contributed to the decrease in the number of initial public offerings (IPOs). Has affected the growth rate of demat accounts in a few months.

According to the data, the number of demat accounts in December 2022 has increased by 34 percent to 10.8 crore as compared to 8.1 crore in December 2021.

Demat accounts grew in the last year due to attractive returns from equity markets and ease of account opening process by brokers for customers.

However, amidst the increasing number of demat accounts, the number of active clients on NSE has been continuously decreasing for the last six months.

Active user customers in the industry grew 12 percent year-on-year, but fell one percent month-on-month to 35 million in December 2022.

Nitin Agarwal, Head of Banking, Insurance and Financial Research, Motilal Oswal Institutional Equities, said, "Due to increased volatility in the markets, customers coming to the market in the second half of FY 2021-22 are reducing their buying and selling activities."

At present, the share of the country's top five broking firms in NSE Active Clients has increased to 59.3 per cent as compared to 56.2 per cent in December 2021.

These firms include Zerodha, Angel One, Groww, ICICI Securities and IIFL Securities.

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