The total number of demat accounts in the country rose by more than four million to 171.1 million in August, data from National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) showed.
Record IPOs led to increase in demat volumes in August.
Last month, 10 companies had raised about Rs 17,000 crore through IPO.
An average of four million demat accounts have been added on a monthly basis since 2024.
Nearly 3.2 crore demat accounts have been opened in the first eight months of the current year.
The reason for the large number of demat account openings is also due to new IPOs in this calendar year.
From the beginning of 2024 to August 31, more than 50 companies have raised Rs 53,419 crore through IPO.
A study conducted by the Securities and Exchange Board of India (SEBI) states that a large number of investors are opening demat accounts only to participate in IPOs.
The study noted that almost half of the demats used for IPO applications from April 2021 to December 2023 were opened after the pandemic.
The stock market has given excellent returns to investors in 2024.
Nifty has risen by about 15 percent since the beginning of this year and by 27 percent in the last one year.
The Sensex has risen 13 percent since the beginning of this year and 24 percent in the last one year.
The reason for the rise in the Indian stock market is the strengthening of the economy.
India's GDP growth rate was 8.2 percent in the financial year 2023-24, which is estimated to be 7.2 percent in the financial year 2024-25.
Record IPOs led to increase in demat volumes in August.
Last month, 10 companies had raised about Rs 17,000 crore through IPO.
An average of four million demat accounts have been added on a monthly basis since 2024.
Nearly 3.2 crore demat accounts have been opened in the first eight months of the current year.
The reason for the large number of demat account openings is also due to new IPOs in this calendar year.
From the beginning of 2024 to August 31, more than 50 companies have raised Rs 53,419 crore through IPO.
A study conducted by the Securities and Exchange Board of India (SEBI) states that a large number of investors are opening demat accounts only to participate in IPOs.
The study noted that almost half of the demats used for IPO applications from April 2021 to December 2023 were opened after the pandemic.
The stock market has given excellent returns to investors in 2024.
Nifty has risen by about 15 percent since the beginning of this year and by 27 percent in the last one year.
The Sensex has risen 13 percent since the beginning of this year and 24 percent in the last one year.
The reason for the rise in the Indian stock market is the strengthening of the economy.
India's GDP growth rate was 8.2 percent in the financial year 2023-24, which is estimated to be 7.2 percent in the financial year 2024-25.
