Indian Economy Growing at Fast Pace, Demat Accounts Surpasses 100 Million
Nehal Vora, MD & CEO, CDSL, stated that “the milestone of 100 million demat accounts is a tribute to the popularity of demat accounts and the securities market as an outlet for investment against the backdrop of rise in household savings”.
In August, the number of demat accounts in the nation surpassed 100 million for the first time in India. Finance Minister Nirmala Sitharaman made the announcement on micro-blogging site and stated, “A large part of growth over the past two years has come from tier-2 and tier-3 cities.”
According to data supplied by depository companies, National Securities Depository Limited (NDSL) and Central Depository Services, over 2.2 million new accounts were established last month, the majority in the previous four months, bringing the total to 100.5 million (CDSL).Just before Covid-19 broke out in the nation in March 2020, India had 40.9 million demat accounts.
This Expansion Has Been Supported By A Number of Reasons:
1)The sudden increase in the market.
2)longer workweeks because of the lockdown and mobility limitations.
3)The transition to a work-from-home environment.
4)The convenience of opening an account.
5)The rise in mobile and broadband penetration, and a decrease in brokerage fees.
Nehal Vora, MD & CEO, CDSL, stated that “the milestone of 100 million demat accounts is a tribute to the popularity of demat accounts and the securities market as an outlet for investment against the backdrop of rise in household savings”. India Pips UK To Become 5th Largest Economy in the World; Here's What Analysts Say.
FM Nirmala Sitharaman's Tweet:
Prashant Vagal, executive vice-president, NSDL said that “We witnessed a substantial increase in demat accounts in the past two years. It is equally important to note that NSDL’s custody value increased from Rs 174 trillion in April 2020 to Rs 320 trillion ($4 trillion) in August 2022. This indicates participation from both retail and institutional investors,”
Although NDSL has a larger market share in terms of assets under custody, CDSL, a public corporation, has a higher market share in terms of the number of accounts (AUC). With an AUC of Rs 38.5 trillion at the end of August, CDSL managed 71.6 million demat accounts. The AUC of NSDL’s 28.9 million accounts, on the other hand, was Rs 320 trillion.
(The above story first appeared on LatestLY on Sep 06, 2022 07:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).