A tremendous increase has been registered in the demat accounts in December 2023. According to the data released by Central Depository Services and National Securities Depository, a new record has been made in opening new demat accounts across the country in December 2023. The number of demat accounts opened in just one month was more than 41.78 lakh. Before that, 27.81 lakh demat accounts were opened in November. More than 21 lakh demat accounts were opened in India in December 2022.
After more than 41 lakh accounts were opened in December, the total number of demat accounts across the country has crossed 13.93 crore. At the same time, these accounts have increased by 3.1 per cent in a month and by 28.66 per cent annually.
Why Did The Number Of Demat Accounts Increase?
There are many reasons behind the increase in demat accounts in December 2023. The results of the assembly elections of five states were declared in December, and the BJP got the absolute majority in three. These election results have strengthened the hope of the return of the Modi government in the Lok Sabha elections to be held in 2024.
For this reason, investors consider it a better sign for the economy, and its effect is visible in the number of demat accounts and investments.
The tremendous rise in the stock market and the excellent listing of many IPOs have also increased investors’ confidence. By the end of 2023, Sensex and Nifty will have registered a growth of 18.8 per cent and 20 per cent annually, respectively.
At the same time, BSE Midcap and BSE Smallcap have jumped by 45.5 per cent and 47.5 per cent, respectively. The boom seen in the stock market has played a big role in the increase in the number of demat accounts. The Indian economy grew 7.6 per cent in the quarter from July to September, more than RBI’s expectations. RBI had estimated GDP at 6.5 per cent during this period. In such a situation, better GDP figures have strengthened the Indian economy.
Soon, The Number Of Demat Accounts Will Cross 20 Crores
According to the report published in Money Control, due to increasing confidence in the stock market among investors, the number of Demat accounts in the country will cross 20 crore in the next 12 months. This means a sharp increase in new demat accounts may be recorded in the coming times.
