Fresh demat openings declined in April
Premium- The total number of demat account holders more than doubled in the three years to 31 October 2021, to reach 73.8 million
Data released in the Sebi Monthly Bulletin on Tuesday showed that the number of fresh demat accounts fell in April, a continuation of a trend that began in October 2021. Demat account openings had surged in FY21 and FY22 on the back of a huge rally in the stock market. The lockdowns, coupled with easy access to discount brokerage platforms online, pushed many into trading in stocks from their homes. Indian investors opened a record 14.2 million demat accounts in FY21.
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An official press release said the total number of demat account holders more than doubled in the three years to 31 October 2021, to reach 73.8 million. The Nifty surged from around 8,000 levels in March 2020 to 18,300 levels in October 2021. However, that month marked a peak in both the stock market and the number of fresh demat account openings. The Russia-Ukraine war, inflation and a looming trajectory of RBI rate hikes have dulled prospects for the equity market and along with it, reduced the entry of new investors in the market.