Due to the increasing inclination of people towards the stock market, the number of demat accounts in the country is increasing rapidly. More than 40 lakh new demat accounts have been opened in the country in August, due to which the total number of demat accounts has crossed the figure of 17 crores.
The total number of demat accounts in National Securities Depository Limited (ASDL) and Central Depository Services Limited (CDSL) was 17.1 crores as on August 31.
Around 40 lakh new demat accounts are being opened every month since the beginning of 2024. About 3.2 crore demat accounts have been opened in the first eight months of the current year.
The reason for the opening of a large number of demat accounts is also the arrival of new IPOs in this calendar year. More than 50 companies have raised Rs 53,419 crore through IPOs from the beginning of 2024 to August 31.
A study conducted by the Securities and Exchange Board of India (SEBI) said that a large number of investors are opening demat accounts only to participate in IPOs.
The study said that about half of the demat accounts used for IPO applications from April 2021 to December 2023 were opened after the pandemic.
