Nsdl Client-Accounts Surpass 50,000-Mark

Client accounts at the National Securities Depository (NSDL) crossed the 50,000 mark yesterday. This indicates an increasing awareness in the depository system.

What comes as a surprise is the fact that client accounts have been opened from far-flung areas like Guwahati, Jorhat, Silchar and Tinsuka in Assam, Gangtok and Jammu and Srinagar.

According to T Koshy, vice president NSDL, "The significant point is the liquidity in demat segment has moved up considerably. Absence of liquidity was one of the major concerns for the market players."

In fact, during the past nine settlements, delivery figures in the eight securities, where trading and settlement was made mandatory, has been over 70 per cent.

Also, in the previous National Stock Exchange settlement, over 350 brokers have participated in demat pay-in.

Koshy further indicated that close to 600-1000 accounts are being opened every day.

"High accounts in Kerala and Tamil Nadu are mainly on account of high literacy. It has nothing to do with the profile of investors and their tendency to speculate in the market," commented Koshy.

Spearheading the depository move in Kerala is a leading National Stock Exchange brokerage, Geojit Securities, which also has the largest number of NSE Vsats in the country. Significantly, of the 3694 accounts in Kerala, 3150 have been opened through Geojit Securities.

C J George, managing director, Geojit Securities, attributed the success of his firm to strength of retail brokerage.

Client accounts have also been opened by non-resident Indian as well from 35 cities from countries such as the US, UAE, Switzerland, Canada, China, UK and Singapore.

A look at the break up of the figures made available by NSDL indicates that retail participation has also risen during the past couple of months.

Total retail account has shot up to 47,586. This is followed by corporate account, which has touched 2,499 as on August 3.

The total client account, which stood at less than 10,000 in January 1998, has now shot up to 50,000.

Kerala, with 3694 accounts from 154 cities and towns, has been at the forefront as regards client accounts.

"We directly deal with the retail investors and avoid sub-brokers, which I believe is the main reason for high spread of accounts in this part of the country.

On an average, nearly 25 accounts are opened through us. We also have some banks on our client list," commented George. Geojit Securities services its clients through its 18 offices in Kerala.