With 3 mn new entries, demat a/cs see biggest spike in July since Dec

Domestic markets saw the addition of nearly 3 million new dematerialised (demat) accounts in July, marking the highest monthly increase since December 2024. This is also the third consecutive month that witnessed a rise in account openings, following a period of moderation from January to April.

 

With seamless onboarding and the continued allure of equities fuelling demand, July’s additions pushed the nationwide demat count beyond 200 million, a figure that has more than tripled in just four years.

 

The total count stood at 202.1 million at the end of last month.

 

However, this figure does not equate to unique investors, since individuals may open multiple demat accounts. The count of unique investors is estimated at 120 million. 

 

The robust growth in demat accounts in July occurred against a backdrop of heightened market volatility, driven by trade tensions between India and the US, lacklustre corporate earnings, and sustained selling by foreign portfolio investors (FPIs).

 

In July, FPIs registered a net outflow of Rs 17,741 crore, the first such net selling since March 2025.

 

Prakarsh Gagdani, CEO, Torus Financial Markets, said the demat additions in July were supported by robust IPO issuances. July was the busiest month for IPOs in 2025, with 13 issues raising Rs 16,125 crore.

 

SIP inflows also reached a record high, rising over 4 per cent month-on-month to Rs 28,464 crore in July. Despite uncertain market conditions, the steady inflow into SIPs underscores growing investor commitment to systematic investing.

 

The outlook for demat account growth remains uncertain, as the markets continue to grapple with the broader impact of trade tariffs and international market dynamics, said experts.