Demat accounts rise by 2.5 million in June, near 200 mn milestone

Domestic markets added 2.5 million new dematerialised (demat) accounts in June. The highest monthly addition since January has taken the total accounts tally within kissing distance of 200 million milestones. 

June also marked the second consecutive monthly increase after a steady decline from January to April. This surge brings the total number of demat accounts nationwide to 199.14 million. The demat tally doesn’t represent the unique investor count, which is pegged at 120 million, as an individual is allowed to open multiple demat accounts. 

The latest growth in demat accounts coincides with robust equity market performance, with the benchmark Nifty rising 3 per cent in June, while broader markets saw even stronger gains. The Nifty Midcap 100 climbed 4 per cent and the Nifty Smallcap 100 surged 6.7 per cent. After zero activity in March and just one listing in April, eight companies raised ₹17,689 crore in June. It remains to be seen whether brokerages will be able to maintain the healthy pace of growth in new client additions amid increasing pressure on profitability, which is forcing them to rein in spending on customer acquisition. 

Highlighting the challenges, Prakarsh Gagdani, CEO of Torus Financial Market, said: “Margins are shrinking, and stock market revenues are declining. This will impact resources allocated to new customer acquisitions by brokerages.”