Highest-ever 192.4 mn demat accounts opened in FY25, brokerages add 41.1 mn

Domestic brokerages added a record-breaking 41.1 million demat accounts in the financial year 2024-25 (FY25), bringing the total number of such accounts to 192.4 million, the highest annual increase ever in absolute numbers.

 

The monthly average of 3.42 million new accounts also set a new record for a financial year.

 

However, due to the larger starting base, the growth rate in percentage terms dipped from 32.2 per cent in FY24 to 27.1 per cent in FY25. 

 

Demat accounts, essential for holding stocks and mutual funds electronically, are nearing the 200-million mark. Yet, this figure doesn’t reflect the number of unique investors, as individuals can hold multiple accounts. Estimates suggest the country has around 120 million distinct investors.

 

Since the Covid-19 pandemic, the capital market ecosystem has gained momentum, driven by simplified account-opening processes, mostly bullish market trends, and reduced trading costs.

 

Notably, the number of new demat accounts added each financial year now matches the total number of accounts that existed before the pandemic.

 

A recent Kotak Institutional Equities note highlighted, “Retail access to markets has improved dramatically over the past five years, spanning primary issuances, secondary trading, and indirect investments like mutual funds, PMS, and AIFs.”

 

The note also credited Sebi and market intermediaries—such as exchanges, clearing houses, brokers, and registrars—for enhancing capital market accessibility. 

 

“Their efforts, combined with a focus on investor protection and market stability, have paid off. Sebi’s shift to a more collaborative rulemaking process and business-friendly measures have minimised the risk of sudden regulatory shocks. That said, past market performance and the promise of strong future returns likely play an equally significant role in drawing retail investors,” it added.