Demat account openings slow in August; total count rises to 205 million

The pace of new dematerialised (demat) account additions slowed in August, with the two depositories — National Securities Depository Limited and Central Depository Services (India) Limited — opening 2.6 million accounts during the month. This was below the 12 month average of 3 million.

 

At the end of August, total demat tally stood at 205 million, up 30 million, or 17 per cent, from a year ago. The unique investor base, however, is estimated at around 130 million, as an individual can hold multiple demat accounts with different brokerages.

 

Market participants said account openings have moderated in recent months as equity returns plateau. While secondary market weakness weighed on new additions, robust primary market activity provided support. In August, 12 IPOs collectively raised ₹10,454 crore, taking the year-to-date fundraising via IPOs to ₹71,954 crore. 

 

Meanwhile, equity benchmarks posted back-to-back monthly declines in August. The Sensex slipped 1.7 per cent, while the Nifty fell 1.4 per cent. 

 

Broader indices underperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 down 2.9 per cent and 4.1 per cent, respectively. Over the past year, Nifty has fallen 2 per cent.

 

On the activity front, the combined average daily turnover (ADTV) in the cash segment across the NSE and BSE stood at ₹1.03 trillion in August, a 0.5 per cent month-on-month uptick. This came after a sharper 16 per cent decline in July.