Putting the skids on: When market volatility punctures demat growth's tyres

STUCK IN NEUTRAL: New demat accounts sputter, slipping to a 14-month low of 2.84 million

A surge in market volatility has dampened retail investor sentiment, evidenced in the slowdown of new dematerialised (demat) account openings at brokerages in January.

 

Data from the country’s two depositories, Central Depository Services and National Securities Depository, show that 2.84 million new demat accounts were opened last month — the lowest since November 2023. This is a sharp drop from the monthly average of 3.84 million new accounts during 2024.

 

Demat accounts are essential for holding securities such as shares, mutual funds, and exchange-traded funds in electronic form. In January, the total number of active demat accounts reached 188.1 million.