Indian investors opened a record 1.42 crore new demat accounts in FY21, nearly three times the figure in the previous fiscal year, as the global pandemic and business disruptions opened up new investment opportunities.
In contrast, 49 lakh demat accounts were opened in FY20, with a three-year average of 43 lakh in the three fiscal years starting FY18, data from National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) showed.
In March 2021 alone, 19 lakh demat accounts were created, the highest monthly increase ever, indicating investors shifted their savings from traditional instruments such as gold, real estate and bank deposits to alternatives like stocks.
A dematerialised or demat account is opened by an investor with a depository participant to invest in securities such as stocks and bonds.
As markets made a robust rally in FY21 after the crash following the national lockdown in March last year, appetite for stock trading grew. In FY21, the benchmark Sensex gained 68% while BSE500 climbed 77%.
“The Covid-19 outbreak has been a major influx point for the discount brokerage industry on the whole and we witnessed record openings of demat accounts as an increasing number of millennials started moving towards dual or multiple income sources, and stock market seemed to be a great investment option,” said Prakarsh Gagdani, CEO of 5paisa.com.
{{/usCountry}}“The Covid-19 outbreak has been a major influx point for the discount brokerage industry on the whole and we witnessed record openings of demat accounts as an increasing number of millennials started moving towards dual or multiple income sources, and stock market seemed to be a great investment option,” said Prakarsh Gagdani, CEO of 5paisa.com.
{{/usCountry}}