Summary:
India’s domestic brokerages set a new record in FY25 by adding 41.1 million demat accounts, taking the total count to an impressive 192.4 million. This marks the highest annual jump ever in absolute terms. With a monthly average of 3.42 million new accounts, FY25 also hit a fresh high for yearly account openings. Although the overall growth remained strong, the pace dipped slightly from 32.2% in FY23 to 27.1% in FY25 due to the expanding base. Demat accounts, which allow electronic storage of stocks and mutual funds, are now inching closer to the 200 million mark. However, this figure does not reflect unique investors, as individuals can operate multiple accounts. Experts estimate the real number of distinct investors at about 120 million.
The surge in account openings gained momentum after the Covid-19 period and continues to be driven by simplified onboarding, bullish markets and reduced trading charges. Remarkably, the number of new demat accounts added in just a few recent years equals the entire pre-pandemic base. According to Kotak Institutional Equities, retail participation in capital markets has expanded meaningfully across IPOs, secondary market trades, mutual funds, PMS and AIFs. Enhanced accessibility, enabled by SEBI along with exchanges, brokers, registrars and clearing corporations, has made market entry easier than ever. SEBI’s proactive and inclusive policy framework, with a focus on stability and investor safety, has been key to sustaining public trust. That said, it is the consistent market performance and growing optimism about future returns that are fueling this retail investment wave.
Source: IBEF
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