Record Demat Account in India: Why there is such a surge in the stock market, Demat accounts have opened the secret

Record Demat Account in India: Due to the increasing trend of people towards the stock market, the number of Demat accounts in the country is increasing rapidly.

Due to the increasing trend of people towards the stock market, the number of Demat accounts in the country is increasing rapidly. In August, more than 40 lakh new Demat accounts were opened, taking the total number of Demat accounts to over 17 crore. As of August 31, the total number of Demat accounts with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) was 17.1 crore.

Nearly 40 lakh new Demat accounts every month

Since the beginning of 2024, nearly 40 lakh new Demat accounts have been opened every month. In the first eight months of the current year, around 3.2 crore Demat accounts have been opened. The reason for the large number of Demat accounts being opened is the new IPOs coming in this calendar year. More than 50 companies have raised Rs 53,419 crore through IPOs from the start of 2024 to August 31.

SEBI's study revealed this

A study by the Securities and Exchange Board of India (SEBI) found that a large number of investors are opening Demat accounts only to participate in IPOs. The study stated that nearly half of the Demat accounts used for IPO applications were opened after April 2021.

Investors are getting excellent returns

The stock market has given excellent returns to investors in 2024. Since the beginning of the year, Nifty has given a return of around 15% and 27% over the past year. On the other hand, Sensex has given a return of 13% since the beginning of the year and 24% over the past year. The reason for the boom in the Indian stock market is the strong economy. India's GDP growth rate was 8.2% in the financial year 2023-24, which is expected to be 7.2% in the financial year 2024-25.