About 1.77 million new dematerialised accounts were added in October — 28 percent below the previous nine-month average of 2.5 million, a report by Business Standard stated. The drop in pace comes even as the markets jumped 5.4 percent last month amid positive foreign portfolio investor (FPI) flows, noted the report.
As per the report, not just the Demat account tally fell in October, but trading activity too softened. The average daily trading volume (ADTV) for the cash segment fell to 54,532 crore (NSE and BSE combined), a fall of nearly 20 percent month-on-month (MoM), informed BS. The ADTV for the futures and options (F&O) segment (both NSE and BSE combined) stood at ~147.4 trillion (notional turnover), declining 4 percent MoM, it added.
Broking industry officials told BS that the fall in Demat account additions in October was on account of holidays due to the festive season and also due to a lack of initial public offerings (IPOs).
The total number of Demat accounts at the country’s two depositories— CDSL and NSDL — stood at 104.4 million as on October 31, 2022.
Meanwhile, growth in the addition of Demat accounts during the September quarter of the 2022-23 financial year was also the slowest since Q1FY21.
During Q2, 6.1 million new accounts got added, taking the total to 102.6 million. At 6.3 percent quarter-on-quarter (QoQ), the growth rate was the lowest since the lockdown-hit Q1FY21, which had logged 5.7 percent QoQ growth. In absolute terms, the growth rate was the lowest since Q4FY21, when 5.3 million new accounts had been added.