India Records 30 Million New Demat Accounts Each Year, With Women Investors Representing 25%
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New Delhi, Dec 23 (NationPress) India is witnessing the establishment of at least 30 million new demat accounts each year starting from 2021, with approximately 1 in 4 now being held by female investors. This trend suggests a rising adoption of the capital market as a means for financializing savings, as noted by SBI Research on Monday.
The report from the Economic Research Department of the State Bank of India revealed that as a result, the total number of demat accounts in India has surpassed 150 million (with 92 million being unique investors on NSE) in FY24, a significant increase from just 22 million in FY14.
“This year, the number of newly created demat accounts may exceed the 40 million threshold,” stated Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI. He also mentioned that aside from a few states, the participation of women has increased beyond the national average in FY25 compared to FY22.
States such as Delhi (29.8%), Maharashtra (27.7%), and Tamil Nadu (27.5%) show higher female investor representation compared to the pan-India average of 23.9% in FY25. Conversely, states like Bihar (15.4%), Uttar Pradesh (18.2%), and Odisha (19.4%) have a female share below 20% in their registered investor bases, according to the findings.
The trend indicates a declining mean/median age of investors, with an increasing proportion of individuals under the age of 30 entering the market in recent years. This shift is largely driven by advancements in technology, reduced trading costs, and better access to information.
The report highlights that a 1% increase in market capitalization results in a 0.06% rise in the GDP growth rate.
The growing preference for mutual funds in financial savings has made them the top choice for financializing savings. The new Systematic Investment Plans (SIPs) saw a fourfold increase since FY18, reaching 4.8 crore, contributing approximately Rs 2 lakh crore in total.
Over the past decade, the funds raised by Indian companies through capital markets have surged more than tenfold, from Rs 12,068 crore in FY14 to Rs 1.21 lakh crore in FY25 (up to October).
“The household savings in ‘Shares and debentures’ has risen to 1% of GDP in FY24, compared to 0.2% in FY14, while their share in household financial savings has increased from 1% to 5%,” the report noted.
In FY25 (up to October), a total of Rs 1.21 lakh crore was raised from equity markets through 302 issues.
“The NSE market capitalization has grown more than sixfold, reaching Rs 441 lakh crore in FY25 (so far) compared to FY14,” the SBI Research report stated.
“As a result, the average trade size in the equity cash segment has increased from Rs 19,460 in FY14 to Rs 30,742 in FY25 (so far),” according to the SBI Research findings.
