Indian equity benchmarks have continued to outperform their global peers, leading to a record 185 million demat accounts in 2024. This marks a significant increase of approximately 46 million accounts over the past year, averaging 3.8 million new accounts per month, according to data from NSDL and CDSL.
The number of demat accounts saw a 33% rise in 2024 compared to 2023, bringing the total to 185.3 million. This rapid growth, which began during the Covid-19 period, is attributed to the ease of account opening, widespread use of smartphones, and favorable market returns. Over the past five years, the number of demat accounts has quadrupled from 39.3 million in 2019.
A recent report by SBI Research highlights that since 2021, India has been witnessing at least 30 million new demat accounts being opened annually, with nearly one in four being by women investors. This trend underscores the increasing role of capital markets in the financialisation of savings.
Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, predicts that the number of new demat accounts could surpass 40 million this year. Additionally, female participation in the market has increased above the national average in FY25 compared to FY22, except in a few states.
In the last decade, Indian companies have mobilized over ten times more funds from capital markets, soaring from Rs 12,068 crore in FY14 to Rs 1.67 lakh crore in 2024. The market capitalization of NSE has also increased more than sixfold, reaching Rs 441 lakh crore in FY25 compared to FY14.
This unprecedented growth in demat accounts reflects the strong confidence in India’s equity markets and the ongoing financial empowerment of its population.
