25 million demat accounts added in FY23

Around 25 million dematerialised (demat) accounts were added in the 2022-23 financial year (FY23), at a monthly average of over 2 million despite lack lustre returns and sustained volatility in the market.

The number of demat accounts opened with two depositories –  the Central Depository Services (CDSL) and the National Securities Depository (NSDL) — jumped  27  per cent in the past 12 months, from 89.7 million to 114.46 million.

At the same time, the benchmark Nifty 50 declined 0.6 per cent in FY23, while the Nifty Midcap 100 rose a meagre 1.2 per cent and the Nifty Small cap 100 fell 13.8 per cent.

Sustained rate hikes by global central banks, the Russia-Ukraine war, stubborn inflation, and the banking crisis in the developed world raised volatility the year gone by.

Even the number of initial public offerings (IPOs), seen as an investor lodestone, declined in FY23. In FY22, around 53 companies raised Rs 1.11 trillion through public offers while in FY23, 37 firms raised Rs 52,115 crore.

Reacting to the numbers, market experts said that volatility is not such a big hindrance for new customers as they believe that it affects investors who are in the market for a while, not the ones new to it. Sentiment will affect new customers more.