Demat accounts rise 34% to 10.8 crore in December

The number of demat accounts rose to 10.8 crore in December 2022, a surge of 34 per cent on yearly basis, on attractive returns from the equity markets, ease of account opening process and increased financial savings.

Also, the incremental account additions of such accounts were higher in December in comparison with the preceding three months, however, below the financial year 2021-22 (FY22) average run-rate of 29 lakh.

The incremental additions of such accounts were 21 lakh in December 2022, compared to 18 lakh each in October and November and 20 lakh in September, according to an analysis by Motilal Oswal Financial Services.

This decline is mainly due to volatility seen in 2023 on account of Russia-Ukraine war, high-interest rate environment and rising inflation and hawkish US Federal Reserve policies, Nistasha Shankar- Head PRS Equity Research, Yes Securities, said.