Data released in SEBI’s monthly bulletin on Tuesday showed that the number of new demat accounts declined in April, a continuation of the trend that started in October 2021. demat account In FY 2011 and FY 2012, the opening was increased due to the huge boom in the stock market. The lockdown, along with easy access to online discount brokerage platforms, has prompted many people to trade in stocks from their homes. Indian investors opened a record 14.2 million demat accounts in FY2011.
An official press release said the total number of demat account holders more than doubled in three years to reach 73.8 million as of 31 October 2021. Nifty rose from around 8,000 levels in March 2020 to 18,300 levels in October 2021. However, that month marked a peak in both the stock market and the number of new demat account openings. Russo-Ukraine war, inflation and an imminent trajectory of RBI rate hike have eroded prospects for the equity market as well as reduced entry of new investors into the market.