Even as the number of demateri­alised (demat) accounts grew in 2024, the pace of the growth has slackened in the last three months due to volatility in the stock markets. The number of demat accounts in 2024 rose by 46 million, marking an average addition of 3.8 million accounts per month.

Cautious outlook

However, growth of demat accounts dropped to a 4-quarter low during October-December period.

While 9.77 million new accounts were opened during the quarter, this is 26.3 per cent lower compared to the previous quarter, which had seen a record 13.25 million new demat accounts being opened. The slowdown started in October when the total number of accounts added fell to 3.45 million, down from 4.36 million in September 2024.

“The dip in both new demat accounts and derivatives participation among individual investors suggests a cautious outlook among retail participants. As global economic conditions remain uncertain domestic markets face volatility amid the continued selling by foreign investors,” said a market expert.

The dip in growth comes at a time when both benchmark indices, Sensex and Nifty, experienced significant declines. The total turnover in the equity derivatives segment also fell to a 13-month low in December with regulatory curbs kicking in from November.