India's Demat accounts surge to 162 mln in June 2024: Motilal Oswal

Demat account: The number of demat accounts in India reached 162 million in June 2024, according to a report by Motilal Oswal Financial Services. The new account additions surged by 4.2 million in June, with an average monthly increase of 3.4 million so far in FY25. This growth was primarily driven by the performance of Central Depository Services Limited (CDSL), which continued to gain market share.

Demat Accounts on the Rise

In June 2024, CDSL maintained its growth trajectory, raising its overall market share month-on-month. Conversely, the National Securities Depository Limited (NSDL) experienced a decline in market share, losing 420 basis points year-on-year in total demat accounts and 620 basis points in incremental accounts.

Increase in NSE Active Clients

The number of active clients on the National Stock Exchange (NSE) rose by 3.1 per cent month-on-month to 44.2 million in June 2024. The top five discount brokers now account for 64.4 per cent of total NSE active clients, up from 58.2 per cent in June 2022.

Performance of Key Discount Brokers

Zerodha: Reported a 2.1 per cent month-on-month increase in client count to 7.7 million, with a slight decline in market share to 17.3 per cent.
Groww: Saw a 5.4 per cent increase in client count to 10.9 million, with a rise in market share to 24.7 per cent.
Angel One: Recorded a 3.4 per cent increase in client count to 6.7 million, with a minor rise in market share to 15.2 per cent.
Upstox: Experienced a 2.7 per cent increase in client count to 2.7 million, maintaining a market share of 6 per cent.

Performance of Key Traditional Brokers

ICICI Securities: Reported a 0.8 per cent increase in client count to 1.9 million, with a slight drop in market share to 4.3 per cent.
IIFL Securities: Saw a 0.6 per cent increase in client count to 0.4 million, with a small dip in market share to 1 per cent.

MCX Trading Volumes Decline

The total trading volumes on the Multi Commodity Exchange (MCX) declined by 10.7 per cent month-on-month to Rs 36.6 trillion in June 2024, down from Rs 41.0 trillion in May 2024. Despite this, the overall ADTO increased by 2.7 per cent month-on-month to Rs 1.8 trillion. 
The rise in demat accounts and the performance of key brokers reflect growing investor participation in the Indian stock market, while fluctuations in trading volumes and market share dynamics highlight ongoing shifts in market activity.