16L DEMAT ACS ADDED IN FY15 – Demat & More: New Investors Keen to Play on D St

EASE OF CONDUCTING transactions through mobiles and computers helps brokerages add 9 lakh demat acs in the first 6 months of FY16
Small investors are increasingly trying their luck in the stock market. Between April and September -the first six months of the current financial year -brokerages have added nine lakh demat accounts as the ease of executing transactions through mobiles and computers is encouraging firsttime investors to dip their toes into stock-trading.In 2014-15, nearly 16 lakh accounts were added compared to 8.07 lakh accounts in 2013-14.

“The pace in demat account growth is picking up and 85% of accounts opened in the past six months are from new investors,“ said GV Nageswara Rao, MD & CEO, NSDL, a depository participant. “Growth in online trading has spurred a rise in demat ac counts.“

As on Sep tember 30, 2015, the total number of de mat accounts in the country stood at 2.51 o open demat ac crore. The rush to open demat accounts is nowhere close to the one seen in 2008, when registrations rose 38%.

“A completely new set of investors are showing interest towards equity investments as interest rates on fixed deposits are falling,“ said Dinesh Thakkar, chairman and managing director, Angel Broking. “Demat account growth at our brokerage this year has been at 10% on a base of 10 lakh customers. A large number of retail client enquiries are from below the 35-age group.“

Rao said NSDL had started a project called Market Eaklavya to catch hold of young investors.“We are approaching several colleges and educating students regarding equity investments. Recently, several of them have opened demat accounts with investments as low as `. 2,500.“

Stock brokers say that some part of the growth in demat accounts could also be attributed to retail investors converting their mutual fund holdings to demat.

“While definitely a new set of investors are looking at equity, activity from those wanting to convert their mutual fund holdings to demat too has increased,“ said Deven Choksey, MD, KR Choksey Shares and Securities.

A highly active primary market is usually seen as a key catalyst for demat account growth in the country. Though the primary markets are yet to revive, demat account opening has recently gone up as small investors anticipated more stability in stock markets, said experts.

Source: The Economic Times

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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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