Demat accounts jump to 17.5 crore in September 2024: Report.

Equity market investment interest continues to grow in India as the demat account numbers, a primary account necessary for investments into equity markets, increased to 17.5 crore in September, while adding 44 lakh accounts, as per data from brokerage firm Motilal Oswal.

Central Depository Services Limited (CDSL), acting repository of shares, has captured market share while National Securities Depository Limited (NSDL) witnessed yearly decline of 410 basis points in total market share and 90 basis points in incremental accounts.

Active clients and discount broker trends at NSE

The active clients on the National Stock Exchange ( NSE ) increased by 2.4 per cent month-on-month (MoM) to 4.79 crore in September 2024. Discount brokers have a lead with a share of 64.5 per cent of the total active clients of NSE. This is higher than the 61.9 per cent reported in September 2023.

Client base of Zerodha, among the key discount brokers, increased by 1.1 per cent month on month to 80 lakh; however, its market share slid by 20 basis points to 16.6 per cent. Groww clients grew 3.1 per cent MoM to 1.23 crore while its market share expanded by 15 basis points to 25.6 per cent. Angel One increased its client base by 3.1 per cent MoM to 74 lakh and added 10 basis points to market share at 15.4 per cent and Upstox clients went up 1.5 per cent MoM to 2.8 million but lost 5 basis points in market share to 5.9 per cent.

Traditional broking continued to report softer numbers, with ICICI Securities at 19 lakh customers with a 10 basis point decline in market share to 4.2 per cent and IIFL Securities reporting a stable figure of 0.5 million clients with similar market share of 1 per cent.

Trading Volumes: F&O Soars, Cash Declines

Average daily turnover in September 2024 at Rs 538.6 lakh crore increased by 7.1 per cent month-on-month as the increase in the trading volumes of futures and options stood at 7.2 per cent MoM, while cash declined by 3.8 per cent MoM. BSE ADTO increased by 16 per cent MoM primarily on account of F&O activity, whereas NSE ADTO was up by 4.3 per cent MoM.

BSE's share of cash turnover declined to 6.6 per cent in September 2024 from 7.4 per cent in August 2024. However, that market share surged to 26.8 per cent in options notional turnover and options premium turnover at 13.3 per cent from 2.3 per cent a year ago and 10.4 per cent in August 2024.