Fall in new demat account additions

Mumbai : As Indian stock markets continue to outperform compared to a global market, the number of total demat accounts increased to 179 million in October, from 175 million in September, a report showed on Monday.

The Motilal Oswal Financial Services report, however, also said the new account additions declined to 3.5 million in October, with average monthly additions of 3.9 million in the current fiscal to date. It is the first time in the last four months when demat addition is below 4 million.

The number of active clients on the National Stock Exchange (NSE) increased 2.4 per cent (month-on-month) to 48.9 million in October. As per the report, CDSL continued to gain market share in terms of the total number of demat accounts as well as incremental demat accounts in October.On a YoY basis, NSDL lost 400bp/210bp market share in total/incremental demat accounts.

Currently, the top five discount brokers account for 64.5 per cent of the total NSE active clients vs 61.4 per cent in October 2023. Online brokerage firm Zerodha reported a 1.2 per cent MoM increase in its client counts to 8.1 million, with a 0.15 per cent fall in the market share to 16.5 per cent. Groww reported a 2.8 per cent MoM increase in its client count to 12.6 million, with a 0.20 rise in the market share to 25.8 per cent. Angel One reported a 2.4 per cent MoM increase in its client count to 7.5 million, with a consistent market share of 15.4 per cent. Upstox reported a 1.4 per cent MoM increase in its client count to 2.9 million, with a 0.05 per cent fall in the market share to 5.8 per cent.

Traditional brokers like ICICI Securities reported a 0.7 per cent MoM increase in its client count to 1.9 million, with a consistent market share of 4 per cent. Kotak Securities reported a 2.8 per cent MoM increase in its client count to 1.5 million, with a consistent market share of 3 per cent. HDFC Securities reported a 3.2 per cent MoM increase in its client count to 1.3 million, with a consistent market share of 2.7 per cent.