Highest-ever 192.4 million demat accounts opened in FY25, brokerages add 41.1 million

Domestic brokerages added a record 41.1 million demat accounts in FY25, pushing the total to 192.4 million—marking the highest-ever annual increase in absolute terms. The monthly average of 3.42 million new accounts also set a new benchmark for a financial year. Despite the strong growth, the rate of increase declined from 32.2% in FY23 to 27.1% in FY25, owing to a higher base. Demat accounts, which facilitate electronic holding of stocks and mutual funds, are fast approaching the 200-million mark. However, this does not equate to unique investors, as individuals can hold multiple accounts; estimates peg the number of distinct investors at around 120 million. 

The growth trend accelerated post-Covid-19 and is supported by easier onboarding processes, largely bullish markets, and lower trading costs. Interestingly, new account additions in recent years match the total number of accounts that existed before the pandemic. Kotak Institutional Equities noted that retail access to capital markets has significantly broadened across primary issues, secondary trading, and indirect avenues such as mutual funds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs). The Securities and Exchange Board of India (SEBI) and exchanges, clearing corporations, brokers, and registrars have improved market accessibility. The regulator’s collaborative policymaking approach and emphasis on market stability and investor protection have helped maintain investor confidence. However, consistent past returns and optimism about future market performance are major contributors to rising retail participation. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.