The addition of demat accounts in February fell to a 21-month low at 2.26 million even though their total number surpassed the 190 million mark, according to data from CDSL and NSDL. As the stock markets have entered a correction phase since late September, the monthly addition of new demat accounts also showed a declining trend, dropping from 4.55 million in July 2024 to 2.26 million in February.
CDSL added 1.92 million demat accounts, bringing its total to 151.24 million, while NSDL saw an addition of 0.34 million accounts, reaching 39.16 million in February. Notably, CDSL crossed the 150 million account milestone on February 12, 2025.
Three reasons why the market is falling today: BSE Small Cap Index down 2%
The benchmark indices, Sensex and Nifty, declined by up to 14% from their peak levels recorded in late September, while the broader indices — BSE Midcap and BSE Smallcap — dropped by as much as 23% during the same period.
Experts noted that, in addition to market corrections, the decline in demat account openings was influenced by reduced activity in the derivatives market. This slowdown followed stricter regulations introduced by the Securities and Exchange Board of India (SEBI) to curb excessive futures and options (F&O) trading.
The average daily turnover in the derivatives segment (BSE and NSE) slumped by 46%, falling from Rs 537.26 lakh crore in September 2024 to Rs 287.59 lakh crore in February 2025.
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