On December 31, 2006, as many as 4.3 million demat accounts suspended due to the lack of PAN details of the account holders. India had 9.9 million demat accounts and now, almost 43 per cent of that has been suspended with the two depositories NSDL and CDSL.

Surprisingly, with the suspension of Country’s 43 percent demat account, India share market has seen no effect on the trading.

AT National Stock Exchange, the average trading volume in equity market was Rs 8,505 crore for the month of December. And after the suspension, for the nine trading days for January it went up to Rs 8,476 crore.

On Friday, it crossed the volume of Rs 10,000 crore on a record trading volume of Rs 10,015 crore.

The January average jumps, except January 2, have touched to Rs 8,793 crore that showed better performance than the December average.

According to the reports and the trading figure, these 4.3 million suspended demat accounts have had no impact on the trading volumes.

The delivery based trading holds comparatively low volume in trading. The intraday trading holds major volume in daily trading. With this, the passive traders do not pose any impact on the trading volumes.

Related posts:

1. PAN sole identification for participation in equity market