The recent boom in the stock markets seems to be attracting more retail investors to the bourses, if the number of new ‘demat’ accounts being opened, is any indication.

According to the latest ‘demat’ accounts data released by Central Depository Services Ltd (CDSL), one of the two depositories, shows that more than four lakh new accounts have been opened in the last two-and-a-half months – a 50 per cent increase in monthly average compared to that of the first eight months of the current year.

Rise in NSDL too

Though corresponding figures of NSDL, the other depository, are not available, NSDL officials said there has been a noticeable increase in the number of new accounts in recent times.

The number of demat accounts with CDSL has almost doubled to 28.24 lakh as on November 15, 2007, from 15.55 lakh as on January 1, 2007, according to a release from the depository here on Saturday.

Mandatory opening

As on April 1, 2006, PAN Card number has been made mandatory for opening the demat account.

In the beginning of this year, the total number of accounts frozen for non-PAN compliance with CDSL was 6.07 lakh.

This has come down to 3.95 lakh as on November 15, 2007.

An official with CDSL said, “The number of demat accounts in this financial year is mainly because of the jump in number of IPOs and also the positive market sentiments.”

“The BSE sensitive index last year was around 12,000 now it stands at 20,000, people are now willing to open demat accounts to participate in our booming markets.”

Retail participation

Jayesh Sule, Executive Vice-President, NSDL, said, “the demat number has definitely been going up. There has been a lot of retail participation now.”

“This is mainly because the market is doing extremely well now and also because the value of stocks have gone up.”

“The total number of demat account with NSDL as on November 10, stands at 8.2 million.”

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