With a push from commodity traders, the number of demat account holders in the country has crossed 2 crore (20 million) mark in May, 2012.
Majority of the about 3 lakh demat accounts opened this year (2012) so far have been by those who are buying gold, silver, copper and platinum among other metals in electronic form. 0
Now, the NSDL (National Securities Depository Ltd) holds over 10.21 million demat accounts while CDSL (Central Depository Services Ltd ) holds nearly 80 lakh accounts.
On NSDL, which gives out monthly data, the number of accounts in December 2011 stood at 10.18 million. At NSDL alone $ 1.22 trillion worth of assets are held in demat accounts while CDSL holds over $ 174 billion worth of assets.
Number of demat accounts are considered as benchmark to gague financial inclusion in India.
Of the total number of demat accounts, 5-8 % of demat accounts are purely of commodity traders who do not have any equity exposure. Last time the major push for demat acconts was seen durnig the IPO (initial public offer) of Coal india in 2010, which was country's largest equity public issue.
According to official of leading depository, about 30 to35 % of the entire demat accounts are zero balance as no transactions were taking place. Recently, all the banks are encouraging their savings account customers to open online trading and demat accounts. Mostly the clients agree as banks do not charge them for initial first two years. However, there is no business coming from most of such accounts as clients are not operating them due to poor market scenario.
The equity markets may be in doldrums but depositories are expecting that number of demat accounts will grow by another 50 % this year (2012). This is mainly as insurance policies will be allowed to be held in electronic form. However, depository participants say that insurance demats will be held in a separate entity as both insurance and equity regulators are different and there has been history of a clash between them.
Majority of the about 3 lakh demat accounts opened this year (2012) so far have been by those who are buying gold, silver, copper and platinum among other metals in electronic form. 0
Now, the NSDL (National Securities Depository Ltd) holds over 10.21 million demat accounts while CDSL (Central Depository Services Ltd ) holds nearly 80 lakh accounts.
On NSDL, which gives out monthly data, the number of accounts in December 2011 stood at 10.18 million. At NSDL alone $ 1.22 trillion worth of assets are held in demat accounts while CDSL holds over $ 174 billion worth of assets.
Of the total number of demat accounts, 5-8 % of demat accounts are purely of commodity traders who do not have any equity exposure. Last time the major push for demat acconts was seen durnig the IPO (initial public offer) of Coal india in 2010, which was country's largest equity public issue.
According to official of leading depository, about 30 to35 % of the entire demat accounts are zero balance as no transactions were taking place. Recently, all the banks are encouraging their savings account customers to open online trading and demat accounts. Mostly the clients agree as banks do not charge them for initial first two years. However, there is no business coming from most of such accounts as clients are not operating them due to poor market scenario.
The equity markets may be in doldrums but depositories are expecting that number of demat accounts will grow by another 50 % this year (2012). This is mainly as insurance policies will be allowed to be held in electronic form. However, depository participants say that insurance demats will be held in a separate entity as both insurance and equity regulators are different and there has been history of a clash between them.
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