About half the total
demat account holders in India have
exited the stock market in the past few years.
Of the 2.1 crore
demat accounts, about 1.1-crore are inactive (with zero holding of shares),
leaving policy makers worried.
Though the total
number of demat accounts increased by about a million in calendar year 2013
from the previous, a majority of the new openings were for investing in
tax-free bond issuances and nonconvertible debentures (NCDs).
A lot of accounts
could be of zero value, inactive, dormant, or
joint accounts.
The exodus of small
investors has been evident as more than half the BSE 500 companies saw a sharp
decline in the number of retail investors.
Consider this: more
thana 5.3 lakh retail investors exited Indias second - largest company Reliance
Industries, once their favorite stock.
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