Nearly 108 mn demat accounts added in December 2022, shows data

Although the additions were higher than the past three months, the number continued to be below the FY22 average run-rate of 2.9million.

CDSL retained its overall market share of 72 per cent. With respect to incremental demat account additions, NSDL’s market share improved to 21.3 per cent from 20.9 per cent in November 2022.

There has been decline in NSE active accounts which continues at a lower pace. Active user clients in the industry as a whole rose 12% year-on-year to 35 million. However, it fell 1% month-on-month. This was the sixth consecutive month of a decline and the intensity of the fall was maintained at 0.68m accounts in December 2022.

At present, the top five discount brokers account for 59.3% of overall NSE active clients, slightly up from 59.1% in November 22.

On a monthly basis, Zerodha reported 0.2% decline in its client count to 6.6m, with a 32bp rise in market share to 18.7%, while Upstox report 7.1% decline in its client count to 3.9m, with a 61bp dip in market share to 10.9%.

Retail F&O revives strongly compounded by heightened volatility with India’s VIX rising to 14.8 in December 2022 from 13.8 in November 2022. This translated into strong traction in volumes on the bourses with overall ADTO jumping 30% as compared to November 2022.

However, client addition activity was sluggish with incremental demat accounts at 2.1m in Dec’22 v/s an average of 2.9m in FY22.