Demat accounts rise by 4.4 million to reach 175 million in September: MOFSL

The total number of demat accounts in India reached 175 million in September 2024, according to Motilal Oswal report. This reflects an increase of 4.4 million accounts added during the month, resulting in an average monthly addition of 4 million accounts year-to-date for FY25.

The report highlights a notable rise in demat account openings, with Central Depository Services Limited (CDSL) continuing to expand its market share. In contrast, National Securities Depository Limited (NSDL) experienced a 410 basis points (bp) decline in its market share for total demat accounts and a 90 bp drop for incremental accounts year-on-year (YoY).

The National Stock Exchange (NSE) experienced a month-on-month increase of 2.4% in active clients, reaching 47.9 million in September 2024. The leading five discount brokers now represent 64.5% of all active clients on the NSE, an increase from 61.9% in September 2023.

In September 2024, Zerodha's client base grew by 1.1% month-over-month, reaching 8 million; however, its market share decreased by 20 basis points to 16.6%. In contrast, Groww experienced stronger growth, with a 3.1% increase in clients, bringing its total to 12.3 million, which also boosted its market share by 15 basis points to 25.6%.

Angel One reported a 3.1% rise in clients, reaching 7.4 million, and holds a market share of 15.4%. Upstox saw a 1.5% increase to 2.8 million clients, though its market share fell to 5.9%.

Among traditional brokers, ICICI Securities reported having 1.9 million clients, experiencing a 10 basis point decline in market share to 4.2%. In contrast, IIFL Securities had a client base of 0.5 million and a market share of 1%.

Surge in F&O volumes

The Total Average Daily Turnover (ADTO) increased by 7.1% month-over-month to ₹538.6 lakh crore, primarily fueled by a 7.2% rise in Futures and Options (F&O) ADTO, while cash ADTO saw a decline of 3.8% MoM.

The BSE's total ADTO surged by 16% MoM, and the NSE experienced a 4.3% MoM increase. Although BSE's market share in cash turnover fell to 6.6%, its share in options notional turnover grew to 26.8%.

Commodity volumes on the Multi Commodity Exchange (MCX) rose by 17.4% month-over-month (MoM) to ₹53.1 lakh crore, with options volumes contributing ₹47 lakh crore. Significant growth was driven by Crude Oil (20.5%), Gold (107.3%), and Natural Gas (27.2%). Additionally, futures Average Daily Turnover (ADTO) increased, led by Gold (16%), Natural Gas (32.4%), and Crude Oil (22.6%), while Silver ADTO saw a 12% MoM decline.