Demat Account Additions Hit 21-Month Low Amid Market Decline

The number of new demat account additions in India fell to a 21-month low of 2.3 million in February 2025, down from 2.8 million in January, as ongoing corrections in the equity market weighed on investor sentiment.Despite the slowdown, the total registered demat accounts in the country reached 190 million in February, according to an analysis by Motilal Oswal Financial Services. Central Depository Services Ltd accounted for 151.24 million demat accounts, while National Securities Depository Ltd had 39.16 million accounts.The peak in demat account additions was recorded at 4.5 million in July 2024, but the trend began reversing in October, when additions dropped to 3.5 million as markets started correcting.BSE Gains Market Share in F&O TradingIn the capital markets, the Bombay Stock Exchange is steadily increasing its market share in the futures and options segment. The exchange held a 36% share in notional turnover in February 2025, maintaining its January figures, while its option premium turnover grew to 19% from 18% in the previous month, Motilal Oswal noted.However, in the cash market segment, the National Stock Exchange continued its dominance, holding a 95% market share in February 2025.Stock Market Turnover Sees DeclineTotal average daily turnover in the stock market declined 4% month-on-month in February to ₹289 trillion, driven by a 4% drop in F&O trading and a 5% dip in cash trading. "As India moves towards becoming a USD 7-8 trillion economy in the next five years, a significant portion of capital formation will be led by the expanding bond markets, particularly corporate bonds," said Vishal Goenka, co-founder of IndiaBonds.com.In the first nine months of FY 2024-25, USD 100 billion was added to India’s outstanding bond market despite a 2.7% depreciation in the rupee.