The total number of Demat accounts in India crossed the 10-crore mark for the first time, which denotes a three-fold jump in over two years, according to the Central Depositories Services India Ltd (CDSL).
In August alone, over 7 crore active accounts were registered.
Demat accounts simplify the process of holding investments such as shares, bonds, government securities, mutual funds, insurance, and exchange-traded funds (ETFs), by eliminating the hassles of handling and maintaining paper shares and related documents physically.
It essentially helps keep track of investments. Operating a Demat account is often a secure operation because of the SEBI's (Securities and Exchange Board of India) regulations in place and the transparency of online transactions.
Any resident of India who is 18 years of age or older and possesses a PAN card is qualified to open a demat account. For the purpose of registering the bank account, you must present your PAN card, documentation of your residence, and a copy of a cancelled check.
Delighted that investors are contributing to India's growth story, said Nehal Vora, Managing Director & Chief Executive Officer of CDSL, referring to the jump in Demat accounts, which are needed for trading.
Experts said the pandemic and a push toward digitisation were the biggest reasons for the surge in Demat accounts.