Nearly 28 million demat accounts added in 2022, shows data

Close to 28 million demat accounts were added during the 2022 calendar year, with the total active accounts tally climbing to 108.3 million at the end of December.

The pace of growth was 34.3 per cent, which was lower than that of 2021 which stood at 61.8 per cent. In absolute terms too, 2021 was better than 2022 with the addition of 30.8 million demat accounts.

For the future, industry players believe that given the large base, there could be further moderation in growth in 2023. Also, spike in volatility, lackluster returns and correction in small-caps could weigh on new investor sentiment.

Since the outset of the Covid-19 pandemic, the number of new investor accounts has close to tripled. These new investors also account for the bulk of the retail assets under custody.