Despite the slowdown, the total registered demat accounts in the country reached 190 million in February
The number of new demat account additions in India fell to a 21-month low of 2.3 million in February
Mumbai: 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 (CDSL) accounted for 151.24 million demat accounts, while National Securities Depository Ltd (NSDL) 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 Trading
In the capital markets, the Bombay Stock Exchange (BSE) is steadily increasing its market share in the futures and options (F&O) 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 (NSE) continued its dominance, holding a 95% market share in February 2025.
Stock Market Turnover Sees Decline
Total average daily turnover (ADTO) in the stock market declined 4% month-on-month in February to ₹289 trillion, driven by a 4% drop in F&O trading (₹288 trillion) and a 5% dip in cash trading (₹1 trillion). Additionally, option premium ADTO fell by 9% to ₹594 billion.
Corporate Bond Market Expands Amid Equity Volatility
Meanwhile, India’s bond market stood at USD 2.69 trillion as of December 31, 2024, with the corporate bond segment accounting for over USD 602 billion, according to data compiled by IndiaBonds.com from the Clearing Corporation of India and the Securities and Exchange Board of India (SEBI).
"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. In rupee terms, the overall bond market grew by 6.5%, while corporate bonds expanded at a faster pace of 9%.
Unlike developed markets where bond markets are 1.2 to 2 times the size of equity markets, India’s bond market stands at just 0.65 times of the equity market capitalization.
“With equity market volatility rising, portfolio diversification through bonds has gained traction, as reflected in increasing investor interest this quarter,” Goenka added.
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 (CDSL) accounted for 151.24 million demat accounts, while National Securities Depository Ltd (NSDL) 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 Trading
In the capital markets, the Bombay Stock Exchange (BSE) is steadily increasing its market share in the futures and options (F&O) 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 (NSE) continued its dominance, holding a 95% market share in February 2025.
Stock Market Turnover Sees Decline
Total average daily turnover (ADTO) in the stock market declined 4% month-on-month in February to ₹289 trillion, driven by a 4% drop in F&O trading (₹288 trillion) and a 5% dip in cash trading (₹1 trillion). Additionally, option premium ADTO fell by 9% to ₹594 billion.
Corporate Bond Market Expands Amid Equity Volatility
Meanwhile, India’s bond market stood at USD 2.69 trillion as of December 31, 2024, with the corporate bond segment accounting for over USD 602 billion, according to data compiled by IndiaBonds.com from the Clearing Corporation of India and the Securities and Exchange Board of India (SEBI).
"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. In rupee terms, the overall bond market grew by 6.5%, while corporate bonds expanded at a faster pace of 9%.
Unlike developed markets where bond markets are 1.2 to 2 times the size of equity markets, India’s bond market stands at just 0.65 times of the equity market capitalization.
“With equity market volatility rising, portfolio diversification through bonds has gained traction, as reflected in increasing investor interest this quarter,” Goenka added.
( Source : Deccan Chronicle )
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