Record Number Of New Demat Accounts Created Amid Lockdown
It is interesting to know that there is a significant increase in the number of new account holders to the Indian stock market during the lockdown days. Through March and April were the critical period for all of us due to lockdown number of new accounts opened during this time hit a high.
Reports say that around 1.2 million new investors opened Demat accounts with the Central Depository Services (CDSL) alone in March and April. About 6.18 lakh new demat accounts were opened in CDSL in March and another 6 lakh in April. At the same time NSE internet trading volume rise by 53 per cent at the month of April.
All this data says that lockdown was fruit full time for investors. More and more people are taking to equities against traditional investments like fixed deposit and gold. People are staying at home during the lockdown and have plenty of time. Work from home opportunity gives everybody a lot of free time. People wisely use this free time to start investing. The transaction is very easy these days as people are sitting at home. You can schedule 24 accordingly.
There are several quality stocks available in the stock market which attracted a lot of people. Since the interest rate of FD is increased substantial people find stock market an attractive place.
SEBI and other market participants have made the end-to-end account opening process very easy and entirely digital. This also could be another reason for this hike in the account holders.
Indians are quite apprehensive about the stock market but the pandemic has changed it too. In the fact markets are the only thing that is opened while everything else around us is shut. And people find the stock market is the only way to find money during the lockdown.