Dematerialized Account Growth Analyzed
In 2025, the number of dematerialized (demat) accounts, which are like digital lockers for stocks, slowed down quite a bit. Instead of growing quickly, it only increased by 30.6 million, which is about 2.6 million accounts each month. This is a big change compared to the year before when the growth was much faster – a jump of 33%. Many investors were hesitant to put more money into the market due to some worries about companies’ profits and a trade fight between the US and India.
Key Points
- Demat accounts increased by 30.6 million in 2025.
- Investor growth slowed down due to market uncertainty.
- Most stocks performed poorly, with 60% delivering losses.
- IPOs boosted account growth significantly in 2025.
- Many investors open accounts for potential IPO allocations.
- Future growth depends on stronger market returns.
The stock market had a bumpy year in 2025. The Sensex and Nifty rose, but many big companies didn’t do so well. Around 60% of the biggest companies listed on the stock market actually lost money for investors. This made people a little nervous about investing more.
Experts say that how quickly demat accounts grow depends on two things: new people starting to invest and existing investors moving their money between different brokers. In 2025, people stopped switching brokers as much, which helped slow down the growth. The stock market was also correcting itself, meaning it was bouncing back from a previous high, which also affected the growth.
A lot of people opened demat accounts specifically to buy shares when new companies started selling their stock (Initial Public Offerings or IPOs). Many investors opened accounts for their families to try and get a piece of the IPO. Because of this, a total of 103 companies raised a lot of money – about Rs 1.75 trillion – through IPOs.
Looking ahead, experts believe the growth in demat accounts will depend on the stock market doing well. If the market goes up, more people will want to invest. Currently, only about 10% of India’s population invests in stocks directly, which is lower than in other countries. Analysts predict the market will grow by 10-12% next year, but a strong market could lead to another big increase in demat accounts.
To understand market trends, focus on overall investment returns and investor confidence.
