Indian retail investors played key role in last 2 yrs, demat account opening rises to 26 lakh per month in FY22: FM

  • The FM in her speech during the Silver Jubilee Celebration of India’s largest depository, National Securities Depository Limited (NSDL), appreciated the unbound trust shown by the country’s retail investors in the market.

Finance Minister Nirmala Sitharaman said Indian retail investors have played a key role, especially during the last two years. She added these investors became “shock absorbers unlike FPIs”. The FM was saying in her speech during the Silver Jubilee Celebration of India’s largest depository, National Securities Depository Limited (NSDL) on Saturday.
During the event, Sitharaman begins her speech by appreciating the unbound trust shown by the country’s retail investors in the market. She said, “Indian retail investors have played a key role, especially during the last two years; they have shown the world what they can do by standing up and becoming shock absorbers, unlike FPIs.”
Thanking the Indian retail investors, Sitharaman pointed out, that from an average of 4 lakh new Demat accounts opened every month in 2019-20, it tripled to 12 lakh per month in 2020-21 and has further increased to around 26 lakh per month in 2021-22.
The FM also launched ‘Market ka Eklavya,’ an online investor awareness program for students in Hindi and other regional languages, during the celebration.
She said, “Through ‘Market ka Eklavya’, you will be able to reach out to many who are in need of financial literacy. It is the right time when people have an inclination to know about the market and also the right approach taken by NSDL by educating the students.”
Suggesting that NSDL make the initiative global by introducing the programme in world languages, Sitharaman further added, “by this we can truly become the vishwaguru as envisioned by our Prime Minister. There are many youth across the world who will be benefited from this initiative if it is made available in several languages.”
Launched in online mode, ‘Market ka Eklavya’ is aimed to introduce the basics of the securities market and also impart training on financial markets for students.
Further, Sitharaman highlighted the progress being made by FinTech companies in the country and how India has been playing a leading role in this sector.
She lauded saying, “Startups in fintech today are doing extraordinary work.” She further spoke about how investors across the globe are paying attention to the success of the country’s fintech companies.
Additionally, the FM also introduced the ‘My Stamp’ and special cover, honouring NSDL’s contribution to the development of Indian capital markets.
On the DLT Technology, Chairperson, SEBI, Madhabi Puri Buch unveiled NSDL’s Distributed Ledger Technology (DLT) blockchain platform for Debenture Covenant Monitoring.
Sebi chairperson said, “’Demat’ revolution was the very first step by which entire market adopted technology. This day will also be remembered as an important day as we are taking the first step in terms of the use of DLT in the markets.”
In a statement, it said, aimed at ensuring total transparency, the DLT Blockchain is to bring issuers and debenture trustees on a common ground to record asset charges as well as monitor the asset cover ratio and various covenants of the issuance, transparency in the debenture market. NSDL claims that the Depository will move one step ahead in adopting new technologies and building the critical market infrastructure for the security and covenant monitoring of Bond issuances.
FM also appreciated the rapid progress being made by the Depository, especially by adopting new technologies, and also mentioned that NSDL stands true to its tagline ‘Technology, Trust and Reach’.
Meanwhile, NSDL Managing Director & CEO, Padmaja Chundru said, “NSDL opened the first demat in India in 1996. NSDL has a pan-India presence through 57,000 service centres. There are more than 27 Million demat accounts and the value of securities is more than $4 Trillion; this will reach $5 trillion very soon.”
NSDL celebrated the completion of 25 years of its service to the Indian capital markets today, in the presence of the Union Finance Minister, Chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, and Chief Postmaster General, Maharashtra Circle, Veena Ramakrishna Srinivas.
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