Tag: demat accounts

Total demat accounts increased to 154 million in April: Motilal Oswal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The total number of demat accounts surged to 154 million in April, according to Motilal Oswal Financial Services.

The addition of new accounts remained relatively flat at 3.1 million, consistent with the average monthly addition rate observed throughout the financial year 2024.

The average monthly additions stood at 3.1 million in FY24.

CDSL demonstrated gains both in overall market share and on a month-on-month basis, Motilal Oswal said.

On the other hand, NSDL lost 400bp/470bp market share in total/incremental demat accounts on a year-on-year (YoY) basis.

Shifting the focus to brokerage activities, the National Stock Exchange (NSE) saw a 2.6% month-on-month increase in active clients, reaching a total of 41.8 million in April 2024.

The top five discount brokers now command a 63.9% share of total NSE active clients.

Among key brokerage firms, Zerodha reported a marginal increase in client count but experienced a slight decline in market share.

Meanwhile, Groww, Angel One, and Upstox witnessed growth in both client count and market share.

In the traditional brokerage segment, ICICI Securities and IIFL Securities reported modest increases in client count, albeit with fluctuations in market share, reflecting the dynamic nature of the market.

Turning to derivatives trading, BSE experienced mixed trends, with a minor decline in the total average daily turnover (ADTO) attributed to a slight decrease in F&O (Futures and Options) ADTO, countered by an increase in cash ADTO.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Multiple Demat accounts can help save more on income tax returns, expert explains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The countdown for filing returns has started. By filing an ITR, an individual can save more taxes on his/her income. But did you know that you could save more by having multiple Demat accounts? Yes, that is possible and here we explain how it works.

Speaking with CNBC-Awaaz, tax expert Mukesh Patel said, “Even today, many people have this wrong impression that I can only have one Demat account after my name. As per the laws, you can keep more than one Demat account.”

#TaxGuru | एक से ज्यादा डीमैट अकाउंट से होगी टैक्स की भारी बचत सिर्फ करनी होगी टैक्स सेविंग की सही प्लानिंग, कैसे जानिए टैक्स गुरू Mukesh Patel से@RoyLakshman @MukeshPatelTax #DematAccount #MultipleDematAccounts #TaxExpert #Taxsaving pic.twitter.com/eqkkocAUbk

— CNBC-AWAAZ (@CNBC_Awaaz) May 11, 2024

However, while doing so, a person is required to stay cautious about certain restrictions.

“You just need to take care of one thing: you can’t keep more than one account with your depository participant (DP) or broker. If you wish to keep more than one Demat account with two different DPs or brokers, and there should be no doubt about this,” Patel noted.

What’s the benefit from it?

“You need to do a cost-benefit analysis of whether the benefit you wish to take is worth it in comparison with an extra amount of money you have to spend,” Patel said.

Further. he went on to highlight that the Central Board of Direct Taxes (CBDT) in a circular in 2007 had noted that a taxpayer can keep separate status of a trader as well as the investor.

“If I wish to take benefits of both trader and investor, then I need to have two separate Demat accounts for this — one for trading purposes and the other for investment,” Patel said.

“Secondly, if I don’t wish to be a trader and wish to continue as an investor… there is Section 45 (2A), under which it has been stated that you’ll have to follow the FIFO (First in, first out) method,” he added.

Besides that, Patel also urged people to open more Demat accounts in the names of other members of their families as that, too, helps in saving taxes.

However, people must understand that there are certain disadvantages of opening more than one Demat account as it invites additional changes like annual maintenance among others. As a result, this increases your overall trading expenses. Moreover, keeping track of multiple Demat accounts can be a bit tricky at times.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India now has 151 million demat accounts; CDSL continues to gain market share: Motilal Oswal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The total number of demat accounts in the country increased to 151 million as of March 31, 2024, according to a recent note from Motilal Oswal. New client additions stood at 3.1 million in March, which was in-line with the average monthly addition for financial year 2024.

Total number of active clients at the National Stock Exchange (NSE) increased 1.8% in March compared to February. Discount brokers currently account for 63.8% of the total active NSE clients, compared to 59.9% last year.

Active clients in the NSE increased for the ninth straight month to 40.8 million, a growth of 1.8% in March from the previous year.

While CDSL continued to gain market share in terms of total demat accounts, NSDL lost close to 570 basis points in market share in incremental demat accounts.

Discount broker Zerodha reported a 0.9% increase in its client count compared to last month to 7.3 million. However, its market share dipped by 20 basis points to 17.9%. Upstox also reported a 0.6% increase in total client count to 2.5 million but market share fell by 10 basis points to 6.2%.

Groww reported a 3.8% increase compared to last month in its client count, which stood at 9.5 million and its market share also rose 50 basis points to 23.4%.

Traditional brokers like ICICI Securities saw a 1.3% drop in total client count, while IIFL Securities reported a 0.3% increase in total client count.

Average Daily Turnover (ADTO) for March fell by 5% to ₹461 lakh crore, with F&O ADTO declining 5% and Cash ADTO declining 16% from last month.

BSE’s market share in the total cash market improved to 8.5% in March, while its market share in the total options notional segment improved to 17.5% in March.

For MCX, total volumes increased to ₹26.8 lakh crore in March. Average Daily Turnover for Gold doubled compared to last month, while that for Silver fell 32%.

Shares of CDSL are trading 6.1% higher at ₹1,998.35, while those of MCX are trading 2.2% lower at ₹3,819.15.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Total Demat Accounts at 148 Million: Here’s why shares of Angel One, CDSL gained

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Angel One are trading with gains of over 9% on Thursday. The stock has snapped a five-day losing streak, during which the stock had corrected by 15%.

Angel One is also among the worst performing stocks on the Nifty Smallcap index since it made its peak on February 8 this year. Since then, the stock had corrected nearly 30% as of Wednesday’s close. The stock, on a standalone basis, had corrected nearly 40% from its own record high of ₹3,896.

A report from brokerage firm Motilal Oswal stated that the total number of demat accounts in the country increased to 148 million in February 2024. This compares to the 144 million number in January and 113 million in February 2023.

New account additions surged to 4.3 million last month, compared to average monthly additions of 2.1 million in financial year 2023.

“Angel One, which relies heavily on income from the F&O segment, has witnessed a strong increase in the number of daily orders placed,” Motilal Oswal wrote in its note.

The broking firm also reported a 5.2% month-on-month increase in NSE active client count to 5.9 million, with a market share of 14.9%, which is similar to the levels it had in January.

Shares of CDSL are also trading with gains in today’s trading session. Motilal Oswal wrote in its note that CDSL continued to gain market share in terms of the total demat accounts and also an increase in market share on a month-on-month basis.

On a year-on-year basis, NSDL lost 380 basis points market share in total demat accounts.

Shares of Angel One are trading 8.9% higher at ₹2,691.55, while those of CDSL are trading 1.8% higher at ₹1,715.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Angel One client base surpasses 2 crore-mark

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Angel One said the brokerage firm’s client base surpassed the 2 crore-mark, aided by the robust business trajectory. The company focuses on making financial journey simpler by delivering a comprehensive solution for all investment needs, the firm said in a statement.

Prabhakar Tiwari, Chief Growth Officer, Angel One Limited, said, “We remain steadfast in our commitment to reaching our north star—empowering one billion lives, with our cutting-edge wealth-creation solutions.“

Dinesh Thakkar, Chairman and Managing Director, Angel One Limited, said, “Over the past year, Angel One has demonstrated substantial year-on-year growth, solidifying its position as the leading fintech player in India.”

Angel One said it is the largest listed retail stock broking house in India, in terms of active clients on NSE.

Meanwhile, the total number of new demat accounts opened in December 2023 reached a historic high of 42 lakh.

With this, the number of demat accounts in India now stands at 13.93 crore. This is a 50% surge compared to November, which saw 28 lakh new demat accounts.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CDSL allows investors to get statements in 23 languages, launches 24*7 market chatbot

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Central Depository Services (India) Limited (CDSL) has launched two initiatives aimed at promoting inclusivity and accessibility in the capital market landscape. These include inclusion of multi-lingual Client Account Statement (CAS) and launch of CDSL Buddy Sahayta 24*7′ Chatbot.

With the ‘Apka CAS – Apki Zubaani’ initiative, investors can now receive their statements in any of the 23 diverse Indian languages, promoting ease of accessibility, CDSL said in a statement.

“This initiative will offer investors a consolidated view of their securities held in a demat account in a language of their choice,” it said.

On the other hand, the newly launched ‘CDSL Buddy Sahayta 24*7′ chatbot is aimed to simplify investors’ journeys towards self-sufficiency.

Initially available in four languages, the chatbot will provide round-the-clock assistance to investors navigating the complexities of the securities market.

This initiative aligns with CDSL’s ongoing efforts to enhance market awareness, especially in the realms of cybersecurity and financial literacy, CDSL said.

Additionally, CDSL, in collaboration with knowledge partners KPMG, presented a Thought Leadership Report titled ‘Reimagine Digital Trust in Capital Markets.’

Further, as part of its 25th-anniversary celebrations, CDSL concluded the ‘Neev’ campaign, a Pan-India Financial Literacy initiative spanning 25 cities.

CDSL, India’s listed depository, maintains and services over 10 crore demat accounts of Investors or Beneficial Owners (BOs) spread across India.

It began operations in February 1999 and facilitates holding and transacting in securities in electronic form and facilitates settlement of trades on stock exchanges. Its major shareholders are the BSE, Standard Chartered Bank, PPFAS Mutual Fund, LIC, and Canara Bank.

The subsidiaries of CDSL include CDSL Ventures, which is the first and the largest KYC registration agency since 2008 with over 4.5 crore records; CDSL Insurance Repository and CDSL Commodity Repository.

Meanwhile, the total number of new demat accounts opened in December 2023 reached a historic high of 42 lakh. With this, the number of demat accounts in India now stands at 13.93 crore. This is a 50% surge compared to November, which saw 28 lakh new demat accounts.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Demat Rush | December saw record high of new accounts — here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The total number of new demat accounts opened in December 2023 reached a historic high of 42 lakh. With this, the number of demat accounts in India now stands at 13.93 crore. This is a 50% surge compared to November, which saw 28 lakh new demat accounts.

The consistent rise in account openings is indicative of the growing investor interest and participation in the financial markets, experts say.

“The recent surge in the market has triggered a fear Of missing out (FOMO), prompting individuals to join the market rally to avoid being left behind. Optimism prevailed further concerning the possibility of rate cuts by the US Federal Reserve in the coming months, influencing investor sentiment and driving them towards market participation,” ICICI Direct said in a note.

Additionally, the success of various initial public offerings (IPOs) has lured in new investors eager to capitalise on these opportunities.

The returns observed in the small- and mid-cap index throughout 2023 further fuelled investor enthusiasm, serving as an additional incentive for new entrants to the market, it said.

More numbers

If we talk about financial year 2022-23, there was an addition of 2.5 crore demat accounts, with a monthly average of over 20 lakh.

The statistics also revealed a significant uptick in demat accounts opened with the two major depositories — the Central Depository Services (CDSL) and the National Securities Depository (NSDL) in FY23.

Over the 12 months of FY23, the number of accounts surged by 27%, rising from 8.97 crore to 11.446 crore.

Looking back at the trend in recent financial years, the growth is evident.

In the financial year 2021-22 (FY22), the number of demat accounts stood at nine crore. This marked a substantial increase from FY21, which recorded 5.5 crore accounts.

Going further back, in FY14, there were 2.2 crore accounts, and the subsequent years witnessed a steady climb — 2.3 crore, 2.5 crore, 2.8 crore, 3.2 crore, 3.6 crore, and 4.1 crore in FY 15, FY16, FY17, FY18, FY19 and FY20, respectively.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI extends demat, mutual fund nomination deadline to June 2024: Know how to nominate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Capital markets regulator Securities and Exchange Board of India (SEBI) has extended the deadline for mutual fund and demat account holders till June 30, 2024 to nominate a beneficiary or opt out of it. Earlier, the deadline for the same was December 31, 2023.

“Based on representations received from the market participants, for ease of compliance and investor convenience, it has been decided to extend the last date for submission of ‘choice of nomination’ for demat accounts and mutual fund folios to June 30, 2024,” SEBI said in a circular.

If investors miss the nomination deadline, SEBI may freeze debits from their holdings. This means investors won’t be able to withdraw from mutual funds or use their demat accounts for trading.

Importance of nomination

Nomination is a process through which a securities holder designates who should receive their securities in the event of their death.

It’s a step to ensure that the investments are transferred smoothly to the chosen beneficiaries. Without nomination, the investments may be subject to lengthy and potentially costly legal procedures.

The nomination process

Adding a nominee to a demat account involves a few steps. Investors can log in to their demat accounts, proceed to the ‘Profile Segment,’ and navigate to the ‘My Nominees’ section.

From there, the option to ‘add nominee’ or ‘opt-out’ is available.

Adding details of the nominee, including an uploaded ID proof, percentage share allocation, and an e-signature via Aadhaar OTP, complete the process.

Only individuals holding demat accounts singly or jointly can nominate. Non-individual entities like societies, trusts, corporations, partnership firms, Hindu Undivided Families, and holders of Power of Attorney cannot nominate.

Joint holders can nominate, but if one of them passes away, the securities will be transmitted to the surviving holders unless there is a nominee.

NRIs can nominate directly, but power of attorney holders cannot nominate on their behalf. Minors cannot nominate either directly or through a guardian.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Last day for adding nominees to mutual funds, demat accounts is Dec 31: Check process and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mutual fund investors and demat account holders trading in an individual capacity should mark December 31, 2023, on their calendars as a crucial deadline. The Securities and Exchange Board of India (SEBI) has made it mandatory for all such account holders to either furnish nomination declarations or opt out of nominations by this date.

Existing investors who have already provided nomination details are not required to resubmit details.

Those who have not submitted nomination details till date and intend to submit their nomination or opt out of nomination should do so.

Importance of nomination

Nomination is a process through which a securities holder designates who should receive their securities in the event of their death. It’s a step to ensure that the investments are transferred smoothly to the chosen beneficiaries.

Without nomination, the investments may be subject to lengthy and potentially costly legal procedures.

The nomination process

Adding a nominee to a demat account involves a few steps, primarily carried out online for ease and efficiency. Investors can log in to their demat accounts, proceed to the ‘Profile Segment,’ and navigate to the ‘My Nominees’ section.

From there, the option to ‘add nominee’ or ‘opt-out’ is available.

Details of the nominee, including an uploaded ID proof, percentage share allocation, and an e-signature via Aadhaar OTP, complete the process.

Who can be nominated?

The scope for nominees is broad, encompassing family members such as parents, spouse, siblings, and children.

Moreover, even minors can be nominated, albeit with the provision of their guardian’s details.

Only individuals holding demat accounts singly or jointly can nominate. Non-individual entities like societies, trusts, corporations, partnership firms, Hindu Undivided Families, and holders of Power of Attorney cannot nominate.

Joint holders can nominate, but if one of them passes away, the securities will be transmitted to the surviving holders unless there is a nominee.

NRIs can nominate directly, but power of attorney holders cannot nominate on their behalf. Minors cannot nominate either directly or through a guardian.

Changing nominees

Investors can change the nominee(s) at any time by filling out a nomination form and submitting it to the Depository Participant (DP) or via the online process.

Consequences of missing the deadline

If investors miss the December 31 nomination deadline, SEBI may freeze debits from their holdings. This means they won’t be able to withdraw from mutual funds or use their demat accounts for trading.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI extends deadline to add nominees for demat account holders till December 31

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Capital markets regulator SEBI extended the deadline by three months to December-end for existing demat account holders to provide choice of nomination or formally opt out of nomination through a declaration form.

Additionally, submission of ’choice of nomination’ for trading accounts has been made voluntary by the regulator as a move towards ease of doing business.

Earlier, the deadline for existing eligible trading and demat account holders to provide a choice of nomination was on or before September 30.

The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.

”Based on the representations received from the exchanges, depositories, brokers’ associations and various other stakeholders, submission of ’choice of nomination’ for trading accounts has been made voluntary as a step towards ease of doing business.

”With respect to demat accounts, it has been decided to extend the last date for submission of ’choice of nomination’ to December 31, 2023,” SEBI said in a circular.

Further, SEBI has given time till December 31, for physical security holders for submission of PAN, nomination, contact details, bank account details and specimen signature for their corresponding folio numbers.

In July 2021, the Securities and Exchange Board of India (SEBI) asked all existing eligible trading and demat account holders to provide a choice of nomination on or before March 31, 2022. Later, this was extended by one more year till March 31, 2023 and again till September 30, 2023.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow