In India, as far as equity investment is concerned, we are long way to go.....our population is already 100+ Cr, with approx 30Cr mobile users, around 16Cr bank account holders, 5Cr broadband users & similar number of homes with cable TV, why only 1.43Cr demat account holders?
Although growth in this numbers are showing bright future and confidence of investors in equity. In 2006, total number of demat account were just 54 lakhs, where in 2007 it was around 1Cr which is 100% rise from 2006-07. In 2008, it is 1.43Cr which is 40% increase inspite of downturn in the market. Equity market is a gold mine and the early you realize it is better!!!
The equity markets might have fallen substantially from peak levels, but that hasn't quite eroded Indian investors' enthusiasm for equities. Or, so the growing number of demat accounts would have us believe.
As per the National Securities Depository Ltd and Central Depository Services Ltd, in 2008, the total number of active and verified (with PAN details) demat accounts increased by around 44% year on year to over 143.34 lakh. The two depositories split the increment almost equally.
A demat account makes it possible for investors to hold their shares in the electronic or dematerialised form. But, brokers aren't exactly surprised by the rise in numbers.
The Reliance Power IPO, which opened on January 15, had garnered huge investor response and was oversubscribed within minutes of opening. But, the very next day saw a global market meltdown and by the month end, the market had closed at 17,600; way below the 21,000 peak it touched just a few weeks ago.
But even excluding January, which saw the market touch its peak, investor interest was strong in 2008, with total active demat accounts with PAN card details available up 26.86%. By January-end, 2008, there were 113.93 lakh active and verified demat accounts. One year later, on January 31, 2009, the figure had risen to 144.54 lakh.
- JK, Associate, HBJ Capital
0 comments:
Post a Comment