NSE achieves milestone with over 8 crore unique investors and 14.9 crore unique client code accounts

The future looks promising, and with each passing day, India's investors are writing a new chapter in the story of their nation's economic growth

It is evident that National Stock Exchange (NSE) has become a thriving ecosystem, a gateway to prosperity for millions of households. With over 8 crore unique PAN-based investors, a staggering 17 per cent of Indian households are now direct participants in the stock market's dynamic dance.

The participation of investors vividly embodies the vision set forth by Amrit Kaal, a vision that envisages a prosperous and inclusive India where the benefits of development permeate every corner of the nation. The recent addition of 1 crore new investors, each uniquely identified by their PAN numbers, is not confined to the major metropolises alone. In fact, a significant 45 per cent of these new investor registrations originate from cities outside the top 100.

When we delve into the geographical distribution of these new investors, it becomes evident that states in the Northern region of India take the lead, contributing 43 per cent of the total, closely followed by the Western states at 27 per cent. The Southern region chimes in with 17 per cent, and the Eastern part of the country contributes 13 per cent to this remarkable surge in registrations.

While the top-tier cities of Delhi, Mumbai and Pune do play a role in this growth, their combined contribution stands at 13.3 per cent. This emphasizes that the broader trend of investor engagement extends well beyond these urban hubs, reaching into the heartlands and smaller towns across India.

The surge in investor registrations, notably 76 lakh in the first half of the current financial year, is a resounding vote of confidence in India's economic potential. With innovative products like Exchange Traded Funds (ETFs) and avenues such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), investors now have an array of options to diversify their portfolios.

Furthermore, the transition to T+1 settlement in the capital market segment has enhanced liquidity and accessibility, making the exchange route more attractive than ever. The numbers speak for themselves, with ETF turnover skyrocketing and daily averages for government bonds, sovereign gold bonds, REITs, and InvITs painting a picture of a thriving market.

Shri Sriram Krishnan, Chief Business Development Officer, NSE said, "The vision outlined for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector. Technology has brought in ease of investor onboarding, made available self-paced learning modules to impart knowledge to the masses thereby enriching overall investing experience in financial products on the exchange. The momentum in the capital markets, equity and debt, had a positive bearing on fund mobilisation in primary markets and deepening liquidity in the secondary markets. We expect the increased contribution of the domestic investors would help in long term growth of our economy.”

There has been an approximately 28 per cent year-over-year increase in the total turnover of cash equity, along with a modest 4 per cent year-over-year growth in equity derivatives. Notably, the ratio of equity derivatives to cash equity has remained relatively stable, hovering at approximately 2.5 in FY24, in contrast to the previous fiscal year, where it stood at around 3., it underscores the maturity and depth of India's financial markets. The future looks promising, and with each passing day, India's investors are writing a new chapter in the story of their nation's economic growth.