New demat account openings stood at the highest in May in comparison to the last nine months, claims a media report as of Thursday.
It added a broader market rally and record derivatives volumes contributed to the demat account openings surge. The recorded new demat accounts at the end of the month were 118.15 million, up 2.15 million or 32 per cent from April.
According to the depository data by Motilal Oswal Financial Services (MOFSL), this is the highest monthly increase since August, when new account additions went up by 73 per cent which is 2.55 million.
Central Depository Services (India) accounted for 86.16 million accounts, while National Securities Depository accounted for 31.99 million accounts respectively as of 31 May 2023, it added.
A demat account that is meant to hold shares and securities in an electronic format is mandatory in online trading like buying or selling shares or converting physical shares into electronic form. The recorded increase in demat opening is likely to boost the share market activities.