MUMBAI, July 13: The markets may be in the dumps but retail investors are thronging the depository if the figures for the first half of July are any indication. The number of accounts opened, the real barometer of success of the National Securities Depository Ltd (NSDL), have swelled in the first 11 days of the month to cross the 40,000 mark.The value of shares dematerialised too is increasing significantly and is slated to touch $10 billion (Rs 42,000 crore) in the next week or so, said market sources.
An estimated Rs 39,000 crore worth of shares have already been dematerialised and another Rs 3,500 crore worth of shares are in various stages of dematerialisation.
The stunning growth has, however, come in the form of an increase in the number of accounts being opened by investors, mostly retail, as institutional investors have already opened their accounts long back.
In March, 1,497 fresh accounts were opened. The figure increased to 4,213 accounts in April, when SEBI allowed delivery of dematshares in the physical segment. Investors receiving demat delivery were hence required to open a depository account to be eligible to receive these shares.
In case they did not wish to accept demat shares they had the option of rematerialising the shares.
This option has, however, not been exercised by any investor to date, say depository officials, and the surge in accounts continues unabated.
In May, the number of accounts opened jumped by more than 100 per cent with 8,802 accounts being opened. June witnessed another 9,002 accounts being opened. The startling jump has, however, come in July, with 7,302 accounts being opened with the depository in the first 11 days itself.
The total number of accounts opened with the depository now stand at 40,557, and depository officials say that the 50,000 accounts mark might well be breached before the end of the current month itself.
SEBI has set a target of 50,000 accounts by August 15 this year to coincide with the 50th year of the country'sindependence.
The target of Rs 50,000 crore worth of shares being dematerialised looks attainable considering that about Rs 42,000 crore worth of shares would have been dematerialised by the end of this week itself.
"The growth of the depository is going to be weighed in terms of the number of investors who join it. The demat juggernaut is rolling now and the increasing number of accounts being opened even in a depressed market as this is a clear indication of this," said a depository source.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
