Demat accounts rise by 1.25% MoM to 234.4 million in July as incremental additions pick up: Report
New Delhi, August 14
July 2026 saw the number of demat accounts increase to 234.4 mn, registering 1.25 per cent month-on-month growth. According to a report by 360 ONE Capital, total incremental demat account additions during the month reached 2.9 million, marking a 12.1 per cent MoM rise, aided by a recovery in market conditions.
"We believe improving market conditions should support investor participation, driving further improvement in new demat account openings and aiding client activation for brokers," the report said.
Central Depository Services Limited (CDSL) registered 188.3 million demat accounts, reflecting a 1.3 per cent sequential growth. The incremental additions for CDSL stood at 2.3 million, up 11.6 per cent MoM. Although this run-rate trailed overall industry growth and lowered its incremental market share by 40 basis points to 81.0 per cent, it marked the depository's highest monthly addition in five months.
National Securities Depository Limited (NSDL) recorded 46.2 million demat accounts, up 1.2 per cent sequentially. Its incremental additions stood at 0.55 million, advancing 14.5 per cent MoM and outpacing industry expansion, which lifted its incremental market share to 19.0 per cent.
"The incremental run-rate for new demat accounts remains an encouraging trend for depositories; however, the average incremental run-rate remains below FY26 and FY25 levels," the report noted.
On the exchange front, active clients on the National Stock Exchange (NSE) remained broadly stable across the first seven months of CY26, hovering around 45.5 million after bottoming out at 44.8 million in December 2025. In July 2026, active clients witnessed a marginal decline of 1.8 per cent MoM and contracted 3.6 per cent year-on-year (YoY).
The active client-to-total demat account ratio dropped by 25 basis points sequentially to 19.4 per cent in June 2026 due to the faster expansion in overall demat accounts.
Meanwhile, the number of live companies registered with depositories reached 166,757 in July 2026, growing 1.19 per cent MoM. Live companies registered with CDSL increased 1.09 per cent sequentially to 50,228, while those with NSDL rose 1.24 per cent to 116,529 during the period.
Regarding broker trends, the report highlighted that "The top three discount brokers maintained their positions, with Groww continuing to gain market share sequentially, up ~270 bps over the past 12 months. While Angel One lost 66 bps of market share over the same period, it maintained its market share in July 2026."
— ANI
Reader Comments
Honestly, I opened my demat account just last month. With all the SIPs and mutual funds doing well, it felt like the right time to start. But I wish the brokers would focus more on financial literacy than just getting more clients. Too many people jump in without understanding the risks. 🙏
Interesting that CDSL's incremental market share dropped slightly. Groww is clearly dominating the discount broker space. But the real concern here is the active client ratio falling to 19.4% - means most accounts are just lying dormant. We need more genuine participation, not just account openings for the sake of it.
The 2.9 million new accounts in a month is massive! Even if some are just opening for IPO applications, it shows India's retail investing story is here to stay. The 360 ONE report is right - improving market conditions are driving this. Just hope the regulators keep an eye on broker practices so small investors don't get misled.
I've been in the markets for 20 years now. This demat surge is great, but I've seen this cycle before. When the bull run ends, these accounts will go inactive again. The 19.4% active ratio tells you everything - most people are just parking accounts for IPOs or occasional trading. Financial education is the real need, not just more accounts.
As someone who follows global markets, India's retail participation story is really impressive. The jump to 234 million demat accounts is phenomenal. Groww gaining 270 bps market share over 12 months shows the shift towards user-friendly platforms. Hopefully this trend sustains as India's economy grows. 🇮
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