By January 20, 2025, the National Stock Exchange of India (NSE) will have surpassed 11 crore unique registered investors, marking a noteworthy milestone. Furthermore, over 21 crore accounts are now registered with the exchange overall.
The NSE has drawn one crore new investors in less than five months, greatly growing its investor base! This outstanding expansion is a result of an exciting rise in market participation over the preceding years. The median age of new investors is now 32, a decrease from 38 five years ago, with approximately 40% under the age of 30. Additionally, it’s terrific to see that one in four investors are women, highlighting the growing diversity in the markets.
Factors Contributing to Rapid Growth in Investor Registrations
Nearly every Indian region has seen an increase in investor registrations, with districts outside the top 100 participating. Notably, smaller towns and cities accounted for 47.6% of the most recent registrations, indicating that many people are becoming more confident in the stock market.
With about 1.8 crore registered investors, Maharashtra is in the lead, followed by Gujarat with about 98 lakh (9.8 million) and Uttar Pradesh with 1.2 crore. More than 36.6% of all investors are from these states.
Strong market performance, enhanced investor education, and better digital accessibility are reasons for the rise in registrations. In recent months, the number of new unique investor registrations per day has fluctuated between 47,000 and 73,000.
The digitization of financial services has made them much more accessible to potential investors. Due to digitisation, potential investors can now access financial services much more quickly. A wider audience has resulted from the ability of individuals to invest without the need for conventional intermediaries provided by online trading platforms and mobile applications. New investors now have a lower barrier to entry because of the simplification of the Know Your Customer (KYC) procedure. Faster account openings and greater participation from those who might have previously found the process difficult are the outcomes of this more effective strategy. New investors might have previously seen the procedure cumbersome.
