The National Stock Exchange of India (NSE) said the number of its unique registered investors crossed 8 crore. Total number of client codes registered with the exchange touched 14.9 crore as clients could register with more than one trading member.
The 8 crore unique PAN investors correspond approximately to around 5 crore unique households in India amounting to around 17% households directly investing in the Indian stock market via NSE’s extensive nationwide network of trading members, the stock exchange said in a release.
NSE registered 1 crore new investors on its platform in the last eight months. NSE said that 45% of the new 1 crore unique PAN based investor registrations came from beyond the top 100 cities.
States from Northern part of India accounted for 43% followed by West with 27%, South by 17% and East by 13% towards the last 1 crore new investor registrations.
The top cities include Delhi (including NCR) contributing to 7% followed by Mumbai (including Thane/Raigad) with 4.6% and Pune with 1.7%, NSE added.
NSE attributed the growth in number of participants to the momentum observed in capital markets.
“The benchmark equity index – the Nifty 50 index has delivered annualised returns of 22.66% in last 3 years and the Nifty 500 index has delivered annualised returns of 24.89% in last 3 years (all returns as on September 26, 2023) indicating the performance is long term, broad based and not restricted to few securities," NSE said.
The first 6 months of the current financial year has seen 76 lakhs of new investor registrations. Previously, the number of new investor registrations stood at 1.3 crore in FY23, 1.9 crore in FY22 and 0.90 crore in FY21.
“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," said Sriram Krishnan, Chief Business Development Officer, NSE .
Secondary market liquidity in some of the products has seen increased depth coupled with ease of entry & exit to the investors due to transition to T+1 settlement in the Capital Market Segment.
“The momentum in the capital markets, equity & 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,” Krishnan added.
Meanwhile, the daily average turnover of Exchange Traded Funds (ETFs) has increased close to 11 times from ₹46 crore in FY14 to ₹605 crore in FY23.
Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) observed daily average turnover of ₹83 crore in this financial year in the Capital Market Segment of the Exchange.
Government bonds listed in the Capital Market Segment of NSE also saw daily average turnover of ₹13 crore.
Overall turnover in the current financial year has witnessed growth of around 28% YoY in cash equity and 4% YoY in equity derivatives. The equity derivatives to equity cash ratio have been hovering around 2.5 in FY24 as compared to around 3 in FY23, the exchange said.
Source Link: NSE registered investor base surpasses 8 crore mark | Mint