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CDSL becomes first depository to register more than 60 million Demat accounts

On the 1st of March, 2022, the Central Depository Services (India) announced that it now has more than six crores (i. e. equivalent to 60 million) active Demat accounts. A Demat account is a kind of account that can be used to keep online copies of securities and shares. A Demat account is a dematerialized account in its entire form. The main purpose of a Demat account is to keep shares that have been bought or dematerialized (that means conversion from physical to electronic form of shares), making online share trading easier for users.

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KEY POINTS:

  • The sole listed depository in India is Central Depository Services (India) Limited (CDSL).
  • Ananta Barua, Whole Time Member, Securities and Exchange Board of India, said at a ceremony to commemorate the achievement that Dematerialisation has arose as a result of the issues that physical shares had with them.
  • Barua also said that the new milestone demonstrates that access to the Indian securities market has become safe, convenient, and simple.
  • Furthermore, Barua stated that new investors must be educated about the Indian securities market, the role of market infrastructure organisations, and investor protection in order to make well-informed judgments.

The reaction of B. V. Chaubal (Chairman of CDSL):                          

B.V. Chaubal issued two statetments:

  • While we now have 6 crore demat accounts, we still only have a proportion of the population’s demat accounts, so there is a huge scope for growth given that a major portion of our country’s population is still outside the Indian securities markets.
  • It’s encouraging to see that the focus of new demat account registration is changing from metros to tier II and tier III locations, indicating the Indian Capital Market’s expanding.
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