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

On the 1^st 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.