The evolution of the stock market and its trading process over the years has been magnificent. Whether it be the hundreds of depository participants and stockbrokers or the full-time investors, everyone has reaped the benefits of the overwhelming changes. After the efforts of over two decades of the NSDL (National Securities Depository Limited), traders are finally becoming familiar with the demat account’s meaning and usage. Every depository participant is stepping forward to explain the benefits, features, and importance of these accounts to facilitate online trade. However, people seemed very conflicted with the Demat Account meaning until 2020! The year brought the COVID-19 pandemic to the world, and things have been uncertain ever since.
The Demat Account Trends in 2020 have left numerous traders with neck-deep perks and benefits while rewarding the new ones. The NSDL and the CDSL (Central Depository Services Limited) have registered thousands of demat account applications within a month! People who never thought of investing in the stock market have tried their luck! Therefore, it becomes imperative to know the meaning of all these trends and know more about Demat Accounts. Let us have a look at the popular Demat Account meaning and trends in 2020!
The Demat account trends have been rising since the beginning of the year.
Demat Accounts 2020: Trends and Highlights
The market experts and analysts have been all praise-worthy about the way investors have responded to the stock market. There has been active participation and involvement of the budding traders who found the national lockdown period quite useful for watering their trading desires. Let us have a look at the trends that have made it to the highlights of many news journals and blogs.
1. The CDSL recorded and opened as many as 1.2 million new Demat Accounts in just two months (March 2020-April 2020). This record stands as one of its highest records within such a short period. Looks like people utilized their time during the lockdown by opening accounts only.
2. The NSDL has recently announced to has achieved 2 crore Demat Accounts under its regulations. The organization that left no stone unturned to popularise and establish the concept of Dematerialisation in the Indian market has had a happening time this financial year.
3. The NSDL did not disclose its data until recently, but now the estimation says it registered over 5 million new Demat Accounts in the past six to nine months. Thus, there are a lot of people who have understood the Demat Account meaning and its functions during the ongoing pandemic.
4. Several data suggest that there has also been a tremendous and seamless rise in the number of young investors and Demat Account holders in the market, including females. The Demat Account meaning is no longer a thing of the middle-aged and retired individuals.
5. The participation or involvement of the females has been around 20% reveals the data that hold Demat Account records. It is finally good to observe the active female investors in the market.
6. Apart from the leading DPs, the banks have also registered a growth in their number of Demat Account holders. Banks like ICICI have reported a nominal rise in the number of inquiries and applications they have received.
Response From The Investors
The response from the investors was also commendable as most of them stayed active in the stock. Although the NIFTY and SENSEX account for regular fluctuations, the traders seemed to hold onto their assets and look for the right opportunity. Most of the traders held their shares and did not surrender to the panic of the market.
1. The outbreak of the COVID-19 pandemic and the following measures of the government to combat it created a stir in the money market.
2. Thankfully, the investors and stock market traders who understand the Demat Account’s meaning and usage understand that there is no rush to sell the shares in the market until necessary.
3. New investors have entered the market even after the condition of the money market was not feasible. It has been a new experience for most of the market experts to observe such an intuitive response from the general people who know the Demat Account meaning.
4. Most of the traders have tried to comply with the uncertainty of the money market and also the falling rates of the SENSEX. This response is a new change in the usual behavioral pattern of the traders. Now, the people are also trying to learn about the Demat and trading accounts in an attempt to be a part of the stock market!
Most of the market experts were anticipating a fall in the market trends of Demat and Trading Accounts, given the rising fluctuations in the stock exchanges are likely to intimidate the investors. However, the new investors have shown commendable zeal and enthusiasm while believing in their decisions and choices! The competition between the leading Depository Participants has also been at its peak. The ones who have ended up with the best deals are undoubtedly celebrating!