The National Stock Exchange of India (NSE) announced a significant milestone on 20 January 2025, surpassing 11 crore unique registered investors, a testament to the burgeoning interest in India's capital markets.
The total number of accounts registered with the exchange stands above 21 crore (Includes all client registrations done till date; clients can register with more than one trading member). This surge in participation reflects a number of factors, including rapid digitization, heightened investor awareness, and a string of positive market performances.
The pace of investor registrations has accelerated dramatically in recent years, with the last 1 crore investors added in a mere five months, underscoring a growing confidence among the Indian public in the stock market as a trusted avenue for wealth creation. This trend is further evidenced by the consistent daily addition of 47,000 to 73,000 new unique investors in the past five months.
A major shift in investor demographics is also evident, with a younger investor base emerging. The median age of new investors has declined to around 32 years, with 40% of them under 30 years old. This demographic shift, coupled with a significant increase in female participation (one in four investors is now a woman), signifies a broadening and diversifying investor base.
The reach of the stock market has also expanded geographically, with investor registrations now present in all but 30 pin codes across India. Notably, 47.6% of the latest 1 crore investor registrations originated from districts beyond the top 100, indicating a growing participation from smaller towns and cities.
Currently, Maharashtra leads with 1.8 crore registered investors, followed by Uttar Pradesh at 1.2 crore, and Gujarat at 98 lakh, with these three states accounting for 36.6% of the 11 crore investors.
This surge in investor participation has been accompanied by a significant increase in indirect market participation, with nearly 3.7 crore new Systematic Investment Plan (SIP) accounts opened between July and December 2024. Average monthly SIP inflows during this period also witnessed a substantial increase, demonstrating a growing confidence in long-term market investments.
Sriram Krishnan, chief business development officer, NSE said: "This rapid growth, with over one crore new investors added in just five months since crossing the 10-crore mark in August, reflects rising confidence of the Indian public in the stock market as a trusted avenue for wealth creation. Factors such as enhanced digital accessibility, increased investor education, and government initiatives promoting financial inclusion have driven this surge. Additionally, a younger, tech-savvy population and growing awareness of the benefits of equity investments have further accelerated this trend. This milestone highlights a transformative shift in India’s investment landscape, empowering millions to actively participate in the nation’s economic growth and contributing to the deepening of the capital markets."