The number of registered investors has almost tripled between March 2020 and March 2024, with nearly 20% of Indian households now involved in financial markets.
This trend clearly shows two things: first, a rising interest among Indian citizens in investing and trading, and second, a wider geographical reach, as more individuals from Tier 2 and Tier 3 cities are entering the market.
It is only because of the advent of the Internet that the smaller towns and cities can now invest in the financial markets. The advancements in fintech and easy interface for investments have also driven the expansion of the retail investor base.
India has 28 states and 9 union territories. There are 19.43 crores of retail investors in the Indian Stock Market scene. Maharashtra has the highest number of Demat account holders, followed by Uttar Pradesh and Gujarat.
Karnataka saw the highest surge in the number of accounts opened in the last year followed by West Bengal which led each state to hold more than 1 crore demat accounts. As of now, almost 13.39% of the Indian population holds demat accounts.
Regionally, North India led the country as of October 2024, followed by West India, South India, and East India. The investor base has expanded rapidly, reaching 2 crore in 2016, doubling to 4 crore in 2021, and doubling again to 8 crore by 2023 in just over two years.
Open Demat Account and Start Trading!
Here is a detailed list of the Indian states and Union Territories and the number of demat accounts present in the respective states along with the increase in the number of retail investors over a month and a year.
|
State
|
Number of Retail Investors |
Increase in Retail Investors over 1 month |
Increase in Retail Investors over 1 year |
| Maharashtra |
35570007 |
1.74% |
5.77% |
| Uttar Pradesh |
21644675 |
2.79% |
6.53% |
| Gujarat |
18061587 |
2.97% |
8.58% |
| Rajasthan |
11772720 |
2.70% |
7.66% |
| West Bengal |
11063352 |
2.25% |
9.67% |
| Karnataka |
10347108 |
1.95% |
9.98% |
| Madhya Pradesh |
10204192 |
2.23% |
6.66% |
| Tamil Nadu |
9280851 |
2.00% |
5.95% |
| Delhi |
8676938 |
1.93% |
8.66% |
| Bihar |
7963815 |
2.91% |
8.14% |
Source: BSE
The surge in retail investors in India can be attributed to technological advancements, improved market infrastructure, and increased investor confidence. Let us understand these points further:
Technological Advancements: The rise of mobile trading apps, robo-advisors, and digital platforms has made stock market participation more accessible and convenient.
Retail investors can now open demat accounts, buy and sell stocks, and track their portfolios with just a few taps on their smartphones.
CDSL and NSDL have simplified the process through digital KYC. The ease of accessing information, research, and market insights has also empowered investors to make informed decisions.
Rise of Systematic Investment Plans: The popularity of SIPs has contributed to the retail investor boom. With SIPs crossing Rs 21,000 crore monthly, retail investors have found a disciplined way to invest small amounts regularly.
This long-term approach has made equity investment accessible to a broader audience and encouraged consistent participation.
Market Infrastructure & Investor Confidence: The market infrastructure, described as "the best in the world" by the CEO of the National Stock Exchange has built investor trust.
Improved corporate governance, better earnings visibility, and technological efficiency have also boosted retail investor confidence, further driving participation.
Conclusion
Investing was once considered the domain of wealthy, well-connected individuals. However, advancements in technology and financial products have democratised the process.
It has allowed millions of Indians from diverse backgrounds to participate in wealth-creating opportunities. Investors now have access to digital solutions like real-time market data, personalised investment advice, and online communities for knowledge sharing.
If India continues to grow at this rate, it will emerge as a superpower and one of the strongest nations.
Financial Calculators: SWP Calculator | EMI Calculator | SIP Calculator | Compound Interest Calculator | CAGR Calculator | Sukanya Samriddhi Yojana Calculator | Retirement Calculator | Mutual Fund Returns Calculator | EPF Calculator | Inflation Calculator
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price​​​​​​​