Srinagar, Apr 25 (KNO): Investment into the stock market is gaining pace in Ladakh , which currently tops India for having maximum demat accounts.
A demat account is required to buy and sell securities on the Indian stock exchanges.
According to the BSE, Ladakh has topped the chart in client growth among states and union territories, surpassing all others with a remarkable surge in clientele numbers both on a quarterly and yearly basis. This unprecedented surge in investment activity signals a growing appetite for financial markets in the region.
As per news agency—Kashmir News Observer (KNO), as on April 22, Ladakh saw a staggering yearly increase of 375.77 per cent in the number of clients. BSE’s total client base for Ladakh now stands at 1,551. This is followed by Mizoram with 76.19 per cent rise year-on-year (Y-o-Y) with 11,022 clients added, and Lakshadweep with 57.81 per cent Y-o-Y rise, having added 885 clients.
In addition, Jammu and Kashmir has a total of 8,06,090 active demat accounts holders.
This represents a significant 50.34% increase over the past one-year period from April 8, 2023 to April 8, 2024, with 2,69,924 new demat accounts opened during this time.
Experts attribute the surge in demat accounts to a paradigm shift in the mindset and aspirations of the younger generation and the expanding middle class.
Due to the availability of online investment choices made possible by the use of digital technology, Tier II and Tier III cities are now generating demand in addition to metropolitan and major cities, they said.
“Traditionally, Indians keep their surplus cash in gold and bank accounts, the traditional ways of storing wealth. The opening of new demat accounts is primarily motivated by the stock market's appeal as an option due to the economy's development,” said Sayar Ahmad Bhat, an BSE expert.
“The strong growth of the stock market combined with growing awareness, ease of investing and almost zero cost of opening a demat account through a fintech platform has been one of the key drivers for the surge in the demat tally across India,” he added—(KNO)