The India story seems to be spreading faster outside the country than within. On one hand, the number of India exchange traded funds based out of Europe and the US is rising, indicating that retail investors in those markets are keen for a slice of action in Asia’s third largest and second fastest growing economy.
Back home, a look into the regional spread of demat accounts reveals that twelve states account for about 70% of overall demat accounts in the country. Though India’s savings ratio at 40%, remains the second highest in the world (first being China), only 3.5% of total savings find their way into the stock market. Investments into direct equity would be in the range of 0.85% and 1.20% (of net savings), say experts. NSDL and CDSL, between themselves, claim to have have around 1.54 crore active demat accounts. NSDL recently crossed 1 crore demat accounts while CDSL has about 59 lakh accounts (as on August 24). As per NSDL data (CDSL not included), Maharashtra tops the demat account league tables by a wide margin with about 17 lakh accounts. Gujarat bags the second spot with 13 lakh accounts while Delhi and Tamil Nadu boasts of 7 lakh and 6 lakh demat accounts respectively. Going a bit deeper, Mumbai tops the list of districts with highest number of demat accounts at 9 lakh, closely followed by Delhi with 7 lakh accounts and Ahmedabad with 4 lakh accounts. Chennai, Pune, Hyderabad, Thane, Kolkata and Surat (in that order) are the other districts with most demat accounts. “The regional spread of demat accounts has remained more or less unchanged with only ‘top equity hubs’ gaining in size. While client addition has been happening moderately in threetier cities and rural India, the pace (at which accounts are being opened) is no match to traditional equity hubs,” said Vinay Agrawal, executive director, equities broking, Angel Broking. Market watchers, the number of demat accounts that remain frozen for lack of PAN is still substantial. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
