India's demat account landscape has reached a new milestone, crossing the 20 crore mark, fueled by a significant surge in investor sign-ups, particularly among young individuals under the age of 30. These young investors constitute approximately 75% of new account openings, highlighting their growing participation in the Indian stock market. While the pace of growth has slowed in 2025 compared to the previous year, the increase is also attributed to investors holding multiple accounts.
The total number of demat accounts in India has been increasing rapidly since the COVID-19 pandemic. As of March 2020, the total number of demat accounts was a mere 4.1 crore. Since then, the number has surged, more than quadrupling in the last five years. In 2024 alone, the number of demat accounts increased by around 46 million, representing an average increase of 3.8 million accounts per month. This surge is due to several factors, including the easy account opening process, increasing smartphone use, and favorable market returns.
The rise of discount brokers has also played a significant role in this growth. These brokers, through their digital offerings, are enabling rising awareness and adoption of equity in lower-tier towns and cities. Discount brokers are changing the paradigm, making it easier for young investors to access the stock market.
This influx of younger investors is reflected in the declining mean/median age of investors and the increasing share of individuals under 30. Technological advancements, lower trading costs, and increased access to information have further driven this trend. Millennials, typically aged between 23 and 40, are more willing to take calculated risks for the potential of higher returns. They are also setting aside a significant portion of their income to invest in stocks.
The growth in demat accounts and active clients on the National Stock Exchange (NSE) indicates a growing interest in stock market participation among Indian investors. The NSE crossed the milestone of 20 crore client accounts in October 2024. As of June 30, 2025, the number of active clients, defined as those who trade with their broker at least once a year, was at 4.8 crore.
However, despite the rapid growth in demat accounts, penetration in India remains low compared to global standards. Demat account penetration in India stands at just 12%, far behind the 62% penetration in the United States.
The increasing share of mutual funds in financial savings has made them the most preferred instrument for financialization of savings. Systematic Investment Plan (SIP) registrations have increased significantly, leading to a substantial increase in total SIP contributions. Retail investors now make up nearly half of all trades in the stock market's cash segment, up from one-third in FY19. Even in the futures and options (F&O) segment, their footprint has more than doubled.
While Maharashtra leads in absolute investor numbers, Gujarat's entrepreneurial spirit and Tamil Nadu's digital edge are rapidly narrowing the gap. New demat accounts in Uttar Pradesh and Bihar have also seen significant growth, outpacing the national average. This indicates a grassroots movement in Indian finance, with the middle class increasingly turning to equities.
