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India’s demat growth outpaces active trading as retail steps back
The share of active demat clients fell to 19.1% in the three months through June of fiscal 2027, despite total demat accounts rising to 23.2 crore.
Indian brokerage clients are becoming less active even as demat account openings continue to rise, according to an analysis by LiveMint based on National Stock Exchange and Securities and Exchange Board of India data.
The outlet said active clients, defined as investors or traders who executed at least one transaction in the past 12 months, accounted for 26.3% of India’s demat accounts in FY24. That active-client ratio dropped to 19.1% in the three months through June of fiscal 2027, even as the total number of demat accounts climbed to 23.2 crore.
LiveMint reported that in fiscal 2026 the active client ratio fell by 5.22 percentage points year over year, to 20.1%, with the decline continuing into the first three months of fiscal 2027. It also noted that the slowdown was concentrated in newer accounts opened during the post-pandemic boom, which were often used for short-term goals like IPO applications or quick trading gains.
Brokerages cited a mix of weaker market returns, tighter Sebi derivative curbs, and geopolitical tensions that increased caution among retail investors. LiveMint quoted HDFC Securities CEO Dhiraj Relli, who said a lack of large IPOs and the impact of IPO listing losses and heavy derivatives losses helped shift many traders to a wait-and-watch stance.