Read on the application
The Central Depository Service on Wednesday said the number of demat accounts on its platform has crossed 10 crore. People’s inclination towards investing in stock market has increased. This is the reason why so many demat accounts are being opened, but a SEBI report is shocking. According to SEBI, the number of demat accounts in the country has reached a record level, but more than 75 percent of the total demat accounts are not active.
Let us tell you that Central Depository Services (India) Limited (CDSL) started operations in 1999 and provided facility of placement of securities, transactions and settlement of trades in stock exchange in electronic form. CDSL said in a statement that it has crossed another milestone and has over 10 crore demat accounts on its platform.
If you opened the account by mistake, it will be deactivated.
An account or active investor is considered to be one who enters into a transaction to buy or sell shares at least once a year. According to a SEBI report, the number of demat accounts in the country has reached a record high, but the number of active traders is declining.
Till last year, the number of active demat accounts in the country was around 3.5 crore, which has declined to 3.19 crore at the end of March 2023. At the same time, only 3.15 active accounts remained in August. That means more than 75 percent of the total demat accounts are not active.
In such cases it will be considered active
According to the new proposal, a demat account will be considered inactive if no shares are bought or sold for 12 months. However, if mutual fund SIP, rights issue etc. are applied for, the account will be considered active. Bonus, stock split etc. will not be admissible.