The pace of new demat account additions continued to decelerate through the first nine months of 2025, reflecting muted investor sentiment amid volatile markets and weak returns from initial public offerings (IPOs).
According to data from the depositories, total new demat account openings between January and September 2025 stood at 2.18 crore, a sharp 39.8 percent decline from 3.62 crore during the same period in 2024.
In September 2025, around 2.46 million new accounts were opened—the lowest monthly tally since May—compared to 2.49 million in August and 2.98 million in July. This marked the second consecutive month of decline in fresh account registrations.
As of September, NSDL had 4.19 crore total demat accounts, while CDSL accounted for 16.52 crore, bringing the combined total to 20.71 crore demat accounts across the country.
Analysts attribute the slowdown to heightened market volatility, geopolitical tensions, sustained foreign investor outflows, and stretched valuations in the equity market. Although IPO fundraising has remained active, several listings have delivered muted or negative returns, dampening retail investor enthusiasm for new account openings.
Indian equities have underperformed global peers so far in 2025. In us $ terms, the Sensex and Nifty have gained only 1.8 percent and 2.5 percent, respectively.
In contrast, major global indices have surged — the S&P 500 rose 14 percent, Dow Jones 10 percent, Nasdaq 19 percent, FTSE 100 24 percent, CAC 40 22 percent, DAX 38 percent, Nikkei 25 percent, Hang Seng 34 percent, CSI 300 21 percent, Kospi 55 percent, and Jakarta Composite 13 percent.
Experts warn that without a revival in investor confidence and stronger IPO debuts, the sluggish pace of new demat account additions may continue.
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