Demat Accounts Surge In FY26 As 235 Lakh Added
- Retail participation rises despite global uncertainty
- Economic Survey highlights equity, mutual fund growth
India’s capital markets recorded strong retail participation in FY26, with 235 lakh new demat accounts added up to December 2025. The Economic Survey 2025–26, tabled in Parliament on Thursday, reported the sharp rise and pointed to growing financial awareness among households. The data showed that domestic investors continued to play a key role even as global trade uncertainty and geopolitical tensions affected markets worldwide.
The Survey noted that the steady rise in demat accounts reflected confidence in Indian capital markets. It also highlighted the ability of domestic participation to support market stability during periods of volatility. Meanwhile, foreign investment flows remained uneven, yet equity markets showed resilience between April and December 2025.
Demat accounts growth supports equity market resilience
During the April to December 2025 period, the Nifty rose by around 11.1 per cent, while the Sensex gained nearly 10.1 per cent. According to the Economic Survey, strong domestic investor participation supported these gains. Improving corporate earnings also helped. In addition, policy measures such as tax relief, easing inflation, and accommodative monetary policy played an important role.
A key milestone came in September 2025 when the number of unique demat investors crossed 12 crore. The Survey stated that nearly one fourth of these investors were women. This trend showed a broadening investor base and rising inclusion in capital markets.
Economic Survey notes wider reach of demat accounts and funds
The growing investor base extended beyond major cities. The mutual fund industry recorded 5.9 crore unique investors by December 2025. Of these, 3.5 crore investors came from non tier I and tier II cities. Therefore, the Survey pointed to deeper market penetration across regions.
Household savings also showed a clear shift. The share of equity and mutual funds in annual household financial savings rose from 2 per cent in FY12 to over 15 per cent in FY25. This change was driven by higher SIP investments. Average monthly SIP contributions increased from under Rs 4,000 crore in FY17 to more than Rs 28,000 crore in FY26 so far.
Market activity also remained strong. IPO volumes were 20 per cent higher than last year, while funds raised increased by 10 per cent. SME listings continued to expand, with 217 companies listed so far this year, mobilising over Rs 9,600 crore. Meanwhile, the corporate bond market grew at an annual rate of around 12 per cent over the past decade. Outstanding corporate bond issuances reached Rs 53.6 trillion in FY25, with fresh issuances touching a record Rs 9.9 trillion.
Now you can get the latest stories from Indtoday on Telegram every day. Click the link to subscribe. Click to follow Indtoday’s Facebook page, Twitter, and Instagram. For all the latest Hyderabad News updates and Follow us on GoogleNews
