Selection of demat accounts personal higher than doubled since March 2019: Tyagi

Top brokerages personal been opening simply about a million demat accounts since then and practically 75 per cent of them are underneath-30 merchants

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demat accounts | Demat

What the markets and market-makers personal done within the previous two years is bigger than what they might perhaps perhaps well carry out for the interval of the previous two a protracted time, because the number demat accounts personal higher than doubled to 7.7 crore as of November 2021 from 3.6 crore in March 2019, Sebi Chairman Ajay Tyagi acknowledged on Wednesday.

Since the pandemic-pushed lockdowns and work develop dwelling custom began, hundreds and hundreds of kids personal entered the market as first time merchants, which modified into as soon as furthermore a interval when the benchmarks soared around 150 per cent for the explanation that coronavirus-introduced about atomize in March 2020.

Top brokerages personal been opening simply about a million demat accounts since then and practically 75 per cent of them are underneath-30 merchants.

“Primarily based completely on the world constructing, we too personal seen a most main find bigger within the sequence of person merchants having access to the capital markets. From a mean of 4 lakh original demat accounts opened every month in FY20, it tripled to 20 lakh per thirty days in 2021 and has extra increased to around 29 lakh per thirty days in November 2021, that is bigger than 7 events of the month-to-month life like the pre-COVID twelve months of FY20,” Tyagi acknowledged.

“Undoubtedly, the cumulative demat accounts which stood at 3.6 crore as on March 2019, had been 7.7 crore as of pause November 2021. So, essentially, what modified into as soon as done in over two a protracted time available within the market has been done within the final about two-and-a-half of years,” he added.

Tyagi modified into as soon as speaking at an event to personal an even time 25 years of the Nifty index and 20 years of derivatives trading within the country.

The Nifty 50 index modified into as soon as launched on April 22, 1996. The index, which represents the 50 wise and liquid stocks at some stage in 13 sectors, has grown 15 events within the previous 25 years, delivering annualised returns of 11.2 per cent, NSE chief govt Vikram Limaye acknowledged.

On this, the Sebi chief acknowledged a smartly-constructed index no longer simplest permits measuring the market performance, but furthermore serves as a portfolio for investment.

Such an index finds employ for a diversity of capabilities comparable to benchmarking funds, launching of index funds, exchange traded funds, underlying index for exchange traded derivatives and structured merchandise, he illustrious.

The Nifty constituents find 63.4 per cent of the free-waft market capitalisation and 32.5 per cent of turnover of all of the equity market, in response to the frequent recordsdata for June-November 2021, Tyagi acknowledged.

As of November 30, 2021, there personal been 16 exchange traded funds benchmarked to Nifty 50 with total sources underneath administration of higher than Rs 1.6 lakh crore, and 18 index funds tracking Nifty with and AUM of around Rs 16,000 crore, other than seven world ETFs with an AUM of over USD 1 billion, Tyagi acknowledged.

NSE is the world’s largest exchange in the case of equity derivatives since 2019. The Sebi chairman attributed this to the combination of accurate product make and prudent protection framework.

On the NSE, equity derivatives are readily accessible on three indices and 197 stocks, he acknowledged.

The Nifty 50 index along with Nifty financial institution index contracts are perchance the most traded index option contracts globally in response to sequence of contracts traded, Limaye acknowledged.

The exchange has been the largest derivatives exchange globally for two consecutive years in a row in 2019 and 2020.

Tyagi extra acknowledged the SGX-Nifty will rapidly be functional from the IFSC, leading to higher liquidity administration.

“With a watch to coalescing liquidity at one build, measures personal been taken by the authorities and regulator to incentivise trading of derivatives on Nifty at IFSC rapidly,” he acknowledged.

The Nifty 50 index modified into as soon as the most main underlying benchmark on which the most main exchange traded fund (ETF) modified into as soon as launched within the country. It modified into as soon as furthermore the most main index in NSE’s derivatives market.

NSE began trading in derivatives with the birth of index futures benchmarked to Nifty 50 on June 12, 2000 within the equity derivatives segment.

This modified into as soon as adopted by the introduction of trading in index suggestions (furthermore in response to Nifty 50) on June 4, 2001, suggestions on person securities from July 2, 2001 and futures on person securities from November 9, 2001, Limaye acknowledged.

(Only the headline and film of this legend will personal been transformed by the Commerce Usual workers; the comfort of the whine material is auto-generated from a syndicated feed.)

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