Demat accounts are growing faster than active investors — what does it mean for brokerages?
India’s demat account base is expanding faster than the pool of active market participants, signalling stronger investor interest but slower conversion into regular trading activity. In August, demat accounts rose 1.4% MoM to 237.7 million, while NSE active clients increased 1.1% to nearly 46 million, taking the active-account ratio to 19.3%.
- Sep 9, 2026,
- Updated Sep 9, 2026 3:35 AM IST
India’s retail capital-market base showed signs of renewed expansion in August, with demat accounts growing faster than active investors. While the divergence points to continued interest in market participation, it also highlights the challenge for brokerages of converting a rapidly expanding account base into regular, active clients.
Demat additions accelerate
According to a 360 ONE Capital Research report, the total number of demat accounts rose to 237.7 million in August 2026, marking a 1.4% month-on-month increase. Incremental additions stood at 3.3 million, up 13.2% sequentially and the highest monthly addition since January 2026. The report attributed the improvement to a recovery in market conditions.
The increase was led by CDSL, which reported 191 million demat accounts, up 1.5% MoM. Its incremental account run-rate rose 17.2% sequentially to 2.74 million, helping the depository increase its market share by 285 basis points to around 83.9%. NSDL, meanwhile, reported 46.7 million accounts, up 1.1% MoM, but its incremental run-rate declined 3.7% to 0.53 million.
Active participation grows more slowly
The expansion in demat accounts, however, has not translated into an equivalent increase in active clients. NSE active clients rose about 1.1% MoM to nearly 46 million in August, the first time in CY26 that the figure approached the 46-million mark. Yet active clients remained 0.5% lower than a year earlier.
As a result, the active client-to-total demat account ratio declined to 19.3% from the previous month, falling five basis points. The research firm attributed the decline to the faster growth in overall demat accounts.
For brokerages, the trend makes client activation increasingly important. A larger account base expands the potential customer pool, but sustained engagement will determine how much of that base translates into trading activity.
ALSO READ: Zerodha vs Groww debate: Are direct mutual funds always better, or is advice worth paying for?
Groww widens lead
The competitive landscape among brokers remained relatively stable, with the top three retaining their positions. Groww led with a 29% market share, gaining 16 bps MoM, followed by Zerodha at 14.8%, down 9 bps, and Angel One at 14.6%, broadly unchanged.
Angel One’s overall client base increased 1.36% MoM to 39.6 million, although its NSE activation rate remained flat at 17%.
The report expects improving market conditions to support further growth in new demat accounts as well as client activation for brokers.
Overall, August’s data suggests that India’s investor base is expanding again, but the next phase of growth may depend less on opening accounts and more on turning those accounts into active market participants.
DO READ: The next winner in India's wealth-tech race will need more than just low fees: Report
India’s retail capital-market base showed signs of renewed expansion in August, with demat accounts growing faster than active investors. While the divergence points to continued interest in market participation, it also highlights the challenge for brokerages of converting a rapidly expanding account base into regular, active clients.
Demat additions accelerate
According to a 360 ONE Capital Research report, the total number of demat accounts rose to 237.7 million in August 2026, marking a 1.4% month-on-month increase. Incremental additions stood at 3.3 million, up 13.2% sequentially and the highest monthly addition since January 2026. The report attributed the improvement to a recovery in market conditions.
The increase was led by CDSL, which reported 191 million demat accounts, up 1.5% MoM. Its incremental account run-rate rose 17.2% sequentially to 2.74 million, helping the depository increase its market share by 285 basis points to around 83.9%. NSDL, meanwhile, reported 46.7 million accounts, up 1.1% MoM, but its incremental run-rate declined 3.7% to 0.53 million.
Active participation grows more slowly
The expansion in demat accounts, however, has not translated into an equivalent increase in active clients. NSE active clients rose about 1.1% MoM to nearly 46 million in August, the first time in CY26 that the figure approached the 46-million mark. Yet active clients remained 0.5% lower than a year earlier.
As a result, the active client-to-total demat account ratio declined to 19.3% from the previous month, falling five basis points. The research firm attributed the decline to the faster growth in overall demat accounts.
For brokerages, the trend makes client activation increasingly important. A larger account base expands the potential customer pool, but sustained engagement will determine how much of that base translates into trading activity.
ALSO READ: Zerodha vs Groww debate: Are direct mutual funds always better, or is advice worth paying for?
Groww widens lead
The competitive landscape among brokers remained relatively stable, with the top three retaining their positions. Groww led with a 29% market share, gaining 16 bps MoM, followed by Zerodha at 14.8%, down 9 bps, and Angel One at 14.6%, broadly unchanged.
Angel One’s overall client base increased 1.36% MoM to 39.6 million, although its NSE activation rate remained flat at 17%.
The report expects improving market conditions to support further growth in new demat accounts as well as client activation for brokers.
Overall, August’s data suggests that India’s investor base is expanding again, but the next phase of growth may depend less on opening accounts and more on turning those accounts into active market participants.
DO READ: The next winner in India's wealth-tech race will need more than just low fees: Report