National Stock Exchange of India (NSE), the country's leading domestic bourses, saw more than 1.2 crore new investor registrations in the last five years, growing at a compounded annual growth rate of 11%.
In 2019, the exchange added close to 30 lakh clients, registering a growth of 4.5% over the previous year, NSE said in a press release. With this, NSE also crossed the milestone of three crore registered investors in January 2020.
Commenting on the landmark, Vikram Limaye, MD & CEO, NSE said, "It is heartening to see that a large number of investors are showing an interest in participating in the equity markets. The milestone achieved is the culmination of efforts put in by all stakeholders with simplified client onboarding processes set up by SEBI and untiring efforts by NSE and its trading members."
"It is a positive sign for the country's economy that the household savings are being channelised into markets thereby aiding the capital formation process. I am sure with the focused efforts of all stakeholders, we should be looking at touching the 5 crore investor mark over the next 3 years," Limaye added.
According to NSE, the growth in investor registrations was largely driven from non-metro cities. The cities beyond the top 100 accounted for 33.7% of new investor registrations, while the cities beyond the top 50, contributed to 48%, indicating growing interest in the equity markets, is not restricted to the metros and a few tier 1 cities.
Western India accounted for 33% of new investor registrations closely followed by North India with 32%. Southern and Eastern regions in India accounted for 25% and 10% of new investor registrations respectively.
The top 10 states accounted for 75% of new investor registrations - Maharashtra 18.3%, Gujarat 9.9%, Uttar Pradesh 7.7%, Delhi 7.3%, Tamil Nadu 6.6%, Karnataka 6.2%, Rajasthan 5.3%, West Bengal 4.9%, Telangana 4.8% and Andhra Pradesh 4.7%.
The top 10 cities accounting for 29.5% of new investor registrations are - Mumbai (including Thane and Raigad) 7.7%, Delhi (including NCR) 7.4%, Bengaluru 2.7%, Pune 2.6%, Ahmedabad 2.3%, Surat 1.7%, Hyderabad 1.5%, Jaipur 1.4%, K.V. Rangareddy 1.2% and Kolkata 1.0%.
By Chitranjan Kumar