NSE investor base: The investor base in India witnessed an unprecedented surge, driven by the rapid advancement in digitisation, heightened investor awareness, enhanced financial inclusion, and robust market performance.

According to a statement released by the National Stock Exchange of India (NSE), the number of unique registered investors on its platform surpassed 9 crore as of February 29, 2024.

Additionally, the total number of client codes registered with the exchange reached a staggering 16.9 crore, encompassing all client registrations to date. Clients have the flexibility to register with multiple trading members.

The growth trajectory of unique investor registrations at NSE has displayed an accelerating trend over the past few years. The transition from 6 to 7 crore unique investors occurred within nine months, followed by the addition of the next crore investors in eight months, and remarkably, the jump from 8 to 9 crore took only five months.

The daily influx of new unique registrations has been noteworthy, averaging between approximately 47,000 in October 2023 to 78,000 in January this year. This surge in investor participation coincides with the impressive performance of the market, with the Nifty 50 yielding a return of 27 per cent and the Nifty 500 delivering a remarkable 38 per cent return from the beginning of FY24 until February 29, 2024.

Sriram Krishnan, Chief Business Development Officer at NSE, expressed encouragement at the rapid onboarding of the latest one crore new investors within the shortest span of five months.

He attributed the deepening participation in various exchange-traded financial instruments to factors such as the simplification of KYC processes, enhanced financial literacy through investor awareness programs, and sustained positive market sentiment over the long term.

Geographically, the surge in new investors has been widespread, with nearly 42 per cent hailing from North India, followed by West India (28 per cent), South India (17 per cent), and East India (13 per cent). Uttar Pradesh and Maharashtra emerged as major contributors, jointly accounting for more than a quarter of all new additions.

Presently, Maharashtra boasts the highest number of unique registered investors with 1.6 crore, followed by Uttar Pradesh with 97 lakh and Gujarat with 81 lakh such investors. The increase in new investors spans across states, with nearly all pin codes, barring 33, witnessing direct individual participation in the market.

The burgeoning investor base reflects a growing confidence in the Indian financial markets, underpinned by evolving regulatory frameworks, technological advancements, and concerted efforts to enhance financial literacy, ultimately driving inclusive growth and fostering a vibrant investment ecosystem in the country.

(With PTI inputs)