New Delhi: Securities and Alternate Board of India (Sebi) Chairman Ajay Tyagi has stated the quantity demat accounts have greater than doubled to 7.7 crore as of November 2021 from 3.6 crore in March 2019.
Quoting Tyagi, PTI stated that what the markets and market-makers have achieved previously two years is greater than what they might do in the course of the previous twenty years.
In accordance with the report, the Sebi chief stated because the pandemic-driven lockdowns and work at home started, thousands and thousands of younger individuals have entered the market as first time traders, which was additionally a interval when the benchmarks soared round 150 per cent because the coronavirus-triggered crash in March 2020.
Prime brokerages have been opening practically 1,000,000 demat accounts since then and nearly 75 per cent of them are under-30 traders.
“Consistent with the worldwide pattern, we too have seen a big enhance within the variety of particular person traders accessing the capital markets. From a median of 4 lakh new demat accounts opened each month in FY20, it tripled to twenty lakh per 30 days in 2021 and has additional elevated to round 29 lakh per 30 days in November 2021, that’s greater than 7 instances of the month-to-month common the pre-Covid yr of FY20,” Tyagi stated.
“The truth is, the cumulative demat accounts which stood at 3.6 crore as on March 2019, have been 7.7 crore as of finish November 2021. So, the truth is, what was achieved in over twenty years available in the market has been achieved within the final about two-and-a-half years,” he added.
Tyagi was talking at an occasion to rejoice 25 years of the Nifty index and 20 years of derivatives buying and selling within the nation.
The Nifty 50 index was launched on April 22, 1996. The index, which represents the 50 massive and liquid shares throughout 13 sectors, has grown 15 instances previously 25 years, delivering annualised returns of 11.2 per cent, NSE Chief Govt Vikram Limaye stated.
On this, the Sebi chief stated a well-constructed index not solely permits measuring the market efficiency, but additionally serves as a portfolio for funding.
Such an index finds use for a wide range of functions equivalent to benchmarking funds, launching of index funds, trade traded funds, underlying index for trade traded derivatives and structured merchandise, he famous.
The Nifty constituents seize 63.4 per cent of the free-float market capitalisation and 32.5 per cent of turnover of the whole fairness market, based mostly on the typical information for June-November 2021, Tyagi stated.
As of November 30, 2021, there have been 16 trade traded funds benchmarked to Nifty 50 with complete belongings beneath administration of greater than Rs 1.6 lakh crore, and 18 index funds monitoring Nifty with and AUM of round Rs 16,000 crore, other than seven worldwide ETFs with an AUM of over $1 billion, Tyagi stated.
NSE is the world’s largest trade in relation to fairness derivatives since 2019. The Sebi chairman attributed this to the mix of excellent product design and prudent coverage framework.
On the NSE, fairness derivatives can be found on three indices and 197 shares, he stated.
The Nifty 50 index together with Nifty financial institution index contracts are probably the most traded index choice contracts globally based mostly on variety of contracts traded, Limaye stated.
The trade has been the most important derivatives trade globally for 2 consecutive years in a row in 2019 and 2020.
Tyagi additional stated the SGX-Nifty will quickly be purposeful from the IFSC, main to higher liquidity administration.
“With a view to coalescing liquidity at one place, measures have been taken by the federal government and regulator to incentivise buying and selling of derivatives on Nifty at IFSC shortly,” he stated.
The Nifty 50 index was the primary underlying benchmark on which the primary trade traded fund (ETF) was launched within the nation. It was additionally the primary index in NSE’s derivatives market.
NSE started buying and selling in derivatives with the launch of index futures benchmarked to Nifty 50 on June 12, 2000 within the fairness derivatives phase.
This was adopted by the introduction of buying and selling in index choices (additionally based mostly on Nifty 50) on June 4, 2001, choices on particular person securities from July 2, 2001 and futures on particular person securities from November 9, 2001, Limaye stated.