Sumary of Retail investors participation rises in securities mkt on low interest rate, ample liquidity: Sebi Chief:
- Ajay Tyagi, chairman, SEBI Retail investors’ interest in the Indian securities market has sharply increased to an average of 2.45 million Demat accounts opened per month during April-June, Sebi chief Ajay Tyagi said on Thursday.
- The prevailing low-interest rates and ample liquidity availability are the major factors for the increased investors’ interest in the securities market in India, he added.
- He warned that tightening of liquidity or an increase in interest rates would impact the market.
- “However, it also needs to be acknowledged that by their very nature, the markets are forward-looking and the present investments take into account the future growth prospects,” the Sebi chairman said.
- Speaking at NISM’s second annual capital markets conference, Tyagi said retail investors’ interest in the Indian securities market has increased from 2020-21 onwards.
- The cumulative number of total Demat accounts increased from 41 million at the beginning of FY21 to 55 million by the end of FY21, an increase of 34.7 per cent.
- Equity cash market turnover increased from Rs 96.6 lakh crore in 2019-20 to Rs 164.4 lakh crore in 2020-21, a rise of 70.2 per cent.
- Moreover, the share of individuals in turnover grew by around 5 percentage points to 51.4 per cent in 2020-21 over the previous fiscal.