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    Active stock traders less than expected, says Zerodha CEO Nithin Kamath citing RBI report

    Synopsis

    “Monthly active users (MAU) on Indian capital markets from the 2022 RBI financial stability report. This is the first time I am seeing this data in public. MAUs <1 crore across India, much lesser than what most people expect. My guess is the dip will be a lot more by the end of June,” Kamath, who runs India’s largest stock broking house, tweeted.

    Zerodha CEO Nithin Kamath
    NEW DELHI: Although the number of retail investors on Dalal Street are increasing with every passing month, the latest data from the Reserve Bank of India shows a dip in the number of active traders in both stock exchanges - BSE and NSE. Zerodha CEO Nithin Kamath said the number of monthly active users in the Indian stock market is less than one crore, much less than what most people expected it to be.

    “Monthly active users (MAU) on Indian capital markets from the 2022 RBI financial stability report. This is the first time I am seeing this data in public. MAUs <1 crore across India, much lesser than what most people expect. My guess is the dip will be a lot more by the end of June,” Kamath, who runs India’s largest stock broking house, tweeted.


    The RBI report pointed out that from January 2020 to May 2022, the number of Demat accounts of individuals has increased by 3.4 times in the Central Depository Services Limited (CDSL) and by 1.5 times in the National Securities Depository Limited (NSDL).

    Individual investors’ participation in stock exchanges has increased significantly since the onset of the COVID-19 pandemic and registration of new investors on exchanges is reaching beyond metropolitan centres and big cities, it said.

    Earlier last month, Kamath had said that although India has 9 crore demats, they aren't unique. “The unique count is ~6 crore. But active demats with holdings above Rs 10k are less than 3 crore. This is in line with the ~3.4 crore unique MF investors—despite the MF Sahi hai and other campaigns,” he had said.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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