DEMAT ACCOUNT HOLDERS STRENGTH LIKELY TO BE 25 MILLION BY 2015 : SMC GLOBAL
Even as perception persists that capital market will remain range bound for next couple of months due to on-going internal and external economic uncertainties yet SMC Global Securities Ltd has predicted that Demat account holders number in India is likely to rise to about 25 million by 2015 from estimated level of 10 million as of now.
This is emerging following intensely growing desire in young and middle aged self reliant including employees to take part in capital market transactions to not only multiply their wealth faster and quicker but also help them stand and insure shocks of possible employment loss since sustainability in modern employment , especially outside state owned set-up has begun to be challenged frequently and with virtually no provocation , feels the company .
SMC Global Securities Ltd is also of the view that since 60 per cent of India’s population being below 35 years of age is a favorable demographic dynamism , especially when average age for earning is beginning at 22 to 23 against 26 to 27 earlier and is a responsible factor to driving youths towards capital market due to which latest addition of new De-mat accounts in India is at the rate of 2.25 lakh per month against less than 2 lakh previously .
Surprisingly, it may also be pointed out that the total users in social networking sites such as Facebook, Orkut and Twitter etc are estimated at the rate of 4.5 crore annually but that will still take a little longer to translate into the growth of De-mat accounts .
SMC Global Securities Ltd and similar other entities are beginning to observe a new enthusiasm among young and relatively middle aged employees including self employed personnel of both private and government set up to take part in equity and mutual fund transactions by opening up new De-mat accounts to park their savings, possibly to accrue higher gains that the capital market often provides for as compared to traditional channels of investments, says Chairman and Managing Director of SMC Global Securities Ltd Mr Subhash C Aggarwal .
This new trend has emerged recently as this lot is advised at home too by their guardians and mentors to shed their inherited inhibitions against risks and become integral part of trading activities in capital market with an expert advice and earn much more and faster with their savings as jobs are no longer deemed to be secure and permanent due to emerging realities of economic integration in which scale of boundaries are disappearing and competence only enduring employment, added Mr Aggarwal .
According to research conducted under aegis of SMC Global Securities Ltd, it is discovered that a new equity culture is beginning to evolve in India in which the contributions of young employees needs to be recognized in the sense that their risk appetite is increasing which is evident from the fact that young employees are proactively going in for De-mat accounts and seeking advice to buying prospective and lucrative equities . If for example more than 2 million new De-mat accounts are opened up in a year, the number of younger and middle aged employees including self reliant has grown close to 40 to 45 per cent in them and their percentage will continue to grow in near future to keep pace with popular social networking sites as mentioned above.
Mr Aggarwal further pointed out that as of now, there are 240 million people that have bank account and 100 million with insurance policies. 10 million people have De-mat account of which the top10 brokers have seven million accounts provided overlaps are excluded.
So there is huge scope for this to grow as is in banking . If 240 million people with bank accounts are projected to grow at 500 million in next few years with focus on financial inclusion, similarly, number of 10 million De-mat account holders should hit 25 million by end of 2015 as projected by SMC Global Securities Ltd and valid reasons have already assigned for it, concluded Mr Aggarwal.
