Stock Market Disillusionment: New Demat Accounts Plummet 33% Amid Volatility

• New demat account openings dropped by 33% in 2025, a significant decline after consistent growth post-COVID.
• Only 3.063 crore demat accounts were opened in 2025, 1.5 crore fewer than the 4.6 crore in 2024.
• Increased market volatility, global tensions, and perceived higher risk in mid-cap and small-cap segments deterred new investors.
• Experts attribute the decline to heightened market risk, geopolitical tensions, and continuous withdrawal by foreign investors.
• Despite the slowdown in new accounts, the total number of demat accounts in India surpassed 21 crore by 2025.

Why It Matters: New demat account openings fell sharply by 33% in 2025 due to market volatility and risk aversion.