New demat account additions slowed by 11.5% in September 2026 to 2.89 million, moderating after a strong August, according to depository data reported by Business Standard on 7 October. The slowdown ended a five-month run of rising monthly additions that began after March.
The total number of demat accounts rose to 240.6 million. Quarterly additions, however, were the highest since the October to December quarter of 2024.
September demat account additions at a glance
The figures come from the two depositories, NSDL and CDSL. Monthly additions in September were similar to those in July, while the year-on-year comparison remained positive.
| Measure | Figure |
|---|---|
| New accounts, September 2026 | 2.89 million (down 11.5% from August) |
| New accounts, August 2026 | 3.27 million (highest in seven months) |
| New accounts, September 2025 | 2.46 million (September 2026 is up 17.6%) |
| Total demat accounts | 240.6 million (up 16.2% year on year) |
| Peak monthly additions | 4.79 million in September 2024 |
| Lowest monthly additions in the past year | 2.15 million in March 2026 |
How the monthly numbers moved
August 2026 was the strongest month in seven months, with 3.27 million accounts opened. Only January, at 3.72 million, had been higher. September’s 2.89 million is a step down from that level but well above the 2.15 million recorded in March, which was the lowest in a year.
Compared with a year ago, additions are up 17.6% from the 2.46 million accounts opened in September 2025. They remain well below the all-time monthly peak of 4.79 million set in September 2024.
Quarterly additions reach a near two-year high
For the July to September quarter, 9.04 million accounts were added. That is 28.6% more than the 7.03 million added in April to June and 14.2% more than the 7.92 million added a year earlier.
| Quarter | New demat accounts (million) |
|---|---|
| October to December 2024 | 9.88 |
| July to September 2025 | 7.92 |
| April to June 2026 | 7.03 |
| July to September 2026 | 9.04 |
The July to September 2026 tally is the highest quarterly figure since October to December 2024.
CDSL and NSDL share of new accounts
CDSL continued to account for the bulk of the additions. It added 2.41 million accounts in September, against 0.48 million at NSDL, and now holds 193.4 million accounts, or about 80% of the total base.
The two figures add up to the 2.89 million new accounts for the month, so almost every account opened in September went to one of these two depositories.
The IPO link behind the account growth
Business Standard linked the demat additions to heavy activity in the primary market. A total of 69 IPOs raised a record ₹90,462 crore in the quarter ended September.
Average listing gains were around 20% per issue in that quarter, compared with about 2% between January and June. Newly listed shares continued to draw interest this week, with several 2026 listings gaining more than 10% on Wednesday, according to NSE data cited in the same report.
G Chokkalingam, founder of Equinomics Research, said that about 7 lakh new investors enter the capital markets for the first time every week on average. He noted that monthly additions fluctuate but stay above 2 million, and described the growth in the demat base as a structural change that will continue for years.
What a demat account is used for
A demat account holds shares, bonds, exchange traded funds and other securities in electronic form instead of paper certificates. Shares bought in the market or allotted in an IPO are credited to it, which is why account additions tend to move with market and IPO activity.
The five-month rise that ended in September started after the March low of 2.15 million and carried the monthly figure to 3.27 million in August. September’s dip should be read against that run, since it still leaves the month 17.6% above the same month a year ago.
What the data means for investors
The depository numbers show how many accounts are being opened, not how many investors are active, so they are best read as a measure of entry into the market:
- The base keeps expanding: At 240.6 million accounts, the demat base is 16.2% larger than a year ago.
- Monthly numbers swing: September’s fall follows August’s seven-month high, and the series has ranged from 2.15 million to 3.72 million in 2026 so far.
- Primary market activity matters: IPO listings tend to coincide with higher account openings, and the July to September quarter had both.
- Account setup is the first step: demat account opening requires identity and address documents and KYC, after which investors can place orders and apply for IPOs.
Many new investors then use a share market app from their broker to track listings, place orders and monitor holdings. Choosing between brokers is a personal decision that depends on factors such as charges, tools and service.
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