In just eight months, the registered investor base of National Stock Exchange (NSE) increased by 10mn (million) to 80mn. NSE has 80mn investors with unique permanent account numbers (PANs) and 149mn unique client codes (UCC), the Exchange says in a release.
Sriram Krishnan, chief business development officer, NSE, says, "Technology has brought in ease of investor onboarding, made available self-paced learning modules to impart knowledge to the masses thereby enriching overall investing experience in financial products on the Exchange."
According to NSE, the recent one crore new unique PAN-based investor registrations (first-time registrations by a PAN) are not restricted to top-tier cities and cities beyond the top-100 accounting for 45% of new investor registrations. "States from the Northern part of India accounted for 43% followed by West with 27%, South by 17% and East by 13% towards the last one crore new investor registrations. The top cities include Delhi (including the national capital region- NCR) contributing to 7%, followed by Mumbai (including Thane and Raigad) with 4.6% and Pune with 1.7%."
The sheer growth in number of participants can be attributed to the momentum observed in capital markets, the Exchange says.
Over the past three years, NSE's benchmark Nifty 50 index, has delivered annualised returns of 22.66% and the Nifty 500 index has delivered annualised returns of 24.89% as of 26 September 2023) indicating the performance is long-term, broad-based and not restricted to few securities.
The first six months of the current financial year have seen 7.6mn of new investor registrations. Previously, new investor registrations stood at 13mn in FY22-23, 1.9mn in FY21-22 and 9mn in FY20-21.
According to the Exchange, the eight crore unique PAN investors correspond to about 50mn unique households in India, amounting to around 17% of households directly investing in the Indian stock market via NSE's extensive nationwide network of trading members.
The daily average turnover of exchange-traded funds (ETFs) has increased close to 11 times to Rs605 crore in FY22-23 from Rs46 crore in FY13-14. Introduction of ETFs on different new themes, ETFs on government securities, target maturity ETFs and silver ETFs have also provided investors with a broader array of ETFs to choose from, NSE says.
Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), which provide investors on the Exchange to seek exposure to real estate and infrastructure assets, have observed daily average turnover of Rs83 crore in this financial year in the capital market segment of the Exchange.
Government bonds listed in the capital market segment of NSE also see a daily average turnover of Rs13 crore, including state development loans and treasury bills in addition to the long-dated securities. Holding the bonds in a demat account along with other securities has provided convenience to the investors. Sovereign gold bonds also see a daily average turnover of Rs8 crore on the exchange platform.
Overall turnover of NSE during the current financial year has witnessed growth of around 28% in cash equity and 4% in equity derivatives. The equity derivatives to equity cash ratio has been hovering around 2.5 in FY23-24 as compared to around 3 in FY22-23, NSE added.