National Stock Exchange of India Ltd (NSE) witnessed more than 1.2 crore new investor registrations in the last 5 years, growing at a compounded annual growth rate of 11%. In 2019 alone, the Exchange on-boarded close to 30 lakh clients, up 4.5%, over the previous year.
NSE also crossed the milestone of three crore registered investors in January 2020.
Mr Vikram Limaye, MD & CEO, NSE said, “It is heartening to see that a large number of investors are showing an interest in participating in the equity markets. The milestone achieved is the culmination of efforts put in by all stakeholders with simplified client onboarding processes set up by SEBI and untiring efforts by NSE and its trading members. It is a positive sign for the country’s economy that the household savings are being channelized into markets thereby aiding the capital formation process. I am sure with the focused efforts of all stakeholders, we should be looking at touching the 5 crore investor mark over the next 3 years."
The growth in investor registrations has largely been driven from non-metro cities. The cities beyond the top 100 accounted for 33.7% of new investor registrations, while the cities beyond the top 50, contributed to 48%, indicating growing interest in the equity markets, is not restricted to the metros and a few tier 1 cities.
NSE has conducted more than 10,000 investor awareness programs in the last 3 years, touching more than 5.25 lakh individuals across the country with more than 75% of the programs conducted in non-tier 1 cities.
Western India accounted for 33% of new investor registrations closely followed by North India with 32%. Southern and Eastern regions in India accounted for 25% and 10% of new investor registrations respectively.
The top 10 states accounted for 75% of new investor registrations – Maharashtra 18.3%, Gujarat 9.9%, Uttar Pradesh 7.7%, Delhi 7.3%, Tamil Nadu 6.6%, Karnataka 6.2%, Rajasthan 5.3%, West Bengal 4.9%, Telangana 4.8% and Andhra Pradesh 4.7%.
The top 10 cities accounting for 29.5% of new investor registrations are – Mumbai (including Thane and Raigad) 7.7%, Delhi (including NCR) 7.4%, Bengaluru 2.7%, Pune 2.6%, Ahmedabad 2.3%, Surat 1.7%, Hyderabad 1.5%, Jaipur 1.4%, K.V. Rangareddy 1.2% and Kolkata 1.0%.
NSE has a product offering to suit risk appetite of diverse investor groups, financial planning and portfolio diversification need. The product offering range from equities, exchange traded funds, mutual funds and equity derivatives, fixed income products such as corporate bonds, Government securities & debt exchange traded funds. Also new financial products such as sovereign gold bonds providing exposure to Gold, and InvITs & REITS allowing investors to invest in infrastructure & real estate projects are available on the NSE exchange platform.