Number of demat accounts nearing 6.3 million as participation of investors in stock market grows

Published On: June 5, 2024 08:10 AM NPT By: Republica  | @RepublicaNepal


KATHMANDU, June 5: The participation of the general public in Nepal's securities market has been steadily increasing, with the number of demat (beneficiary) accounts nearing 6.3 million. According to the latest data from Central Depository Company and Clearing (CDSC), a subsidiary of Nepal Stock Exchange (NEPSE), the total number of demat accounts has reached 6.2867 million as of Tuesday.

The Economic Survey 2080/081 mentions that the number of citizens holding demats accounts represented 21% of the total population as of mid-March 2024, with the number reaching 6.224 million.

In mid-July 2023, there were 5.823 million demat accounts, up from 5.346 million in mid-July 2022, reflecting an 8.9% increase as reported by the Ministry of Finance. This significant rise indicates growing confidence and interest among common investors in the securities market.

As of June 4, 2024, the number of people using Meroshare, the online platform for trading shares, has reached 5.33728 million, with 3.574 million of them being active users. By mid-July 2023, the number of people using Meroshare was around 4.826 million, showing substantial growth.

The Ministry of Finance reports that by mid-March 2024, the number of Meroshare accounts had increased to 5.264 million, which accounts for about 18.03% of the total population. This surge in Meroshare accounts indicates a significant shift towards digital trading and investment among Nepali citizens.

By the third week of May 2024, the number of dematerialized securities had reached 12.6225 billion, demonstrating the extensive use of digital platforms for managing securities. The number of depository participants (DPs), institutions authorized to open demat accounts, has also grown, reaching 109.

By the end of May, the number of companies registered to dematerialize securities with the CDSC had increased to 251, compared to 236 during the same period in the last fiscal year. This growth reflects the expanding trust and reliance on CDS for secure and efficient securities management.

Additionally, the number of depositors who have obtained membership with the CDSC to provide depository services has reached 109, up from 82 in the same period last year. 

The continuous rise in the number of demat and Meroshare accounts, coupled with the growing number of registered companies and depository participants, highlights the dynamic growth and increasing engagement of common investors in Nepal's securities market.

 


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