Why in news?
The National Stock Exchange of India (NSE) announced in July 2025 that the number of unique trading accounts had surpassed 23 crore, only three months after crossing the 22‑crore mark. The milestone reflects the rapid growth of retail participation in India’s capital markets.
About NSE
Established in 1992 and recognised by the Securities and Exchange Board of India (SEBI) in 1993, the NSE introduced electronic, screen‑based, anonymous trading to India. It began operations in 1994 and is now one of the world’s largest exchanges by market capitalisation and derivatives trading volumes. Headquartered in Mumbai, the NSE is considered a critical financial infrastructure institution.
Objectives and features
- NSE aims to democratise finance by providing efficient and transparent access to trading for all eligible participants, not just a cartel of brokers.
- It introduced modern technology and risk‑management practices, offering markets for equity, debt, derivatives, exchange‑traded funds, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
- Innovations include the NSE IX at GIFT City for global trading, NSE EMERGE for small and medium enterprises and a Social Stock Exchange for fundraising by not‑for‑profit organisations.
Why are trading accounts rising?
- Digital platforms and mobile apps have made it easy for individuals to open demat accounts and trade online.
- Low interest rates and financial awareness campaigns have encouraged households to invest in equities.
- Pandemic‑era lockdowns saw many first‑time investors enter the markets, a trend that continued as markets performed well.
- Regulatory initiatives promoting investor protection and financial literacy have increased confidence in formal markets.
Implications
- Greater retail participation can deepen capital markets and provide companies with wider access to funds.
- However, inexperienced investors may be vulnerable to market volatility. Continuous investor education and robust regulation are necessary to prevent excessive risk‑taking and protect consumers.
Conclusion
The rapid growth in trading accounts highlights India’s progress toward a more inclusive financial system. Balanced regulation and education will be key to ensuring that new investors benefit from market participation without undue risks.