Skip to main content

NSDL and CDSL Demat Accounts


Indian Stock Markets are bearish and that is very much reflected in the number of DMAT Accounts.A look at the number of depository accounts opened with the two depositories of India - National Securities Depository (NSDL), promoted by the National Stock Exchange (NSE) and the BSE promoted Central Depository Services(CDSL) indicates a clear down turn. And what is all the more a clear sign is that around 50% of the accounts in these depositories have zero share accounts in them. This means that there are neither any shares to sell nor any shares that have been bought in around 50% of the total depositories.
NSDL today is stated to have a total of 96 lakh accounts while CDSL has around 53 lakh demat accounts. Of these, around 50% accounts have a nil balance. At CDSL, 17 lakh accounts are stated to have a nil balance. In NSDL around 30 lakh accounts are estimated to have nil balance.
There are two reasonts for this. Firstly, this could mean that given the current bearish trend of the market, has led to people selling off all their holdings and would now resume buying only when the market shows some solid signs of an upturn. This, today-up-and-tomorrow-down scene has kept 50% of the total demat account holders at bay, they prefer to have zero costs when it comes to even maintaining accounts.
The second reason could be that some accounts of these 505, were opened with a specific purpose and once that was served, they just kept a zero balance. When the markets were up and there was kind of frenzy, like the one seen in January 2008, especially prior to Reliance Power IPO opening, there were people from all walks of life scurrying to open demat accounts. Now that the issue is over and done with and we all know what happened after it got listed, maybe all multiple accounts, which had been opened, within the permitted legal purview, have now exited from the market? Remember how scores of housewives, students and retired people; all had opened a demat account for applying for the Reliance Power IPO?
According to the data from National NSDL, the number of, new demat accounts added between June 2007 and January 2008, when the market was nearing its peak at 21,000 levels, was 12.78 lakh. But after the market crashed, since then, from February to June 2008, only 2 lakh new accounts were added. At the CDSL, almost 10 lakh fresh accounts were registered from June 2007 to January 2008. But only 4 lakh accounts have been opened in February-June 2008.
The lack of quality issues in the primary market, the lackluster secondary market, the bad taste left by the IPO of Reliance Power, all together have today affected the investor sentiments and this has been very much reflected in the growing nil demat account balances.
There is no direct remedial measure for this. As they say, there is no cure for moods, sentiments. The accounts will automatically pick up activity once the market improves. Yes, the arrival of a good IPO in market can repose some of the faith back into the system.

Comments

Post a Comment

Popular Posts

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

Moneycontrol Terminal - Streaming Live Quotes

Moneycontrol has introduced a new feature Moneycontrol Terminal - an enhanced version of real time price updates. Though there were live quotes provided by the website previously, the present form  gives a better update of live quotes of indices and stocks.

This terminal provides live streaming quotes for both NSE and BSE free. It also provides quotes for most of the indices and also the constituents/stocks of the indices in BSE and NSE.  The terminal also provides live news and other market news, which might be useful for traders. The hardware recommended is minimum of 1 GB RAM.

It would be better if stock of any choice could be added ( market watch of a set of stocks ), which would be easier to track one's trading positions. Anyway, this is a better alternative for people who don't have access to any trading software, to view live action of the markets.




You could just try the same here at Moneycontrol Terminal


NSE Level 3 Data

Before we get into details of NSE Level 3 Data, it is important to first understand the basic operations of the stock market.  All publicly traded equities have a bid price and an ask price when they are bought and sold. The bid is the highest price a trader( or an investor) is willing to purchase a stock. The ask is the lowest price in which he is willing to sell a stock.


Depth of the Market(DOM):Looking at a Level 1, Level 2 or Level 3 quotes can give a trader, a basic idea of how a stock is performing at any given time.

Level 1 Market Data provides the basic market data which includes Bid price, Bid size, Ask price and Ask size.

Level 2 Market Data provides more information than Level I data. Mainly, it doesn't just show the highest bid and offer, but also shows bids and offers at other prices. Now level 2 provides market depth data upto 5 best bid and ask prices.

Level 3 Market Data provides market depth data upto 20 best bid and ask prices .  This primarily used by brokers and ma…