An increasing number of investors in the capital markets now prefer to hold their instruments — mutual funds and bonds — in electronic form rather than physical certificates. The number of new demat accounts opened with India’s leading depositories has seen a robust growth in FY16.
While retail participation in equity markets remained subdued due to high volatility in the secondary market, participants said that those who were taking exposures to equities through the mutual fund route and also investing in tax-free bonds were seen opening demat account to hold those investment in electronic forms.
