NSE Investor Base Crosses 11 Crore Milestone
The National Stock Exchange of India (NSE) reached a milestone on January 20, 2025, when its unique registered investor base crossed 11 crore, and the total number of client accounts exceeded 21 crore. This figure includes all accounts registered with the exchange, as clients can register with multiple trading members. This growth highlights a remarkable increase in investor participation, with the journey to this milestone accelerating notably in recent years.
Since its inception in 1994, the NSE took 14 years to register its first 1 crore investors. Subsequent milestones were reached progressively faster, with the latest 1 crore investors added in just over five months. Daily registrations in the last five months ranged between 47,000 and 73,000, driven by digitization, increased investor education, financial inclusion initiatives, and strong market performance. In 2024, the Nifty 50 index returned 8.8%, while the Nifty 500 index delivered a 15.2% gain, marking the ninth consecutive year of positive returns for Indian markets. Over the five years ending December 2024, the Nifty 50 and Nifty 500 posted annualized returns of 14.2% and 17.8%, respectively, reinforcing investor confidence.
The investor participation has risen nearly seven-fold in the last decade, from 1.65 crore in May 2014 to 11 crore today. This not only shows the increased penetration of equity investments but also the trust of Indian households, 20% of which now invest directly in the markets. The market capitalization of NSE-listed companies has also expanded significantly, increasing from Rs 73.5 lakh crore in May 2014 to Rs 425 lakh crore in January 2025. This growth aligns with Prime Minister Narendra Modi’s vision of 'Sabka Saath, Sabka Vikas, Sabka Vishwas', emphasizing inclusive economic progress.
The demographic profile of investors has undergone a significant shift. The median age has declined from 38 to 32 over the last five years, and 40% of new investors are below the age of 30. Women now constitute one in four investors, which is a reflection of increasing gender diversity in market participation. Geographically, nearly all corners of the country are represented, with investors registered from all but 30 pin codes. Among the latest 1 crore registrations, 40% are from North India, 28% from the West, 20% from the South, and 12% from the East. Maharashtra tops the states with 1.8 crore registered investors, followed by Uttar Pradesh with 1.2 crore and Gujarat with 98 lakh. The three states account for 36.6% of the total investor base. Importantly, 47.6% of the new additions came from districts outside the top 100, with 62% from districts beyond the top 50, reflecting increasing confidence of smaller towns in the equity market.
Indirect market participation through Systematic Investment Plans (SIPs) has also seen a significant rise. During July-December 2024, 3.7 crore new SIP accounts were opened. Average monthly SIP inflows during this period stood at Rs 24,748 crore, up from Rs 19,972 crore during the first half of the year. This growth reflects increased investor engagement and confidence in mutual funds as a wealth creation tool. The rise in SIPs can be attributed to improved digital access, targeted financial literacy programs, and government efforts to promote financial inclusion. A younger, tech-savvy population has further fueled this trend.
Sriram Krishnan, Chief Business Development Officer of NSE, expressed his thoughts on this milestone, stating, “As the new year begins, India’s capital markets have achieved a significant milestone, with the number of registered investors at NSE exceeding the 11-crore mark. This rapid growth, with over 1 crore new investors added in just five months since crossing the 10-crore mark in August, reflects the rising confidence of the Indian public in the stock market as a trusted avenue for wealth creation. He highlighted the role of enhanced digital accessibility, investor education, and government initiatives in driving this surge. Krishnan also added that a more youthful, tech-savvy population now realizes the advantages of equity investments, and that is a change that empowers millions to actively participate in India's economic growth and deepens the capital markets".
The milestone reached by the NSE underscores a robust growth trajectory for India’s equity markets. With increased participation from younger demographics, women, and investors from non-urban regions, the markets are set to play an even more significant role in wealth creation and economic inclusivity. As financial literacy and digital infrastructure continue to advance, investor participation is likely to deepen further, cementing India’s position as a leading global investment destination.
