New Delhi, Sep 6 (IANS): India's total demat accounts continue to rise, with over four million new ones added in August, as per the depositories’ data.

National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) data showed that the total number of demat accounts in the country rose by over four million in August to 171.1 million.

The demat count was boosted by record IPOs in August.

Last month, 10 companies raised around Rs 17,000 crore via IPOs.

On average four million demat accounts have been added since 2024, monthly.

About 3.2 crore demat accounts have been opened in the first eight months of the current year.

The reason for opening of demat accounts in large numbers is also new IPOs in this calendar year.

More than 50 companies have raised Rs 53,419 crore through IPOs from the beginning of 2024 to August 31.

A study conducted by the Securities and Exchange Board of India (SEBI) said that a large number of investors are opening demat accounts only to participate in IPOs.

It was reported in the study that almost half of the demats used for IPO applications from April 2021 to December 2023 were opened after the pandemic.

The stock market has given excellent returns to investors in 2024.

Since the beginning of this year, Nifty surged about 15 per cent and 27 per cent in the last one year.

The Sensex rallied by 13 per cent since the beginning of this year and 24 per cent in the last one year.

The reason for the rise in the Indian stock market is the strengthening of the economy.

India's GDP growth rate was 8.2 per cent in the financial year 2023-24, which is estimated to be 7.2 per cent in the financial year 2024-25.