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In terms of incorporations of new investors, Maharashtra is once again number one

Mumbai: After nine months, Maharashtra has regained the top spot in new investor registrations from Uttar Pradesh (UP). The state saw 300,000 new investors get unique customer codes (UCCs) in December, ahead of UP’s 290,000 UCCs, according to the latest NSE data.

UCCs are unique client identification numbers that are assigned to investors by stock brokers and are assigned to their demat accounts. Analysts said more migrants to Maharashtra entering the capital markets and a high base in UP may have combined to help the western state regain the top spot.

Gujarat recorded the third highest addition of new investors at 230,000, Rajasthan 140,000 and West Bengal 120,000. The five states alone contributed 52% of new investor registrations in the top 25 states.

The data applies only to the country’s largest stock exchange, NSE, which enjoyed a market share of 91.5% ( $20.79 billion $22.72 billion gross turnover) in the cash equity segment, with BSE a distant second. This makes the NSE an indicator of developments in the capital markets.

“Maharashtra attracts the largest number of migrants among Indian states and many of these working-age youth must have accounted for the new registrations,” said Alok Churiwala, managing director of Churiwala Securities.

He attributed UP’s rise to the “growing awareness” about capital investments among the educated masses, especially in urban regions like Noida.

In February 2023, UP toppled Maharashtra as the state with the highest registration of new investors.

The increase in market share is confirmed by the increase in demat accounts accumulated in NSDL and CDSL depositories since the pandemic. The number of client demat accounts, where securities are stored in electronic form, tripled from 40.8 million at the end of FY20 to 143.9 million as on January 31 of the current fiscal year.

The growth of UP’s investor base has been prolific, growing from just 2.3 million at the end of FY20 to 9.01 million at the end of December 2023.

In terms of total registered investors, Maharashtra leads with 17.5% or 15 million investors as of December 2023. UP overtook Gujarat in November 2022 to occupy the second spot and has maintained that position since; Gujarat is third with 7.7 million, and West Bengal and Karnataka are with 4.8 million each. These five states together accounted for 48.3% of the total investor base of 85.4 million as of December 2023, according to NSE data.

“UP had low penetration, but post-pandemic, it has seen phenomenal growth in new UCCs,” said Uttam Bagri, promoter director, BCB Brokerage Pvt. Ltd. “We will see a normalization of growth in UCCs in the future, but there will be “It will be a great competition for the top spot in terms of new additions.”

From a multi-year low of 7,511.1 on March 24, 2020, the Nifty has surged 190% to 21,782.5 on February 9, sparking huge interest from domestic investors.

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