The Hindu Business Line : NSDL demat account swells

The last 15 days alone have seen nearly one lakh accounts being added to National Securities Depository Ltd's (NSDL) growing investor base. The last count on January 24 puts investor base at 47.74 lakh, up from 46.77 lakh recorded barely a fortnight ago on January 10.

That retail participation is still very strong - at best, it has only halted temporarily - is clear from the numbers doled out by the depository, say sources observing the market from close quarters.

NSDL happens to be the country's leading depository with a clear edge over its only competitor, Central Depository Services Ltd.

Sources, however, warned that the influx of small participants would stop if the volatility continues for some more time or reaches higher levels. Retail investors are a class by themselves; many of them are ready to quit at the first sign of trouble, noted Mr Sanjay Prakash, CEO of HSBC Mutual Fund. "They are probably the most sensitive of the lot. Extreme conditions can scare them," he said.

Retail investors have been changing in terms of their risk-taking ability, remarked Mr Raghvendra Nath, head of strategy at Birla MF. "Never was this more apparent ... the last one year or so has unleashed changes that few thought were possible," he said, adding that investors were regularly in touch with brokerages and fund houses.