Unique Tax IDs registered on NSE rose from 2.7 crore  to 9.2 crore: Economic Survey 2023-2024

Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-24 on July 22. Following the presentation, Chief Economic Adviser Dr. V. Anantha Nageswaran held a press conference to address media queries regarding the survey. 

As per the Economic survey report, the number of unique tax IDs registered on the NSE rose from 2.7 crore in FY19 to 9.2 crore in FY24. The enhanced participation of retail investors in the Indian capital market is hugely welcome and lends stability to the capital market. It has also enabled retail investors to earn higher returns on their savings.

The Study shows that most of the new retail investors are likely young and may have a higher risk appetite. It is also reflected in the interest that retail investors have shown in derivatives trading, especially expiration-day trading. While derivatives are hedging instruments, they are mostly used as speculative instruments by investors worldwide. India is likely no exception.

The individual investor's share in the equity cash segment turnover was at 35.9 per cent in FY24. A rise in retail participation was more substantial and steadier through the indirect channel via mutual funds.

The key highlight is the rise in annual net SIP. Annual net SIP flows have doubled in the last three years, from ₹0.96 lakh crore in FY21 to ₹2 lakh crore in FY24. Total SIP AuM is approximately 35 per cent of the AuM of the MF industry for equity-oriented schemes. This has pushed up ownership of MFs in Indian equities to 9.2 per cent as of 31 December 2023, compared to 7.7 per cent as of 31 December 2021.

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