Quantity of demat securities grew by nearly 24 per cent to over 71,000 crore units in the last fiscal,although a downturn in share markets led to a decline in the number and value of shares transacted in the demat form.
According to latest data available with market regulator Sebi (Securities and Exchange Board of India),NSDL and CSDL together held 71,337 crore demat securities at the end of 2011-12.
These include shares of listed and unlisted companies,mutual fund units,debentures and commercial papers.
Dematerialisation or demat is a process of converting the physical form of shares and other securities into the electronic form.
There are two entities — National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) which hold securities of investors in electronic form through their registered Depository Participants.
Individually,at NSDL quantity of dematerialised securities increased by 23 per cent to 57,980 crore,while it rose by 27 per cent at CDSL to 13,357 crore.
In fiscal 2010-11,the number of demat securities stood at 47,130 crore at the NSDL,and 10,531 crore at CDSL.
However,the total value of demat settled shares declined by 19.4 per cent to Rs 12.47 lakh crore in 2011-12 at NSDL.
In the case of CDSL,the value declined by nearly 34 per cent from about Rs 4.39 lakh crore in 2010-11 to Rs 2.90 lakh crore in 2011-12.
The overall quantity of settled demat shares stood at 10,989 crore,down 19.4 per cent from fiscal 2010-11.
“While the quantity of dematerialised shares increased at the depositories,the quantity and value of shares settled in demat declined,primarily following the market downturn and consequent fall in traded value,” Sebi said in its annual report for 2011-12.
At the end of 2011-12,there were a total of 9,741 listed and unlisted companies available for demat at NSDL,up from 8,842 in the previous fiscal.
The number of such companies at CDSL stood at 8,329 in the last fiscal,up from 7,490 in 2010-11.
Besides,last fiscal year witnessed,widening of the geographical coverage of depository participants of NSDL and CDSL.
The depository participants locations for NSDL were available at 1,554 cities and for CDSL 2,104 cities in 2011-12.