New Delhi, April 8 -- After two years of strong expansion, the pace of new demat account additions slowed in FY26, signalling a shift in retail investor behaviour as volatile markets and weaker returns tempered their enthusiasm.

Net demat account additions fell to about 32 million in FY26 from a record 41 million added in FY25, according to data collated from the Centre for Monitoring Indian Economy. The total number of demat accounts crossed 225 million.

The 22% year-on-year decline in additions of demat accounts-dematerialized or paperless accounts mandated for trading in securities-suggests that the surge in retail participation during the recent bull run is beginning to lose momentum amid a more uncertain global and market environme...