Click to play videoMumbai: Sarvesh Soni had opened a demat account six months ago hoping to cash in on the robust returns offered by the stock market, but the recent turmoil in Dalal Street has robbed him of his taste for share trading.
“Some IPOs were giving good returns, so I decided to open a demat account. I thought I would make some money. But now the market has fallen. I have sold all my shares, and am closing my account. I also have to pay a maintenance charge to the bank. This isn't profitable,” Soni complained.
Soni's case is not in isolation. Experts say many small investors have decided to close their demat accounts, and cut their losses.
“People are losing interest because of the fall in the market and absence of good IPOs. I'd say around 4 per cent of the accounts have been closed,” DP Manager, Shah Investor Home, Praveen Master said.
Six months ago with the Sensex near its lifetime high above the 21,000 mark there was a rush for new demat accounts. But over the last two months, nearly 10 per cent of these accounts have been closed due to lower returns and a now-unviable Rs 250-300 demat account maintenance charge.
Clearly, for small investors it's a case of once bitten, twice shy.
(With inputs from Manish Desai in Ahmedabad)
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