The total number of demat accounts continued to rise in February, however at the slowest pace in 21 months. Around 2.26 million new accounts were added during the month. The slow growth coincided with a correction in the Indian equity markets due to sustained selling by foreign investors. On a year to date basis, benchmark indices Sensex and Nifty 50 have lost around 4.5 percent each, while broader indices BSE Mid and Smallcap have declined over 14 percent and 17 percent, respectively. The decline in new demat account openings was also driven by reduced activity in the derivatives market following stricter regulations introduced by the Securities and Exchange Board of India (SEBI) The recent slowdown has resulted in a cautious investor behavior but analysts see it as part of a natural market cycle, rather than a longer-term concern. However, in the short term, investor confidence remains subdued. The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Money control.com advises users to check with certified experts before taking any investment decisions.