This study investigates the impact of rising retail participation—measured through the growth of Demat accounts—on stock market liquidity in India, represented by the stock turnover ratio. Over the past decade, India has seen a substantial increase in individual investors opening Demat accounts, particularly through platforms such as CDSL. This paper analyzes data from 2018 to 2025, using monthly statistics from NSE, BSE, NSDL, and CDSL to examine whether an increase in Demat account holders correlates with higher stock turnover in the Indian equity market. The findings indicate a strong positive correlation between Demat account growth and market liquidity, especially during periods of economic recovery and digital brokerage expansion. This relationship is further influenced by sectoral investment trends and government-led financial inclusion initiatives. The results suggest that retail investors play a significant role in driving market activity and enhancing liquidity, underlining the importance of retail-focused market policies. This research contributes to the understanding of how individual investor behavior affects stock market dynamics in emerging economies like India.