Folios are numbers designated to individual investor accounts, though one investor can have multiple folios.
According to SEBI data on investor accounts with 45 fund houses, the number of equity folios rose to 3,0,392,991 as of last month-end from 2,91,80,922 for the entire last fiscal ended March 31, 2014, registering a gain of 12,12,069 folios till December -- the nine month period of the current fiscal.
The additions came at a time when the market was scaling new highs.
The investor base reached its peak of 4.11 crore in March 2009, while it was 3.77 crore in March 2008.
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Industry experts said that a strong rally in the equity market and the consequent rise in investors' interest led to a sharp increase in retail folios.
"The key contributing factors seem to be an uptick in sentiments and expectations of an investor friendly and reform-oriented government delivering on policy changes," he added.
Echoing a similar view Quantum AMC CEO Jimmy Patel said: "It is the optimism of investors because of which the folios in equity segment have increased."
The addition in equity folios is in line with BSE's benchmark Sensex surging by 23 per cent in the first nine months of the current financial year.