• Dr. Sabina Batra

In the era of liberalization and globalisation, the capital markets assume a greater importance. Capital Market is the barometer of the economy and represents macro–economic affairs of the country. It is an index of economic and industrial development of the country. India has the greatest potential amongst the emerging economies due to its favourable demographics, rapid urbanization and driving economic growth and Indian economy has greatest potential of any emerging economies in years to come, which despite the near term concerns, would amply reward the long-term investors. Technology has changed the face of Indian stock markets in the post liberalization era. Competition amongst the stock exchanges, increase in the number of players and changes in the trading system led to a tremendous increase in the volumes of activity . The traditional settlement and clearing system proved to be inadequate due to operational inefficiencies. Hence, there emerged a need to replace this traditional system with a new system called ‘Depository System’. This study was undertaken to analyse the relationship between the type of market and certain personal variables of investors and to analyse the factors which differ in the investors who have increased or decreased their investment after the inception of dematerialisation. Although a number of factors were identified to be different in these two categories, but according to the preference of the respondents, non-popularity of the depository system due to fear of exposure to the taxation authorities was strikingly different in the two categories. This was followed by another prominent factor i.e., popularity due to freedom from worries of the loss of shares through theft, fire, and mutilation etc. It would be over optimistic to weld all the findings of the study into a single theory. However the findings could be synthesized to present an integrated view that will provide working hypothesis for fruitful future research. Moving step by step to the full moon sight, the study has brought home very important facts, which, if, concealed would amount to injustice being done to the investors and the prospective investors.

Index Terms: Depository System, Dematerialisation, Personal Variables

"Paper to Paperless Trading: A Paradigm Shift in Indian Capital Market", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.362-375, June-2019, Available :http://www.jetir.org/papers/JETIR1906C60.pdf

"Paper to Paperless Trading: A Paradigm Shift in Indian Capital Market", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp362-375, June-2019, Available at : http://www.jetir.org/papers/JETIR1906C60.pdf