NAME

DEMAT ACCOUNT

Abstract
The main purpose of the study is to analyze the investors’ perception towards service quality of
DEMAT account in Nepalese capital market. The study has used descriptive research design to
measure the perception towards service quality. This study is based on primary data by
administered questionnaire to the investors. Service quality and customer satisfaction are
interrelated. Higher the service quality, higher will be the customer satisfaction.

Introduction

The word “Demat” comes from Dematerialization. As demat account stores shares in their
dematerialized format, dematerialization is the conversion of shares from paper format to
electronic format. A Demat account short for Dematerialized Account. It is a necessary account to
hold financial securities in a digital form and to trade shares in the share market. The demat
account makes Investing in shares a safe, streamlined, cost-effective and time-saving experience.
As the share certificates get converted to electronic format, it increases their accessibility and ease
of handling. However, investing in shares and other equity investments can be a risky business.
Demat Accounts make it easier and safe, but it also requires investors to follow the rules and
guidelines.

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Features Of Demat system

• Lower Risk

Possessing shares in their paper format carries a lot of risks like loss, misplacing them, damage to
the certificates, etc. Dematerialization of shares eliminates the risk of loss and damage to the
securities. The paper certificates also had high incidences of forgery and theft. As the holdings are
now in an electronic format, it has reduced the threat of forgery and theft.

• Easy To Hold

A demat account makes equity trading and your shares accessible. You can trade in securities,
view your holdings, transaction history, etc. at the click of a button. It also makes managing your

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details easy. You can make changes to your address, linked phone number, linked bank account,
and such other account- related changes for every company stock all from your demat account.

• Ease Of Trading

Earlier, paper certificates had to be sent to the Company or the Registrar and Transfer authority to
change the ownership of shares, which resulted in delays, additional costs and loss of certificates.
With demat accounts; transfer of shares has become easier.

• Reduced Costs

Stamp duty applicable on transfer of physical shares, which was a cumbersome process for
investors. Dematerialization of shares has eliminated the stamp duty and reduced all other
transactional costs.

• Reduced Time

A demat account minimizes the time taken to trade in equity investments. Buying and selling of
shares is a quick process that can be done intra-day through an online trading platform. Similarly,
changing personal details in your stocks can be done through a single demat account in which the
shares are held. All this has reduced the time taken to trade in and manage securities for investors.

• Faster Transactions

Before Demat accounts were introduced in the stock market, it would take several days to settle a
single transaction in the stocks market. But now, with the help of a Demat account, a user can buy
or sell every day, and the transaction is settled instantly after the end of the trading day.

• Odd – Lot Problem solved

Earlier, there were multiple restrictions on the selling of shares. Shareholders could not sell shares
in odd lots. Demat Accounts has eliminated those restrictions.

• Variety Of Investments

With the diversification of investment options, a demat account can store mutual funds, bonds,
government securities, Exchange Traded Funds (ETF),

Literature Review

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George ( 1996 ) in his article “ Towards a paperless settlement system” explains about the role Of
the NSDL in revolutionizing the paperless stock settlement system in the country. He has
examined steps taken by the depository to ensure that the scripless trading system is a success. He
has also stressed the importance of the role of regulatory body in making the depository System
successful.

Jeyanthi (2007) in his research work “A study on National Stock Exchange of India Limited”
Has highlighted that the NSE has created a niche for itself not only in the national arena but also In
the international market with the adaptation of required structural changes. Therefore there is No
doubt that NSE will be an attractive destination for the national & international investors to Park
their funds in the years to come

Javaid ( 2003) in his thesis “ A study of operations of stock exchanges with the special reference
To Delhi Stock Exchange” discussed that Indian stock market has emerged as a major source of
Finance for the corporate sector. It is an institution evolved in the industrial developed capitalistic
Economies with free market mechanism. Stock exchange was termed as institutional allocator of
Resources par excellence.

Research Methodology

Research methodology is the specific procedures or techniques used to identify, select, process,
and analyseinformation about a topic. Research Methodology refers the discussion regarding the
specific methods chosen and used in a research paper. This discussion also encompasses the
theoretical concepts that further provide information about the methods selection and application.

Objective Of the Study

A Project Report Always Has a certain objective which needs to be accomplished. Following Are
The

Objectives Behind the Preparation of my Project.

• To Know The Concept Of Demat System

• To Find Out Advantages and Disadvantages Of such System

• To understand the Sharekhan Broking Firm’s Services

• To Increase The Product awareness of Sharekhan

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• To analysis The preference and satisfaction Level of Investors to the services Provided by
Sharekhan

Hypothesis

• There is no significance Difference in the level of Investors satisfaction for the products and
services Provided to Them.

• There is less awareness about the products and services of Sharekhan limited in Rural areas.

Conclusions