Assessing Investment Awareness: An Empirical Study of Investors in Asifnagar Tehsil, Hyderabad

Authors: Bulusu Viswanadham

Country: India

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Abstract: The emergence of dematerialized securities ('Demat') has revolutionized securities trading in India, eliminating physical share certificates and enabling electronic book-keeping through depositories. As the market leader in depository services, the National Securities Depository Limited (NSDL) operates under the regulatory framework established by the 1996 Depositories Act and subsequent SEBI regulations. Despite these advancements, critical questions remain about investor awareness and adoption of Demat systems. A recent study conducted in Asifnagar Tehsil of Hyderabad District revealed concerning gaps in investor knowledge about Demat accounts. The research found surprisingly low levels of awareness among local investors regarding the functionality, benefits, and operational aspects of these electronic holding systems. These findings highlight the need for targeted financial literacy initiatives even in urban financial centers, suggesting that the transition from physical to dematerialized securities remains incomplete at the grassroots investor level. The study underscores the importance of bridging this knowledge gap to ensure broader participation in India's modernized securities market infrastructure.

Keywords: depository, depository participants, demat account

Paper Id: 232571

Published On: 2025-05-07

Published In: Volume 13, Issue 3, May-June 2025

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