Analysis of factors affecting the decision making of the investors in depository system

The present study is an attempt to study the factors affecting the decision making of the investors in depository system. The primary data are collected with the help of pre-tested structured questionnaire on five point Likert scale from 294 respondents (investors) of different age, gender, education, occupation, income from the cities like Gurgoan, Chandigarh and New Delhi, selected on the basis of convenience sampling. The data collected have been analyzed with the help of various descriptive statistics like frequency and percent and the results are tested by the use of ANOVA technique. Most of the investors are of the view that shorter settlement period, safety of securities with the depositories, attitude of the staff available with the DPs, timely services provided by the DPs to the investors, reduction in transaction cost, repatriation of sales proceeds of shares/debentures by NRIs are some of the factors which affects the decision making of the investors in depository system. Opening demat account with DPs is easy but they charge for providing this service. Converting the securities into electronic from and selling the securities on behalf of the minors are difficult in the system. But they are of the view that T+3 and ruling settlement is the result of the depository system. The education of the investors plays an important role in decision making where the difference in the opinions of the investors is found significant in most of the cases, followed by other factors such as occupation, age, etc.