1Reader in Corporate Secretaryship,
2Research Scholar,
Compulsory trading of shares in dematerialised form in specified scrips by institutional investors was introduced by SEBI with effect from 15th January 1998. The concept of depository services was brought out with the aim to reducing the cost and risks involved in paper based trading. These capital market reforms also paved the way for a new employment opportunity ie, setting up of depository participants. But these improvements in capital market created mixed feelings of joy and fear in the minds of investors. The present article is designed to elicit the opinion of respondents in Erode Town about their awareness of the depository services and their preference for the demat system with reference to Stock Holding Corporation of India Limited.