Abstract

Concept: Dematerialization is the process by which physical share certificates of an investor are converted to an equivalent number of securities in electronic format. The converted securities are owned traded and utilized like physical securities.Purpose: Purpose is to analyze the investors’ perception towards service quality of DEMAT account in Nepal.Methodology Used: Descriptive and analytical research designs have been used for the study. Primary data through the questionnaires has been collected using convenience-sampling technique for the study to know the awareness, opinions, feelings and perceptions on Nepali Depository System. Questionnaires have been developed in five point Likert Scale and Cronbach’s alpha test has been conducted to test the reliability of the data. Findings: Majority of respondents are satisfied with the different features of DEMAT account and responsiveness dimension of service provider is more attractive than other dimension.

Highlights

  • Trading of stock through dematerialized (DEMAT) account is a new trading mechanism in Nepalese financial market

  • Responsiveness dimension of service provider is more attractive than other dimension. b

  • This research has been carried out to determine customer’s perception towards the service quality of DEMAT account in Nepal, to access investor’s level of satisfaction towards service rendered by Depository units of Nepal, to measure reasons of customer’s dissatisfaction in Depository Participants (DP)’s service, to determine the impact of service quality dimensions rendered by DPs on customer satisfaction and to determine most important determinants of customer’s satisfaction

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Summary

Introduction

Trading of stock through dematerialized (DEMAT) account is a new trading mechanism in Nepalese financial market. It has just been 5 years that the government has made it compulsory to transact securities through DEMAT. DEMAT is the foundation of concurrent changes in the capital market in Nepal. In Nepal, DEMAT is a new concept for share market investors. The depository system was fully implemented on 17th August 2015 (The Kathmandu Post, 2015). An investor or a person having shares of various companies listed in Nepal Stock Exchange (NEPSE), are required to dematerialized their www.scholink.org/ojs/index.php/sssr

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