Study of Impact of Dematerialization of Shares on the Indian Stock Market

In the modern world, the stock market plays a crucial role in the country’s economic development and is amongst the most versatile sectors in the country’s financial system. It provides a platform for investors to trade shares, bonds, and debentures and allows the companies to raise the much-required funds to boost their business. In this way, the stock market plays a crucial role in enhancing the country’s industry and commerce growth. The reason for selecting this topic is that the Indian Share Market has grown unprecedented after the introduction of Dematerialization by the government of India in the mid – 90’s. Hence, to study how the Dematerialization and electronification of shares have shaped the tremendous growth and potential of the Indian Stock Market became an interesting study to explore its various possibilities. The journey traces the growth of the Indian Stock Market from its humble beginning with just a few traders to the globally competitive and colossal stock market of the present day. Currently, the Indian Stock Market boasts of having 5 70 000 traders and a total market capitalization worth 2.27 trillion dollars, leading to becoming the world’s 11th largest stock exchange. This paper explores the multiple benefits that they share trading industry gained as a result of Dematerialization.