Depository is an institution or a kind of organization which holds securities with it, in which trading is done among shares, debentures, mutual funds, derivatives, F&O and commodities. A depository holds shares, debentures, bonds and units etc of an investor in electronic form and offers their transactional services towards selling and buying of shares/stocks in stock market also in a transparent manner. In  September, 1995  the  Government  have  accepted  in  principle the proposed law for settling up of depositories and of  a   central   depository  for   immobilization  of physical  certificates.  The  central  depository  is  to be  set  up  as  trust  to  hold  the  physical  custody  of shares  and  effect  transfers  by  book  entries  without the  need  to  deal  and  transfer  the  physical  certificates between  parties. The present study is an attempt to explore about dematerialization, depositories and to know the investors perceptions towards of Dematerialisation and Indian Depository System with reference to Guntur and Krishna Districts of Andhra Pradesh, India through a survey. On the basis of results, it is concluded that the statements related to awareness, opinions, feelings and perceptions of DEMAT A/c holders are dependent.

KEY WORDS: Depository, Physical Certificates, Depository System, DEMAT Account Holders, Central Depository.