Internet trading -- Now it's SHCIL

Internet trading -- Now it's SHCIL
ENS ECONOMIC BUREAU

MUMBAI, JAN 22: Stock Holding Corporation of India (SHCIL) has launched a software product that would allow investors to conduct all stock market operations including cash payments through the internet. The product named `Stockdirect' and launched by SHCIL along with State Bank of Patiala (SBP), would bring the investor's bank, broker, stock exchange and depository participants under one roof, said managing director and CEO of SHCIL B Virupaksha Goud.

Investors, who do not have access to personal computers and internet connection, could avail this facility using the request transmitting machine (RTM) installed in SBP's premises, SBP's managing director A K Batra said. "As Stockdirect brings a lot of convenience to investors, it will bring the share market to investors' pocket," he said. Goud said SHCIL has received special permission from Securities and Exchange Board of India (SEBI) to use the facility though the government has yet to approve trading through the internet. SHCIL has tied up with Corporation Bank to facilitate `Stockdirect' transaction in Mumbai and it would also tie up with other banks to offer the services in other parts of the country. "We are in advanced stages of negotiation with Bank of Mathura to offer the service in Chennai," Goud said. SHCIL is the country's largest custodian of shares with the last year seeing the company holding assets worth over Rs 900 crore.

Meanwhile, several broking outfits and institutions have jumped onto the internet stock trading bandwagon with grand plans. Nearly a dozen broking outfits are in advanced stages of preparation for introducing e-broking in the country. With internet companies attracting fabulous valuations, some are even thinking of floating separate ventures for internet trading. In fact, ICICI Ltd has launched an integrated internet-based service which allows its customers to place orders for shares over the internet, make payments for them online and hold them in dematerialised form.

Investsmart India Ltd, an initiative of Infrastructure Leasing & Financial Services (IL&FS) has already announced that it is geared to commence internet trading. ``The objective of initiating internet trading is to allow quick and easy access to valuable research and information to an investor and enable him to execute transactions faster and more efficiently, as also to provide transparency in investment dealings,'' Investsmart said.

In fact, ICICI Ltd has launched an integrated internet-based service which allows its customers to place orders for shares over theNet, make payments for them online and hold them in dematerialised form. The ICICI service, called eInvest, also gives the a free dematerialised account and a free online banking account. ``When the customer punches in a trade on his computer, the ICICI direct server will check the balance in his bank and demat accounts and will execute the trade on the exchange online," it said. Apart from ICICI and IL&FS many others will alsofollow suit.