The move is the first step towards the country's largest share custodian moving towards providing a state-of-the-art trading and settlement network for investors by providing a one-stop-shop facility to them.

This has been necessitated by the diminishing role of the physical share custodial business in the wake of dematerialisation which has led to SHCIL going retail through its depository participant business.

SHCIL has applied to the Mumbai Stock Exchange (BSE) for approval to be a clearing member with the bourse so that it can undertake the activity as a depository participant partner (DPP).

BSE is currently examining whether a Sebi nod is needed for providing the clearing member status to SHCIL for the role that it intends to play.

The SHCIL product will work like this. SHCIL will attain electronic connectivity with a bank or anumber of banks. It will at the same time connect itself to a few brokers.

An investor will place an order for purchase or sale of shares just in the manner in which a credit card operates. In case of a purchase order, SHCIL will check up with the bank if the investor has the funds in his account.

Once it gets the go-ahead, it will place an order for the shares through the broker. Once the deal is settled, the broker will be paid the amount and the electronic shares will be transferred into the account of the investor, which will be operational with SHCIL.

In a similar fashion, the sale of shares will be carried out. ``This is the most modern form of trading for an investor where he has no headaches and the entire procedure is handled by us on his behalf. The software for the kiosk is ready and we are currently in talks with banks to adopt the module'', said BV Goud, the managing director of SHCIL.

``As we would be undertaking the clearing activity on behalf of the investor we have sought a clearingmember status with BSE to settle trades. We hope to see the module up and running in a couple of months,'' Goud added.

However, considering that the concept is alien not just to India but also to most other countries, it might well take longer for SHCIL to get its `dream project' operational.