Mumbai, June 30: HDFC Bank on Friday announced the launch of business-to-business (B2B) payment gateway for the capital market along with the National Stock Exchange. HDFC Bank along with NSE.IT, a wholly-owned subsidiary of NSE, signed an MoU for jointly working on various products, services and standards related to the securities market in India. The MoU will provide payment gateway services to NSE brokers, who will subscribe to NSE.IT's web-trading systems and clients who will operate through the proposed broker plaza being set up along with I-Flex. NSE will have a 51 per cent stake in the new company, DotEx International, with the remaining stake with I-Flex.According to NSE's deputy managing director, Ravi Narain: "The shift to Net trading will bring the entire trading room to the investor's doorstep. It will offer complete transparency of prices and also an end-to-end audit trail reducing the risk for both the investor and the broker".
Said Narain: "The broker plaza is expected to be launched by August and most of the brokers will take part in the venture except for brokers with their own net-trading product".
According to HDFC Bank's managing director, Aditya Puri: "The gateway will make it possible to make real-time on-line payment.
Net broking will make it possible for trading to reach a wide cross-section of people and will also make it cheaper. HDFC Bank will play the role of depository, cash management and also payment gateway".
Puri added that the bank would not charge anything extra towards banking transaction costs for using the gateway. Tha bank will function as an enabling mechanism - a basic architecture provider. The payment facility will not restricted to brokers registered in the plaza, but individual traders could also take benefit of this gateway". The bank expects a 50% increase in accounts and the bank will also look at other exchanges when they will be ready with their technology.
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