SHCIL launches Internet trading facility

NEW DELHI, 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 in the capital by SHCIL along with State Bank of Patiala (SBP), would bring the investor's bank, broker, stock exchange and depository participants under one roof, managing director and CEO of SHCIL, Mr. B. Virupaksha Goud, told reporters here.

Investors, who do not have access to personal computers and Internet connection, could avail themselves of this facility using the request transmitting machine (RTM) installed in SBP's premises, the SBP's Managing Director, Mr. A. K. Batra, said.

``As Stockdirect brings a lot of convenience to investors, it will bring the share market to investors' pocket," he said.

Mr. Goud said SHCIL has received special permission from the Securities and Exchange Board of India 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 Madura to offer the service in Chennai," Mr. Goud said. SHCIL is the country's largest custodian of shares with the last year seeing the company holding assets worth over Rs. 900 crores.

Mr. Goud said SHCIL was planning to launch a slew of products during the next few months for attracting retail investors into their fold.

``There is a perception that SHCIL is catering only to big institutional players. We are planning to launch three to four products to attract small investors," Mr. Goud said.

The new products included `sell and share' and `purchase and settle', which would have added facilities such as allowing investors to do squaring off transactions also, he said.

The 'Stockdirect' scheme would only facilitate delivery-based transactions, for which SHCIL has tied up with a total of 18 brokers in the National Stock Exchange and the Bombay Stock bourse.

The company will also launch a product facilitating new entrants in the insurance sector to sell their schemes through the Internet.

From just four offices in 1997, SHCIL has now offices in 76 different places across the country, Mr. Goud said, adding that the corporation would open another 100 offices in the next 12 months. Before this fiscal-end, SHCIL planned to open 24 more offices, he said.

The company has also decided to do away with custody charges for shares worth up to Rs. 1 crore to attract more small investors. About 90 per cent of SHCIL deals came from this category, he said.

SHCIL has revenue of over Rs. 73,000 crores this year as compared to Rs. 28,000 crores in 1998-99. Revenue from the retail segment itself has crossed Rs. 28,000 crores during this year, Mr. Goud said.

- PTI

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