HEADLINES
SHAREWARE
DISCUSS
POLICY POLICE
JOBS
ARCHIVES

Search Rediff

Net trading begins in India

C Sasikant

A day after the Securities and Exchange Board of India announced its regulations for Internet trading, Net trading has become a reality. Kerala-based Geojit Securities has taken the lead, starting off the process in Bombay.

Five years ago, when the NSE was started, no one expected it to give BSE a run for its money. It did just that and it changed trading in India.

Geojit Securities is a joint venture started along with Kerala State Industrial Development Corporation (KSIDC) a rare case of a state-run institution has a stake in the business. The software was developed by NSE.IT, the infotech firm the NSE floated a few months ago.

The first net transaction was a trade for 100 shares of Reliance executed by D R Mehta, chairman, SEBI, for A P Kurian, chairman, Geojit Securities.

The advantages of trading over the Net include online confirmation of trade and the pleasure of executing the transaction themselves. One can also trade from anywhere in the world. This is a step forward in bringing the capital markets closer to the investor. Initially trades can be done on the Net in selected scrips that are already dematerialised. As of now there are nearly 400 such scrips.

While Geojit is the first of the block to launch net trading there are many big players who are waiting in the wings to kick start net trading. Of which there are leading brokeragesd like Motilal Oswal, Sunidhi Consultancy, SSKI and IL&FS are also expected to announce the launch shortly.

Tell us what you think