Online Debt Trade Offered
UTI Securities Exchange Ltd (UTISEL) has entered into a strategic tieup with the Purnendu Chatterjee-promoted riskxpress.com, to offer, for the first time in India, online trading in debt securities.
The pact involves a two-way arrangement whereby, Chatterjee's company TCG will provide the content and market information for the portal, while UTISEL_a wholly-owned subsidiary of UTI_will facilitate transactions in its capacity as a brokerage firm.
UTISEL managing director M Pushpangadan said, "Through this move and several similar ones, we plan to expand the debt market. The portal will enable investors to negotiate online right down to the last paise."
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The company has also firmed up plans to offer Internet-based equity trading with special embedded features. It has also drawn up a business plan for trading in derivative instruments and has at the same time initiated efforts to promote a new venture for primary dealership in alliance with a leading bank.
The company announced its financial results for the year 1999-2000 yesterday and has reported a profit after tax of Rs 5.26 crore. Its capital market turnover stood at Rs 7,490 crore while the turnover from its wholesale debt market was Rs 6,507 crore. The board has recommended a maiden dividend of five per cent for the year under rewiew and currently has an equity base of Rs 30 crore.
Income from broking in the retail segment has increased its share of total operating income to 15.63 per cent in 1999-00 from 10 per cent in 1998-99. The institutional broking income continues to be the mainstay of the company. The income under this segment has grown by 55 per cent during the year.