E-Brokers Look For Banking, Depository Interface

The broking community, in tune with the craze for Internet trading, is trying to put in place the much needed banking interface executing a deal on a near real time basis.

StockMantra, the e-broking arm of city-based Keynote Capital Ltd, is among the brokers which has forged an alliance with a bank to this effect. Apart from HDFC Bank, it has also tied up with the Central Depository Services to enable their customers to deal in the demat format/

The brokerage is also planning to expand its services across the country through the franchise route. Under the arrangement, it will appoint a sub-broker who could interact with people and also provide valuable advice on investing in stocks.

 

Investmeart India, a whooly owned subsidary of Infrastructure leasing & Financail Services Ltd, is offering internet trading to its existing as well as newly registered clients. The company's website, www.investsmartinda.com, is already operational and has around 5,000 registered users, some of whom are actively trading on the Net.

Its parent company will provide the depository participant interface, while it has tied up with HDFC Bank for accessing client account with the required authorisation. The company provides technical analyses in addition to other necessary services to their clients.

Geojit Securities, it may be recalled, was the first brokerage in the country to provide Net rading to their clients. One common problem which most of the e-broking outfits might face is insufficient bandwidth. Consiering the spurt in trading expected in the coming days, most of the brokers have upgrade their system to 64-128 kbph.

It is primarily the issue of making and keeping the transaction simple while executing them through the Internet. For this, the service provider would have to be a strong backoffice set-up which would enable them to offer the service to their customer through front-end, which is nothing but the website where they could log-in.

To provide high standard of service, it is imperative for the service providers to have the necessary interfaces in place before they start offering the services to their registered users.

Some of the leading broking firms like Motilal Oswal, first Global, SSKI, K R CHoksey Shares & Securities which are planning Net intiatives are busy trying up with banks and depository participants to proviee a seamless platform for investors to trade in stocks.

Madhavi Puri Buch, chief executive officer, ICICIDirect, "We can even deal a Rs 5,000 worth trade through our website. basically, all we are doing is leveraging technology to serve the small investors who would otherwise find it difficult to trade in small volumes." Institutions such as ICICI and HDFC are at a natural advantage as they can proviee all three service under one roof.

It is for this reason that HDFC is in the process of acquiring a membership at the National Stcok Exchange and the Bombay Stock Exchange to offer webtrading facilities to its existing savings and demat account holders.