Shcil Plans Teller Machines At Banks

Retail investors from December will no longer be required to go through the hassles of calling up a stock broker for their secondary market transactions. Instead, they have to go to a bank where an automated teller machine is installed, make use of the plastic card provided by the Stock Holding Corporation (SHCIL) and enter his trade.

In case of a buy order, this machine will ensure that the investors have sufficient cash balance in his designated account before the trade is confirmed. Once the trade is executed the investor would get an immediate confirmation from the machine.

At a time when the business of custody - looking after the paper shares of large institutions - is dying, the SHCIL - India largest provider of custodial services - is making a bid for business from the lucrative retail segment.

 

If everything goes to plan these machines will be installed at certain bank branches across the country by December. "SCHIL has taken a lead in this process of making the secondary market transaction hassle-free for the retail investors," said B V Goud, managing director, SHCIL.

SHCIL Direct, as the service has been christened, is being manufactured with the help of Siemens Nixdorf. To start with, SHCIL plans to set up these machines in banks. Later SHCIL Direct will be available even at public places, said Goud.

SHCIL's decision indicates a major shift as it now plans to service retail investors. With institutional holdings being dematerialised increasingly, the firm is looking to diversify its income streams, say experts.

Each machine will approximately cost between Rs 3-4 lakh which will have to be borne by the concerned bank while the cost involved in the link up with VSAT will be borne by SHCIL.

"While we would continue to service our existing clients, we intend to shift our focus to retail clients," said Goud.

The only pre-requisite for a retail investor being that the he needs to have an account with banks with which SHCIL has already tied up. The investor would also require to have a depository participant (DP) account with SHCIL. This concept will change the manner in which retail investors look at broking and brokers.

SHCIL has already signed an agreement with Andhra Bank. It is also negotiating banks like State Bank of Saurashtra, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and Punjab and Sindh Bank.

The Central Bank and Corporation Bank have agreed in-principle. SHCIL has already placed orders for 10 such machines. Since the entire process involves the requirement of digital signature, SHCIL has sought permission from the Securities and Exchange Board of India. "We hope to get the clearance soon," said Goud.