BANGALORE: India has joined the select group of countries in the world with
the official launch of Internet-based stock trading on Tuesday. Geojit
Securities Ltd. (GSL) is the first securities firm to offer this service in the
country on the National Stock Exchange (NSE). Securirities and Exchange chairman
D.R. Mehta inaugurated the service.
Speaking on the occasion, Mr Mehta said that stock exchanges should be ready
to commence derivatives trading in four to six weeks after the notification and
this would take India a step closer to being accepted as a major market in the
world. The Kochi-based Geojit Securities on Tuesday kick-started Internet
trading, becoming the first broking outfit in the country to offer this service.
Commenting on the advantages of Internet trading, he said that it would not
only broadbase retail interest across the length and breadth of the country, but
bring down the cost of transactions tremendously. Network security protocols
specified by the SEBI apart, once cyber laws come into place, the system would
be further strengthened. Geojit's Internet trading module allows an investor to
trade from any where in the world as long as they have access to a PC and a
TCP/IP Internet connection.
The module will provide live market watch from the exchange directly. An
investor will be able to place, modify, cancel or confirm the orders directly on
the Web using this module, which has been developed by NSE.IT. NSE.IT managing
director Ravi Narain said that, the IT outfit will serve as a vehicle not only
to develop new products for NSE's members but help change the face of the
securities industry as a whole. While NSE managing director Dr R.H. Patil said
that, given that the banking interface was yet to come into place, brokers to
some extent will have to take steps to protect themselves.