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Net-based trading started in India

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CIOL Bureau
New Update

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.

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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.

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