Kochi-based Geojit Securities, is set to become the first brokerage company to launch Internet trading here tomorrow. However, trading across the Net is not exactly a new phenomenon, as Stock Holding Corporation of India Ltd (SHCIL) already has a product in existence which facilitates trading through the Net.

Christened Stockdirect, it enables investors to place orders on the SHCIL website. The order is then routed through brokers who are empanelled with SHCIL. As in the order routing system, approved by the Sebi board last week, the clients have to necessarily register themselves with any of the empanelled brokers. B Virupaksha Goud, chairman and managing director of SHCIL said that technically, SHCIL is the first market intermediary to offer trading "through the Internet."

Goud said that already, 350 members have signed on for this facility, which was launched in Mumbai last Saturday. Around 20 trades per day are facilitated through this route, he said which includes investors from overseas - that is, Australia, Dubai and Muscat among others.

The advantage with this route is that according to agreement between SHCIL and the empanelled brokers, the latter have to execute any number of shares which the client places an order for, even if for only one share, so that really small investors can benefit from this arrangement.

Investors with Internet connection first have to open an account with SHCIL as well as a cash account with a bank. SHCIL then supplies the investor with the necessary software to load on to their personal computers. A special floppy is also provided along with password (identification) which enables access to SHCIL's website where the buy/sell orders can be placed.

SHCIL has fixed the brokerage at a nominal 0.5 per cent for Indian investors and one per cent for non-resident Indians (NRIs). Investors can also log in through a smart card encryption and an ID provided by SHCIL. Goud said settlements are the responsibility of SHCIL.

Incidentally, those investors who do not have access to computers or Internet access can use SHCIL's Request Transmitting Machine (RTM), which are set up in various offices around the country. SHCIL, not being a stock broking house, can not directly execute trades in the market, but it has provided brokers with the necessary platform to do so. Goud said that this gives them a definite advantage and edge over brokers who will commence Net trading only now.

At present, SHCIL is not connected to any of the stock exchanges, since so far, exchanges were not allowed any part in Internet trading, but Goud said that for the future, their aim would be to integrate banks, brokers, stock exchanges, depositories and depository participants to provide a seamless trading platform.