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Online depositories
make trading easier for investors
Nitin
Mathur
New Delhi, Jan 7: Online trading, online banking and
now the launch of online depository service have streamlined
the process of trading in shares. About seven depository participants
(DPs) including Geojit Securities, Gogia International Securities,
Abhipra Capital and Alankrit have gone online in the past two
weeks, according to Mr VD Agarwal, president of Depository Participants
Association of India (DPAI).
Mr Satish Gogia, managing director of Gogia International Securities,
which is one of the first broking house to provide the service
said, ‘‘The facility eliminates paper work and benefits investors
as they don’t have to to go to the broker or send delivery instructions
for transfer of securities. They can now submit the instructions
online through the Internet.’’ He also added that with T+3 settlement
in place in near future, the facility will be helpful as it
saves time, besides being convenient.
Mr Agarwal, who is also the chairman of Abhipra Capital, however,
added, ‘‘Since the volumes in the market are presently not high,
the DPs are fussy about making additional expenditure. However,
seven DPs have started the facility and more may follow soon.’’
Speed-e, the net-based delivery instruction mechanism launched
by the National Securities Depository Ltd (NSDL) is meant for
both clearing member and investors. It enables the demat account
holder to submit delivery instructions to the depository participant
through the Internet in a secured manner from anywhere in the
world. The facility will be specially helpful for the non-resident
Indian investors.
Besides breaking the geographical and time barriers and removal
of manual intervention, the system is also secure. The system
incorporates security features which insure safety in the transmission
of delivery instructions. Mr Agarwal said, ‘‘The product has
enough security. However, improvements may have to be made when
it comes into use.’’
The product is expected to attract more clients .
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