MUMBAI, JANUARY 24: E-broking (electronic-broking or stock trading via the internet) is soon going to be a reality in India. Taking the high technology to the capital market, the Securities and Exchange Board of India (SEBI) will meet on Tuesday to consider giving clearance to stock trading via the internet in the country.The SEBI board would also consider clearing guidelines for venture capital firms and corporate governance among other issues. The board would also conduct a review of the capital market in the past nine months, funds mobilisation by mutual funds, the issue of volatility in the secondary markets and the progress of rolling settlements which commenced earlier this month with 10 stocks.``Internet revolution has finally reached Indian stock markets. Even before the SEBI could finalise the norms for equity trading through internet, many broking outfits and financial institutions had firmed up plans,'' said a director of the Bombay Stock Exchange. Nearly a dozen broking outfits are in advanced stages of preparation for introducing e-broking in the country. With internet companies attracting fabulous valuations, some are even thinking of floating separate ventures for internet trading.In fact, ICICI Ltd has launched an integrated internet based service which allows its customers to place orders for shares over the internet, make payments for them online and hold them in dematerialised form. Investsmart India Ltd, an initiative of Infrastructure Leasing & Financial Services (IL&FS) has already announced that it is geared to commence internet trading. ``The objective of initiating internet trading is to allow quick and easy access to valuable research and information to an investor and enable him to execute transactions faster and more efficiently, as also to provide transparency in investment dealings,'' said an IL&FS official.Stock Holding Corporation of India (SHCIL) has launched a software product that would allow investors to conduct all stock market operations including cash payments through the internet. The product named `Stockdirect' and launched by SHCIL along with State Bank of Patiala (SBP), would bring the investor's bank, broker, stock exchange and depository participants under one roof, said SHCIL managing director and CEO B Virupaksha Goud.Marketmen expect at least 25-30 per cent of share deals to be routed through internet. ``I expect a rise in business volume once internet trading kicks off. This has happened in the US where broking firms like Charles Schwab have made their mark. Much will also depend on the cyber laws being put up in the Parliament,'' said a dealer of the National Stock Exchange.Apart from ICICI and IL&FS, others like SSKI, Motilal Oswal, Sykes and Ray, UTI Securities, Sunidhi Consultants, Ask Finance and Prime Broking are getting ready to start internet trading shortly. SEBI has asked the stock exchanges to test their systems. Not to be left behind in the race, at least one dozen more brokers and institutions are also planning internet trading.Experts feel internet trading will be a new experience for scam-hit Indian investors. ``Our only hope is that SEBI would make internet trading foolproof so that scamsters won't take advantage of the system. They are already manipulating the existing trading system without any fear,'' said an investor.
