ICICI Web Trade-Online stock trading site slated to open 1st week of March.
ICICI Web sets margin-based trading terms
(Saturday, February 5, 2000)
Amit Prasad in Mumbai
ICICI Web Trade, the ICICI group company focussing on Internet-based stock trading, would be offering margin-based trading to only those who register initially to trade online on a cash basis.
The online trading site which is slated to open in the first week of March would be initially allowing trading only on a cash basis which means the equivalent trading amount should have been deposited with the bank.
According to Madhabi Puri Buch, chief executive officer of the company, although there would be no such rule, "it would certainly be a more comfort providing route for the company."
"This kind of a step has been envisaged mainly due to the high risks involved in marginal trading. Customers' buying behaviour and credit history would already be known, if they are already trading with us on a cash basis, the uncertainty would be reduced," she added.
By March end, the company would have already put in place the requisite systems for marginal trading. However, the due diligence procedure would take some time and trading on margins is likely to be allowed only after around three months.
The web site icicidirect.com would be the first of its kind to provide both trading and settlement online. The issue of settlement is especially of major significance as it is mostly done manually in the country.
Currently, the venture awaits approvals from National Stock Exchange who would be testing their systems on February 9 and February 10. On obtaining the necessary approvals from NSE, the company would permit opening accounts.
Margin limits have not yet been decided as the company would be first gauging market behaviour and accordingly set margins. |
