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Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (322)	3/6/2000 1:29:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 494

ICICI to target stock broking industry ICICI's Internet-trading arm icicidirect.com tumbles the stock broking industry, through Internet. A large number of sub-brokers are moving to ICICI's Web-trading platform-icicidirect.com. The brokerage is quite excellent; icicidirect.com is charging 0.85 per cent brokerage per transaction. Where the transactions cost more than Rs 10 lakh, the brokerage comes down to 0.60 per cent. However, the investor would be charged 0.85 per cent itself as the sub-broker is not allowed to undercut ICICI's rates. "This means the sub-brokers can, by bringing in deals through the Internet trading platform, earn a comfortably 0.25 per cent on transactions put through on behalf of several other investors," ICICI officials said. There is no upper limit on the number of clients an account holder can service for the net trading. A sub-broker can now route the transactions on behalf of his clients directly through icicidirect.com. This service is providing greater transparency. The sub-broker also benefits in this service is that, he does not need to make phone calls and the risk of not putting through his deals at the right time by the broker, which leads to suffer on the pricing. Brokers often prefer to put through the large deals first in a buoyant market and sub-brokers, and through them small investors, are often at the receiving end. Small investors always be dependent on sub-brokers for putting through their deals as the larger brokers have stayed away from this class of investors. This was primarily due to infrastructure and risk related factors. But, with technology in the form of dematerialisation and on-line trading razing geographical boundaries, a new class of traders is set to emerge. The small investors, who still do not feel comfortable putting their deals through directly, would resort to their sub-broker, which in turn would be able to induct greater transparency in clinching deals for investors. "The response has been simply over whelming. We advertised just once in Mumbai and, given the response, we have called-off further advertising. We have been forced to install an additional server to cater to the demand that we foresee. We are also taking another review of our systems to ensure that it can cater to the significantly higher-than-targeted customer base that we appear to be headed for," official said. Source : MI Mar 4, 2000