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Now, online transaction for depository accounts

Demat account holders in India and abroad can now avail themselves of the electronic facility that has been successfully tested by the National Securities Depository Limited with the pioneer in internet trading, Geojit Securities Limited, co-promoted by the Kerala State Industrial Development Corporation.

Speed-e, an internet application that would enable online transaction for depository accounts, allows the investor to deliver the shares directly through the net from the depository participant account to the pool account of the broker.

Currently, an investor has to submit a signed delivery instruction slip to the DP for delivery of shares to the broker in case of a sale. This activity had prevented outstation investors from reaching the slip to the DP on time.

"Non-resident Indians need not leave behind powers of attorney and sit worried about their investments. NRIs as well as Indians can now issue instructions at any time of the day online through a secure gateway without any apprehensions," says C B Bhave, managing director, NSDL.

Investors who subscribe to the online facility and give the instructions through the website (http://speed-e.nsdl.com) have two options. They could either choose to identify themselves with a password or through a smart card with a PIN.

However, password users have to identify three accounts of theirs and transfer their amount only to the settlement accounts of the registered broker of a stock exchange.

"Even if the password is stolen, the credit cannot go to any other account. In case it does go to the broker's account, the investor can get back his money," adds Bhave.

"This online system basically reduces the tediousness of paper work. All that the investor has to pay for is a flat charge per year. We haven't yet decided that amount," says A P Kurian, chairman of Geojit Securities.

Indo-Asian News Service

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