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Wave-based share trading accounts on rise

THE quantum jump in the sale of personal computers and mobile computing devices in the city during the past one year has brokerage houses running happily to the bank. Reason: There had been a quantum jump in the number of web-based share trading accounts being opened with brokerage houses in the city following the unstoppable bull run in the Bombay Stock Exchange (BSE).

india Updated: Feb 27, 2006 00:48 IST

THE quantum jump in the sale of personal computers and mobile computing devices in the city during the past one year has brokerage houses running happily to the bank.

Reason: There had been a quantum jump in the number of web-based share trading accounts being opened with brokerage houses in the city following the unstoppable bull run in the Bombay Stock Exchange (BSE).

Unofficial figures put the number of web-based share trading accounts opened in Lucknow during the past one year to be nearly 20,000. Nationally, ICICI Direct has more than 8 lakh online trading accounts and another 2 lakh accounts are with brokerage firm Sharekhan.

Ashish Agnihotri, working for a telecom major in Lucknow, had been trading on the web since early last year. “Lunch time in my office mean, I am logged on to my web-trading account and looking for the stock picks for the days. Trading on the web is totally hassle-free as every transaction has transparency, he said.

So, what is making city’s brokers sit up and take notice on the surge in the number of web-trading accounts being opened in a Tier-II city such as Lucknow? It is the number of growing investors approaching the brokerage houses to inquire about opening web-trading accounts with them every day.

“Most people who have a computer and a broadband connection now want to trade either from home or office through their web-trading accounts. The biggest advantage of the web-trading platform is that one need not repeatedly call a operator in a broking house to place orders for sale or purchase of shares,” Mradul Verma, Business Partner of Sharekhan told HT Live.

He said the other factor which had prompted a surge in the number of web-trading accounts being opened is the free ‘Net Banking’ services being provided by various banks accross the country. The shares being traded are picked up from the Demat account and transferred to the account of the buyer while the payment for the transaction reaches the seller in his bank account online as soon as the deal is over.

“We have a separate portal called ‘Karvygotrade’ which is very popular with investors trading online. While it will be difficult to provide figures on the average daily turnover from the online share trading business in city, the trend of investors trading over the internet is certainly going up every day,” commented Nitin Saxena, vice- president, Karvy Stock Broking in Lucknow.

The other players in Lucknow in the web trading space, besides Sharekhan and ICICI Direct, are HDFC Securities, Indianbulls, Kotak Securities, Motilal Oswal Group and some prominent broking houses, owned by Mumbai-based brokers, which provide a bouquet of professionally managed share trading services on the web to the investors.

First Published: Feb 27, 2006 00:48 IST