George Smith
Alexander
Mumbai, June 30: HDFC Bank on Friday announced the launch
of business-to-business (B2B) payment gateway for the
capital market along with the National Stock Exchange.
HDFC Bank along with NSE.IT, a wholly-owned subsidiary of
NSE, signed an MoU for jointly working on various
products, services and standards related to the securities
market in India. The MoU will provide payment gateway
services to NSE brokers, who will subscribe to NSE.IT's
web-trading systems and clients who will operate through
the proposed broker plaza being set up along with i-flex.
NSE will have a 51 per cent stake in the new company,
DotEx International, with the remaining stake with i-flex.
According to NSE's deputy
managing director, Ravi Narain: "The shift to Net
trading will bring the entire trading room to the
investor's doorstep. It will offer complete transparency
of prices and also an end-to-end audit trail reducing the
risk for both the investor and the broker".
Said Narain: "The
broker plaza is expected to be launched by August and most
of the brokers will take part in the venture except for
brokers with their own net-trading product".
According to HDFC Bank's
managing director, Aditya Puri: "The gateway will
make it possible to make real-time on-line payment.
Net broking will make it
possible for trading to reach a wide cross-section of
people and will also make it cheaper. HDFC Bank will play
the role of depository, cash management and also payment
gateway".
Puri added that the bank
would not charge anything extra towards banking
transaction costs for using the gateway. Tha bank will
function as an enabling mechanism - a basic architecture
provider. The payment facility will not restricted to
brokers registered in the plaza, but individual traders
could also take benefit of this gateway". The bank
expects a 50% increase in accounts and the bank will also
look at other exchanges when they will be ready with their
technology.
Copyright © 2000 Indian
Express Newspapers (Bombay) Ltd.
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