The joint venture company - called DotEx International Ltd - will provide the necessary infrastructure for those brokers who are unable to set up their own Net trading ventures.

With an authorised capital base of Rs 25 crore, the company will be managed independently by a board of directors drawn from the two organisations.

NSE.IT will hold 51 per cent equity stake while i-flex will have 49 per cent stake, managing director of NSE R H Patil told reporters. The company will start with an initial capital of Rs 10 crore.

Patil said a total capital expenditure of Rs 100 crore is envisaged in furter expanding capacities to accomodate all brokers of NSE, with the investment being financed from internal accruals.

Initially, the platform will be used for online trading but in the future it can be used for derivatives trading, online government securities trading and other instruments, deputy MD Ravi Narain said.

The hard launch of the produdct is expected in July this year, by which time the pricing would also have been decided. "We are working on the pricing," Narain said, adding that it would be competitive. The revenue for the company will be through subscriptions and fees from brokers, and fees from banks and depository participants.

Apart from using the conventional personal computers for trading, the infrastructure will also facilitate trading through mobile phones and WAP-based (Wireless Application Protocol) devices.

Patil said this was the only technology of its type in the whole world, explaining that in terms of online trading India was leading the way. Narain added that while overseas only a part of the investor community uses the Net, in India the entire industry is expected to be dependent on it.Since it was a common platform for brokers, NSE's site (nse-india.com) would be the primary gateway for accessing the product.

For the investor community in general the new company will have an investors' forum where casual visitors can browse through the various products available and information on investment avenues and opportunities.

This will serve to whet their appetite further and go on to the actual transaction site, Satish Naralkar, executive director of NSE.IT said.Patil made it clear that the joint venture was not confined to he local borders alone and in time would also cross boundaries.

i-flex operates in 68 countries globally and has over 240 financial institutions as its customers. Incidentally brokerage firms which have already set up their own online trading ventures can also use this platform for outsourcing.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.