Online trading Safe for NRI Investors

At a high-profile launch, Indian firm UTI Securities Limited and its associate company in Bahrain, Indo-Gulf फिनान्सिअल सेर्विसस Limited, explained the benefits of their new audience of business figures। Promoting the website usectrade as valuable means for NRIs to oversee their portfolios, investors were told the volume of stock transactions made online will soon overtake that of those conducted through a broker।

"There are a lot of disadvantages in conventional trading, as far as the communication part is concerned," UTI Securities vice-president and e-brokering head Rakesh Singh told the GDN। "Typically a broker handles a number of customers and this can range from 30, to 50, to 100। "Suppose a customer calls a broker at a particular time, but a broker only has three or four lines and if he has 100 customers then 100 people could be calling him at a similar time.

"But in ऑनलाइन त्रदिंग the customer can trade at ease in their home, in a cyber-cafe, or by using the internet in their offices," he added. High returns on investments in recent years have seen the number of NRIs investing in stocks increase, said Mr Singh He said that the new website would offer an easy to use means for investors to acquaint themselves with the Indian market. "It's basically an online त्रदिंग product whereby customers do not have to call any broker or anything, the customer can just log-in to the site and make investments in products ranging from equity investments, to Initial Public Offerings (IPOs) and mutual funds," he revealed.

The site charges a flat ब्रोकेरागे fee of 0.5 per cent including1 transaction costs, a competitive rate compared to some brokerage houses, which charge 1.25pc, said Mr Singh. He said that Bahrain was the financial hub for the entire Gulf region and an upcoming market. "As far as the population is concerned, 25 per cent of the population in Bahrain are Indians, so we are looking out for these customers," said Mr Singh. "There are a lot of NRIs based in all the GCC countries, and the biggest market to date was Dubai, but now Bahrain is going to be the financial hub for the entire Gulf so there will be a lot of investment from here."

Indo Gulf Financial Services Ltd is licensed by the Central Bank of Bahrain as a category two investment business firm. Mr Singh outlined ambitious plans for the firm, revealing it had set itself the target of having 500 NRI customers in Bahrain after one year, and giving an insight into the growing influence of online trading. "In 2003 the online trading accounted for only four per cent of the market, and now it has increased to 27pc," he said. "At the moment, there is a 100pc increase every year in the online trading population."