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SHCIL to appoint global consultant for product mix

Our Bureau

HYDERABAD, Aug. 28

THE board of directors of Stock Holding Corporation of India Ltd (SHCIL) has decided to appoint an international consultancy firm to obtain detailed suggestions on the innovative product-mix and business strategies for the future. The aim is to successfu lly meet the growing competition in the fast changing financial scenario and to emerge as the financial super sarket in the country.

Disclosing this at a press conference here today, the SHCIL Managing Director and CEO, Mr. B. Virupaksha Goud, said the corporation was currently in the process of shortlisting the global consultancy firms and the detailed terms of reference would be fin alised shortly.

Denying any move to restructure the operations of SHCIL, Mr. Goud said the consultancy firm would focus mostly on advising a sound financial product-mix and business strategies. The consultancy firm would also suggest the timing of the initial public of fering being proposed by SHCIL. It expected the entire process to be completed in the next couple of months.

Stating that SHCIL understood that information technology would be the key driver of growth in future Net-economy, Mr. Goud said the corporation had already launched its online services through its Web site, www.online.stockholding.com. It also proposed to distribute mutual funds through the Web site shortly.

``With a view of emerging as the financial super market in the new millennium, we have identified distribution of financial products as a thrust area. To expand our range of services and maximise the use of existing infrastructure, we have already starte d distribution of mutual funds, arranging loans against shares and distribution of government securities. We also intend to take up marketing of PSU bonds, insurance products, triple A-rated fixed deposits and consumer loans. Further, SHCIL is in the pro cess of finalising its plans to launch co-branded credit cards and debit cards in association with a couple of banks'', Mr. Goud said.

Ties up with Andhra Bank for `Stockdirect'

SHCIL, a depository participant, has entered into an alliance with Andhra Bank to offer to the investors Stockdirect, a product to facilitate share trading through the Net.

Stockdirect envisages integration of investors' bank, broker, stock exchange, depository and investors' depository participant account under one roof. Even those investors who do not have access to personal computers and Internet connection can avail the services of Stockdirect using Request Transmitting Machine (RTM) installed in the premises of the bank. The product also offers smart card facility to ensure extra safety to the transactions. A nominal brokerage of 0.5 per cent is being charged on the s ervice.

SHCIL proposes to offer the Stockdirect services by setting up RTMs at around 25 centres across Andhra Pradesh in alliance with Andhra Bank over a span of one year.

Addressing presspersons on the eve of installing the first RTM at Andhra Bank's R.P. Road branch here on Monday, Mr. Goud said the corporation was aiming at bringing the share market to investors' pocket through innovative use of information technology.

The Andhra Bank Chairman and Managing Director, Mr. B. Vasanthan, said that this would go a long way ``in strengthening our service to the investors in this region''.