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Coimbatore June 19 SBICAP Securities Ltd has obtained licence from the Reserve Bank of India to offer portfolio management services and the product would be available to investors by September. The company plans to expand its branch network to 50 by the end of the current fiscal and would have 15 franchisees offering its bouquet of services, Mr V. Gopinathan, Managing Director, said.

He told presspersons here today that when the companybegan its operations, it focussed on institutional players. In the last two years, it has been turning towards retail players and has opened 34 branches across the country. The 35th branch and the second in Coimbatore will be opened at R.S.Puram on Wednesday.

The minimum investment required for availing of this service would be Rs 5 lakh either in the form of cash deposit or securities of equivalent value for discretionary and non-discretionary trading.

The fee structure under PMS is yet to be decided.

The company wants to increase the branch and franchisee network and become `one of the trusted players' in the securities transaction field offering competitive rates. For day trading, the brokerage charged is 0.1-0.15 per cent and for delivery based trading, it is 0.25- 0.35 per cent, depending on the value.

Mr Gopinathan said the company has 8,000 trading customers and 2,000 depository participants, apart from institutional investors. Though unwilling to disclose the volume of daily business, he said the company clocked 35 per cent annual growth in the last three years. Last year, SSL recorded a net profit of Rs 5 crore and during the current year he expects this to double. SSL is also working on increasing the share of FII business using SBI's brand value.

He said SSL has entered into a tie-up with State Bank of Indore and would be offering online trading facility to the bank's customers from June 26. The facility would be extended to customers of State Bank of Mysore from July and by the year-end, of this year, this service would be available to customers of the seven associate banks of SBI.

SSL is holding discussions with SBI and by September-end the online trading facility is likely to be available to SBI customers as well. He expects e-trading to pick up in a big way since the branch network of SBI and its associated banks is huge.

Response to IPOs

Mr Gopinathan said the mixed response to the IPOs only showed that the investors were becoming savvy and looked at the intrinsic value of scrips before investing. There is also a shift in investor population and SSL's non-metro branches are witnessing more trading volume than the branches located in metros. He said `equity cult is maturing and is spreading across'.

SSL was not looking at opening branches overseas for now, Mr Gopinathan added.

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SBICAP Securities gets nod to manage portfolios

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