SBI chief A.K. Purwar (left) and SBI Capital Markets MD and CEO Indrajit Gupta in Mumbai on Thursday. (Fotocorp)

Mumbai, Sept. 29: SBI Capital Markets today ventured into stock broking by floating SBICAP Securities Ltd (SSL), which will offer services to both institutional and retail clients.

The new outfit comes at a time when the markets are on a high with the sensex breaching the 8700-mark in intra-day trade on Thursday. SSL is likely to prove a tough competitor to ICICI Direct, HDFC Securities and Kotak Securities as it can leverage the huge client base of SBI.

SBI Capital Markets has so far been offering equity brokerage to institutional clients like foreign institutional investors, mutual funds, insurance companies and banks.

SSL plans to set up retail broking centres (RBCs) in about 50 cities and towns, including metros, over the next two years. The company will start with 12 centres and expand to 30 by March next year.

According to SBI chairman A.K. Purwar, these centres will be brick-and-mortar selling points. He said over the next one year, SSL will have state-of-the-art e-broking facilities. At present, customers have to either walk in or phone to place their orders with the dealers at the retail broking centres.

SBI Capital Markets managing director and chief executive Indrajit Gupta said, ?While the company will focus on the issuer side of the investment banking business, its new subsidiary would target the investor side and enable us to have the necessary market feel.?

He said the new entity will operate both in the equity cash and futures markets. It will offer broking services, sales, portfolio advice and research. The entity has already obtained a portfolio management service licence and it will offer this service at a later date. SSL will also apply soon to become a depository participant.