A nanocomposite exhibiting solvent-assisted self-assemblage properties and forming microcapsule useful for guest-encapsulation and process for making the same which comprises the reaction product of a smectite-type clay and an oligosilsesquioxane from hydrolytic polycondensation of a trialkoxy aminoalkyl silane and a trialkoxy alkenyl silane dispensed in a vinyl polymer by in situ intercalative polymerisation of a vinyl monomer. A process for making microcapsule which comprises casting a solution of the nanocomposite in a suitable volatile solvent followed by evaporation of the solvent. A method for producing guest-encapsulated microcapsule which comprises casting a solution of the nanocomposite and the guest molecule in a suitable volatile solvent followed by evaporation of the solvent.