OTCEI was incorporated in as a Section 25 company under the Companies Act and is recognized as a stock exchange under Section 4 of the. 4 Oct OTCEI meaning, OTCEI definition, OTCEI features, OTCEI objective, parties in OTCEI, OTCEI promoters, benefits of listed company in OTCEI. OTCEI definition, its need and special features, guidelines or rules laid down by OTCEI regarding listing of securities by companies are discussed here.

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Investor conveys decision of purchases to the dealer. OTCEI is recognized under the Securities Contract Regulation Act and so all the stocks listed in this exchange enjoy the same benefits as other listed securities enjoy.

In dealer networks, this may not be the case, given less transparency and less stringent regulation on these exchange. Securities can be bought and sold via a number of exchanges in the US.

Through the concept of bought-out deals, OTCEI allows companies to place their equity meant to be offered to the public with the sponsor -member otcie a mutually agreed price.

Investor makes a cheque for the amount. Any person or Indian citizen can apply for dealership or membership of the OTC provided he adheres to the prescribed conditions.

Difference between regular stock exchange and OTCEI

It is the settler who gives the net monetary position of each member with regard to the market as a whole. The Pherwani Committee has identified the shortcomings of the existing stock exchange system as follows and recommended establishment of OTCEI which has tried to address the following issues: This amounted to loss of interest in the scrips.


What led the much touted BRIC economies to fail? It will otcfi an entirely new set of companies, sponsored by members of the OTC Ofcei.

Over-The-Counter Exchange Of India – OTCEI

Unlike other stock market, OTCEI does not have any special counters and it is an electronically operated stock exchange. Investors can settle the deals across the counter and the money or scrip proceeds from the deal will be settled in a matter of days if not earlier. Hence by promoting a new Stock exchange with flexible conditions, the small and medium companies in Otcdi will be able to raise sufficient capital.

Facility for trading will be available after the offer at the counters of the sponsor and the additional Market Maker addresses will be given in the new issue application attached to offer for sale document OSD and with all the dealers of OTCEI.

This facilitates a more transparent, quick and disciplined market.

Difference between regular stock exchange and OTCEI

Enables transactions to be completed quickly. OTCEI is a computer based screen system exhibiting the quotations of the scrips of the companies of different industries of the nation. This was the first exchange in India to introduce market makerswhich are firms that hold shares in companies and facilitate the trading of securities by buying and selling from other participants. Investor can look up the prices displayed at each OTC counter. Unscrupulous brokers often exploit investors out of their ignorance.

It is a great boom to the small and marginal investors who are greatly neglected till today.

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The companies that seek listing on the OTC Exchange have to approach one of the members appointed by the OTC for acting as a sponsor to the issue. OTCEI commenced its operations in Buy and sell orders of over-the-counter OTC securities take place through market makers who carry an inventory of securities May investors and companies cite BRIC as a source of foreign expansion opportunity, due to lower labor costs.

Knowing how the primary and secondary markets work is key to understanding how stocks, bonds and other securities are traded.

OTC Exchange of India

OTC Exchange will help spread the stock exchange operations geographically and integrate capital market investment into a forum. The Indian capital market has witnessed sweeping changes over the last few years.

The corporate office is situated in Bombay. This system also ensures that transactions are done at the best prevailing quotation in the market.

In fact, any company with an issued capital of more than Rs. In many number of occasions they just cannot get their shares en-cashed.

For greater accessibility to the investor, the OTC Exchange has eliminated the trading ring.

The aspirants would also have to pass a computer -based written test.