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.

Author: Kazitaxe Moogucage
Country: Germany
Language: English (Spanish)
Genre: Politics
Published (Last): 15 October 2014
Pages: 327
PDF File Size: 1.25 Mb
ePub File Size: 6.9 Mb
ISBN: 564-5-14625-846-8
Downloads: 25935
Price: Free* [*Free Regsitration Required]
Uploader: Mujind

OTC Exchange of India – Wikipedia

The custodian or a settler is one who validates the trading documents, stores the trading documents and also arranges for the clearing of daily transaction. This amounted to loss of interest in the scrips.

Securities can be ltcei and sold via a number of exchanges in the US. There were new instruments and new institutions. Besides compulsory market maker, there are additional market maker and voluntary market maker who give two way quotes for the scrip.

For greater accessibility to the investor, the OTC Exchange has eliminated the trading ring. Dealers and Investors can take decisions on the spot more quickly than on the regular stock exchanges. The existing otdei exchanges were insufficient in infrastructure facilities to cope up with the new situation. OTCEI will give public notice as to the availability of counters where trading take place. Therefore, almost all associated costs will be eliminated.


Retains greater degree of management stability. For sale, investor watches price on OTC screen and conveys the decision to sell to the dealer. The Nasdaq is considered a stock exchange. This facilitates a more transparent, quick and disciplined market. The companies must ltcei run for minimum three years and they must have earned profit and the minimum capital requirement for listing is also quite high.

The Act specified that a minimum issued equity capital of Rs. Does it present an investing opportunity? Trading will take place through a network of computers of OTC dealers located at several places within the same city and even across cities.

Hence by promoting a new Stock exchange with flexible conditions, the small and medium companies in India ltcei be able to raise sufficient capital.

This was the first exchange in India to otceu market makers ofcei, which are firms that hold shares in companies and facilitate the trading of securities by buying and selling from other participants. With a shift towards manufacturing and services, India itcei be the next emerging market superstar. Here’s a sneak peek into the factors that collapsed the prospects of BRIC nations. 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.

OTC also refers to debt securities and other financial instruments, such as derivativeswhich trade via a dealer network. It will list an entirely new set of companies, sponsored by members of the OTC Exchange. Thus, the development in information technology has given scope for starting this type of stock exchange.


OTC Exchange of India

But the OTCEI is connected through a computer network and the transactions are taking place through computer operations. The investors could not understand at what prices their shares are sold or bought since there is no clear-cut display of the quotations. Further, the investor actually gets the delivery of the scrip or the payment for the scrip sold within 7 days.

Unlike other stock market, OTCEI does not have any special counters and it is an electronically operated stock exchange. The dealer confirms the deal and blocks the scrip on OTC computer. What led the much touted BRIC economies to fail?

All stock exchange have a specific place for trading their securities through counters.

Investors will be required to submit transfer deeds to any of the OTCEI counters for transferring the shares in their names. Provides greater confidence and fidelity of trade.

Brokers and dealers usually have a tendency to pursue a handful of blue chip securities which are most profitable.

Investors are benefited by this as it enhances the liquidity of the scrips listed on the OTC Exchange. Small and marginal investors have been suffering from delays in settlements and transfers. Investor visualizes the price on OTC screen placed in the office of every dealer.