OTCEI
OTCEI
OTCEI
P.SATHISH MANAV-14MBA0074
ABHISHEK BHATTACHARJEE-14MBA0070
BINU NAIR-14MBA0068
MOHD SALMAN-14MBA0050
DANIEL MATHEW-14MBA0091
OTCEI
The OTC Exchange Of India (OTCEI), also known as the
Over-the-Counter Exchange of India, is based in Mumbai
Maharashtra. It is India's first exchange for small
companies, as well as the first screen-based nationwide stock
exchange in India. OTCEI was set up to access high-
technology enterprising promoters in raising finance for new
product development in a cost-effective manner and to provide
a transparent and efficient trading system to investors.
NEEDS
CONT
Over the counter exchange of India was started in 1992. The
OTCEI was started with the objective of providing a market
for the smaller companies that could not offered the listing
fees of the large exchange and didn't fulfill the minimum
capital requirement of listing.
The aim at creating a fully decentralized and transport market.
Over the counter exchange means trading across the counter in
scrip.
The counter refers to the location of the member or dealer of
the OTCEI where the deal or trade takes place. Every counter
is treated as trading floor for OTCEI where the investor buy or
sell.
FEATURES
NATIONWIDE TRADING
RINGLESS TRADING
TOTALLY COMPUTERISED
TRANSPARENT TRADING
ONLY AUTHORIZED DEALERS
TWO WAY OF MAKING A PUBLIC OFFER
FASTER TRANSFER AND TARDING OF SHARES
INVESTOR REGISTRATION
TRADING IN UNLISTED EQUITY SHARES
TRADING IN FUTURES AND OPTIONS AND FORWARD
CONTRACT ON STOCK
PARTICIPANTS
A company should have a minimum paid up capital of Rs.30 lakhs and the
minimum offer to the public should be 25% of the issued capital or Rs. 20
lakhs worth of shares in face value whichever is higher
Every company that intends to get listed has to be sponsored by a merchant
banker(Member/sponsor) of the exchange.
The sponsor of the issue must arrange for market makers to give buy &sell
quotes in the securities for an initial period of 18 months.
Relaxation in listing norms as compared to other stock exchanges.
CONT..
Investor
Issuer Companies
Members and Dealers
Market Makers
Compulsory Market Making
Additional Market Making
Voluntary Market Making
Sponsors
Registrars and Custodians
Central Clearing Bank
Settler
Monitoring Agencies
PROCEDURES FOR LISTING
The procedure adopted for the listing of shares at OTCEI is as follows:
Listing agreement
Certificate from auditor that the allotment letters, counter receipts and advice-
cum-refund orders have been mailed;
A certificate from the auditor that the allotment has been made as per the basis
approved by OTCEI;
Company's confirmation that all cheques for brokerage and underwriting
commission have directly been posted to members and dealers;
A copy of the newspaper announcement giving the basis of allotment as approved
by OTCEI, and
A Cheque /demand draft for the listing fee.
Listing Fee