Published on February 22, 2014
Committee G.S patel committee, Abid Hussain committee . Incorporated October 1990 Functioning September 1992 Capital 8 crore.
OTCEI was needed to solve the problems of small investors and company SMALL INVESTORS ACCESS DELAY IN PAYMENT LIQUIDITY & DELIVERY UNCERTAINTY REGARDING PRICES
Problems of company were: RESTRICTED ACCESS TO MARKET ADMINISTERED PRICING OF ISSUE PROBHITIVE ISSUE COST
UTI Canbank Financial services IDBI GIC
Nationwide Reach Computerised Trading Elimination of Trading Ring Executive Trading
Individuals ,partnership firms and corporate entities Have to pay one time non refundable admission fee of Rs. 2 lakhs Minimum net worth of Rs. 5 lakhs Annual subscription fee of Rs. 5,000 Adequate office space and telecommunication facilities The individual should be at least a graduate
Public Financial institutions , Scheduled banks, Mutual funds, venture capital funds. Minimum net worth Rs. 2.5 crores Must pay admission fee of Rs. 10 lakhs and Rs. 5 lakh after one year Annual Subscription fee is Rs 1 lakh Act as brokers who buy and sell securities Quote prices and perform vital function of sponsorship
Quick Settlements Transparency in Dealing Appraisal by sponsor Trading from distant locations Easy Access
An OTCEI member is appointed as a sponsor of the company`s issue. He appraises the project / company on technical, managerial, commercial, economical and financial aspects . The sponsor determines the price of the company shares offered to the public , members and dealers of the OTCEI The sponsor gets all statutory consent and compliance with all SEBI.
The sponsor registers the issue with OTCEI and places the equity The listing application has to be made to the OTCEI as per its rules and regulations After getting approved, the allotment is made. Listing fees - initial listing fee of Rs. 6000 and an annual fee of 0.05% of its subscribed capital
The company must have a minimum issued equity capital of ` 30 lakh Companies with an issued equity capital >` 30 lakh < ` 300 Lakh, the minimum public offer should be 40% of the issued capital
The companies with an issued equity capital > ` 300 lakh will follow the listing requirements and guidelines. A company with capital > ` 10 crore will not be eligible for listing. The companies engaged in investing, leasing, finance, hire-purchase , amusement parks etc are not eligible for listing
The company can go public on the OTC exchange by two methods PRIMARY ISSUE SECONDARY ISSUE
OTC Central Computer BANK Registrar Telecom Mobile PTI Computer Counter A Counter B
At present the settlement procedure has five days trading cycle Short sales and squaring up have to be done with in the trading cycle and certificate to the investors must be delivered within a fortnight from the date of purchase . It avoids the speculation Forward trading is not allowed in OTCEI This settlement procedures are different for the listed securities and the permitted securities
OTC exchange of India (OTCEI), ... OTCEI is a focussed stock exchange concentrating on innovative and high growth companies. ATTN ...
OTCEI was incorporated in 1990 as a Section 25 company under the Companies Act 1956 and is recognized as a stock exchange under ... the Indian capital ...
OTC Exchange of India; Type: Stock Exchange: Location: Mumbai, India: Founded: 1990. ... (OTCEI), also known as the Over-the-Counter Exchange of India, ...
BREAKING DOWN 'Over-The-Counter Exchange Of India - OTCEI' The first electronic OTC stock exchange in India was established in 1990 to provide investors ...
It has been promoted jointly by UTI, ICICI, IDBI, SBI Capital Markets Ltd., IFCI, GIC and Canbank Financial Services Ltd. The Government has conferred it ...
Over The Counter Exchange of India (OTCEI) The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional ...
Over The Counter Exchange of India(OTCEI) was incorporated in October 1990 under Section 25 of the Companies Act, 1956 with the objective of setting up a ...
Earlier there were so many problems like absence of liquidity, transparency, undue delay in settlement of transactions etc in trading mechanism.
Acronym Definition; OTCEI: Over the Counter Exchange of India (stock exchange)