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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These have facilitated higher liquidity and better information sharing.

OTCEI | Definition | Need | Features | Listing requirements

In fact, any company with an issued capital of more than Rs. But the OTCEI is connected through a computer network and the transactions are taking place through computer operations. Investors may get a greater sense of security because researchers have been researched and members to get their considered opinion. Enables transactions to be completed quickly.

Knowing how the primary and secondary markets work is key to understanding how stocks, bonds and other securities are traded. Investor visualizes oteci price on OTC screen placed in the office of every dealer.

The Indian capital market has witnessed sweeping changes over the last few years. Securities can be bought and sold via a number of exchanges in the US.

India’s cost-of-living ranks among the lowest in the world, but retiring there presents some challenges unrelated to finances.

OTCEI: Concept and Advantages | India | Financial Management

This enhances fund raising power substantially. There are about odd companies listed on the Indian stock exchanges. OTC Pink is the lowest tier of the three marketplaces for trading India’s largest stock exchange is hitting its stride.

Investors will be required to submit transfer deeds to any of the OTCEI counters for transferring the shares in their names.


Investor conveys decision of purchases to the dealer. OTC also refers to debt securities and ootcei financial instruments, such as derivativeswhich trade via a dealer network.

There are dealers who perform the dual role of a broker and market maker. Provides definite liquidity to investors.

It has a national network and there is no geographical barrier for listing. 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.

Provides greater confidence and fidelity of trade.

Many small companies in India are finding it difficult to raise adequate capital through Stock Exchanges as the conditions stipulated by them could not be fulfilled. Moreover, small and newly incorporated companies had the problem of raising capital through a public issue at exorbitant costs and delays involved in realization of proceeds. Here, we provide a detailed breakdown of its GDP.

Provides method of raising funds through capital market instruments which are priced fairly. The Act specified that a minimum issued equity capital of Rs. Once these companies enlarge their resources, they can list themselves in the regular stock exchanges.

Base Capital requirement for members: The trading mechanism brings out these features of the system. The companies must have run for minimum three years and they must have earned profit and the minimum capital requirement for listing is also quite high.

OTC Exchange of India

Restrictions for large companies: The method of sponsors pricing the scrips with members of OTCEI who will in turn, off — load the scrips to public will obviate the need for a public issue as we know them today. It is the settler who gives the net monetary position of each member with regard to the market as a whole.


Many investors are bullish on India for all oteci right reasons.

For greater accessibility to the investor, the OTC Exchange has eliminated the trading ring. This enables widely dispersed trading across cities, resulting in greater liquidity. But day to day transactions are carried out in only of them and the remaining companies have no liquidity at all. The companies that seek listing on the OTC Exchange have to approach one of octei members appointed by the OTC for acting as a sponsor to the issue.

Investors are benefited by this as it enhances the liquidity of the scrips listed on the OTC Exchange. The Nasdaq is considered a stock exchange. Hence by promoting a new Stock exchange otceii flexible conditions, the small and medium companies in India will be able to raise sufficient capital. In the past, many small and medium sized companies were not able to enter the capital market, due otcfi the listing requirement of the Securities Contract Regulation Act, The sponsor-member requires day quotes buy and sell for the 12 months from the date of commencement of trading.

OTCEI: Concept and Advantages | India | Financial Management

Dealers and Investors can take decisions on the spot more quickly than on the regular stock exchanges. It started functioning in BRIC refers to the notion that by China and India will become the world’s dominant suppliers of manufactured goods and services, while Brazil and Russia will become similarly dominant as otcfi of raw materials.

OTCEI commenced its operations in