OTCEI

OTCEIPrepared byP.Mani sankar

IntroductionOver the counter exchange of India was started with the object of providing market to the securities of small and medium sized companies that could not pay the listing fees and fulfill the minimum requirements of larger stock exchanges. can gain access to the capital markets through OTCEI. It is similar to the Nasdaq electronic exchanges situated in the U.S. Introduction-continuesOTCEIwas incorporated in 1990 as a Section 25 company under the Companies Act 1956 and is recognized as a stock exchange under Section 4 of the Securities Contracts Regulation Act, 1956. Introduction-continuesThe Exchange was set up to aid enterprising promoters in raising finance for new projects in a cost effective manner and to provide investors with a transparent & efficient mode of trading.Introduction-continuesModelled along the lines of the NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scripless tradingNumber of listing companiesOTCEI has 115 listings companies like VIP Advanta, Sonora Tiles & Brilliant mineral water, etc.Features of OTCEIprovide capital formation opportunities for young companies without a track recordbe national in order to reach and service entrepreneurs and investorsenable access to a wide spectrum of financial intermediariesbe cost effective for issuers

Features of OTCEIprovide an exit route to venture capital & private equity funds for their investmentsadopt state of art trading systems and practices in tune with international normsbe well regulated to promote transparent and fair market practicesSecuritiesare traded on OTCEI through the 'OTCEI Automated Securities Integrated System' (OASIS), a state-of-art screen based trading system. OASIS combines the principles of order driven and quote driven markets and enables trading members to access a transparent & efficient market directly through a nationwide telecommunication network.

Features of OTCEIThe first Indian stock exchange to introduce nationwide computerised screen-based trading.State-of-the-art, STRATUS fault tolerant computer serverTrading software modeled on TCAM softwareConnectivity through combination of satellite (VSAT) & terrestrial (lease line/dialup) modes.Excellent infrastructure/software support from CMC/TCS/HCL ComnetNetwork of Members / Dealers spread over more than 50 cities.

Promoters of OTCEIOTC Exchange of India has been co-promoted by the leading financial institutions of the country:ICICI Bank LimitedAdministrator of Specified Undertaking of Unit Trust of IndiaIDBI Bank Limited.SBI Capital Markets LimitedIFCI LimitedLife Insurance Corporation of IndiaCanbank Financial Services LimitedGeneral Insurance Corporation of IndiaThe New India Assurance Company LimitedThe Oriental Insurance Company LimitedUnited India Insurance Company LimitedNational Insurance Company Limited

Present DirectorsShareholder DirectorSr. No. NAME ORGANISATION1. Shri S. C. Bhargavan Chairman Shareholder Director of SUUT2. Shri Deepak Gupta Shareholder Director of IDBI

DirectorsPublic Interest DirectorSr. No. NAME1 Shri Omprakash Porwal2. Shri P. B Nimbalkar3. Shri R B L VaishManaging Director & Chief Executive OfficerShri Munesh Kumar GoelTrading systemPresent settlement system is T5.Certificate to be delivered to the investor with in fortnight from the date of purchase.It is decentralised and transparent market14Trading system continuesThe counter refers to the location of the members.Every counter is treated as trading floor, where investor can buy and sell securitiesEvery member should have computer,net and telecommunication facilityOTCEI member can buy and sell the securities in behalf of the clientsCompanies with minimum capital of 3 crores and maximum capital of 50 crores can apply to OTCEI 15Associates are:1).The National Securities Clearing Corporation Ltd. (NSCCL) was set up by the National Stock Exchange of India Limited (NSE), the country's largest stock exchange. It is the largest clearing house in the Indian capital markets and is responsible for settling all trades on the NSE as well as on OTCEI.

Associates of OTCEI2).National Securities Depository Limited (NSDL) set up India's first depository, to provide convenient paperless trading. With the introduction of compulsory dematerialised trading in many securities by SEBI, NSDL now plays a prominent role in the settlement of trades