OTCEI PDF

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le) Application has been made to the OTC Exchange of India at Bombay ( hereinafter referred to as "OTCEI) for the permission to deal in, and for. OTCEI meaning, OTCEI definition, OTCEI features, OTCEI objective, parties in OTCEI, OTCEI promoters, benefits of listed company in OTCEI. Dematerialisation of Securities. National Stock Exchange. Over the Counter Exchange of India (OTCEI). Trading in Derivatives. Let Us Sum .


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Over The Counter Exchange of India (OTCEI) can be defined as a stock exchange without a proper trading floor. All stock exchange have a specific place for. echecs16.info - Download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online. OTCEI. OTC Exchange Of India (OTCEI) also known as Over-the-Counter Exchange of India based. is a recognised stock exchange under the SCR Act. takes echecs16.info counter is treated as trading floor for OTCEI where the investor buy or sell.

Large amounts ofmoney stuck in bought-outs contributed to the liquidity problem on the exchange. Many OTCEI sponsors are responsible for making a fast buck by listing bought-outs six to nine months after the deal at very high premium and then failing to support the scrip. Most members and dealers operate only as brokers and only a limited number takes up the market-making function. Institutional clients take even seven to eight days to make payment. Market operators have to commit funds for the intervening period. Other causes 1. Lack of depth which makes the market susceptible to large swings on small deals 2.

Various Stock Exchanges In India - BSE, NSE and OTCEI

The network of on-line computers provides all relevant information to the market participants on their computer screens. This allows them the luxury of executing their deals in the comfort of their own offices.

Liquidity through Market Making: The sponsor-member is required to give two-way quotes buy and sell for the scrip for 18 months from commencement of trading.

Pdf otcei

Besides the compulsory market maker, there is an additional market maker giving two way quotes for the scrip. The idea is to create an environment of competition among market makers to produce efficient pricing and narrow spreads between buy and sell quotations.

Listing of Small and Medium-sized Companies: Many small and medium-sized companies were not able to enter capital market due to the listing requirement of Securities Contracts Regulation Act, regarding the minimum issued equity of Rs.

Pdf otcei

The OTCEI provides an opportunity to these companies to enter the capital market as companies with issued capital of Rs. Nation-wide Listing: Over The Counter Exchange of India network is spread all over India through members, dealers and representative office counters.

The company and its securities get nation-wide exposure and investors all over India can start trading in that scrip.

Bought-out Deals: Through the concept of a bought-out deal, OTCEI allows companies to place its equity with the sponsor-member at a mutually agreed price. This ensures swifter availability of funds to companies for timely completion of projects and a listed status at a later date.

Over The Counter Exchange of India (OTCEI)

Companies can get the money before the issue in cases of Bought-out-deals. Small companies can get listing benefits. The OTCEI was the first ring less, electronic and national exchange with a screen-based trading system listing an entirely new set of companies of small size.

Moreover, each strip listed on the exchange had at least two market makers who continuously gave two way quotes. Market makers are merchant bankers willing to make a market in securities by continuously offering to buy and sell quotes.

Otcei over the counter exchange of india it is a

They act as a dealer cum stockiest and do not charge any commission or brokerage. Their profit margin is the spread between the bid and offer prices.

Pdf otcei

A voluntary market maker can be appointed for a period of six months. Salient Features of Over the Counter Exchange of India: Ring-less and Screen-based Trading: The over the Counter Exchange of India was the first stock exchange to introduce automated, screen-based trading in place of the conventional trading ring found in other stock exchanges.

The network of on-line computers provides all relevant information to the market participants on their computer screens. This allows them the luxury of executing their deals in the comfort of their own offices.

Pdf otcei

Besides the compulsory market maker, there is an additional market maker giving two way quotes for the scrip. The idea is to create an environment of competition among market makers to produce efficient pricing and narrow spreads between buy and sell quotations. The OTCEI provides an opportunity to these companies to enter the capital market as companies with issued capital of Rs.

The company and its securities get nation-wide exposure and investors all over India can start trading in that scrip. This ensures swifter availability of funds to companies for timely completion of projects and a listed status at a later date.