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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The registrar and transfer agents ensure share transfers and allotments of shares and also inform the developments of various companies in the market.

This amounted to loss of interest in the scrips. This enables widely dispersed trading across cities, resulting in greater liquidity. All stock exchange have a specific place for trading their securities through counters. No company with the issued equity share capital of more than Rs.

This privilege has been given to the company by the Central Government. OTC options, traded in the over-the-counter market, allow negotiation Investors may get a greater sense of security because researchers have been researched and members to get their considered opinion. It started functioning in Those having proper infrastructural facilities like telephone, computers, telex, fax, office space and other networks would also be given due weightage and preference. Thus, the development in information technology has given scope for starting this type of stock exchange.

Members will be required to maintain a minimum base capital of Rs. It will list an entirely new set of companies, sponsored by members of the OTC Exchange.


Preference would be given to professionals and people having experience in the field with sound network.

Restrictions for other stocks: Restrictions for large companies: The exchange allows dealers to quote, ohcei and transact through a central OTC computer using telecommunication links. It has a national network and there is no geographical barrier for listing.

OTC Exchange of India – The exchange for Technology and Growth Stocks.

Base Capital requirement for members: The Indian capital market has witnessed sweeping changes over the last few years. Shares will be automatically transferred in the name of the investors, if the consolidated holding of the shares does not exceed 0.

Once these companies enlarge their resources, they can list themselves in the regular stock exchanges. There are dealers who perform the dual role of a broker and market otcek.

OTC Exchange of India

The market making system will have two way prices which are quoted regularly to provide sufficient opportunity for investors to exit. The aspirants would also have to pass a computer -based written test.

OTC Exchange will create a nationwide network, where investors will be serviced who will form the captive investor base for otceei. The sponsor makes thorough appraisal of the project, resulting in investors getting a choice of quality companies. Unlike other stock exchanges, the OTC Exchange has a nationwide reach.

OTCEI | Definition | Need | Features | Listing requirements

Enables transactions to be completed quickly. In fact, any company with an issued capital of more than Rs. This ensures swifter availability of funds to companies for timely completion of projects and a listed status at a later date. He knows he is trading scrips at the right market price. But the OTCEI is connected through a computer network and the transactions are taking place through computer operations.


Companies thus, have the unique benefit of nationwide listing and trading of their scrips by listing at just otce exchange, the OTC exchange. Computers at each counter enable to dealers to enter various transactions or queries or quotes through a central OTCEI computer, using telecommunications links. Investors can settle the deals across the counter and the money or scrip proceeds from the deal will be settled in a matter of days if not earlier. Moreover, small and newly incorporated companies had the problem of raising capital through ltcei public issue otei exorbitant costs and delays involved in realization of proceeds.

OTCEI commenced its operations in The companies that seek listing on the OTC Exchange have to approach one of the members appointed by the OTC for acting as a sponsor to the issue.

Small otcsi marginal investors have been suffering from delays in settlements and transfers. Further, the investor actually gets the delivery of the scrip or the payment for the scrip sold within 7 days.

The existing stock exchanges otcek insufficient in infrastructure facilities to cope up with the new situation.