GROUP 11 PRESENTATION 22 presented by group

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1. PROCEDURE OF LISTING AND TRADING ON OTC PRESENTED BY: GAURAV KUMAR SINGH RAJESH KUMAR GOLU KUMAR GOUND ABHISHEK KUMAR PRESENTED TO: DR VAIBHAV SIR

2. Over-the-counter (OTC) trading refers to the buying and selling of financial instruments directly between two parties, without the supervision of a centralized exchange. This allows for more flexibility and personalized transactions compared to exchange-traded markets.

3. The over-the-counter (OTC) market refers to the decentralized financial market where trading occurs directly between two parties, without the oversight of an exchange. This allows for greater flexibility and customization in transactions, but also less transparency and regulation compared to exchange-traded markets. In the OTC market, participants can negotiate the terms of their trades, such as the price, quantity, and settlement details. This contrasts with exchange-traded markets, where standardized contracts are bought and sold on a centralized exchange platform.

4. OBJECTIVE OF OTC TRADING ACCESSIBILITY PRIVACY FLEXIBILITY DIVERSITY EFFECIENCY RISK MANAGEMENT

5. Price Discovery OTC markets rely on dealer-negotiated prices, while exchange-traded markets have centralized order books that determine market prices . Transparency OTC markets are generally less transparent, with limited public information on trade sizes and prices. Exchange-traded markets offer more transparent pricing and trade data. Liquidity OTC markets may have lower liquidity, as trading occurs directly between dealers and counterparties. Exchange-traded markets typically have deeper liquidity with more buyers and sellers. Regulation OTC markets are subject to less stringent regulation compared to heavily regulated exchange-traded markets with strict trading rules and surveillance.

6. Flexibility OTC markets offer customizable contracts and trading terms that can be tailored to the specific needs of buyers and sellers, providing greater flexibility than exchange-traded markets. Access to Unique Assets OTC trading allows access to niche or specialized financial instruments that may not be available on traditional exchanges, expanding investment opportunities. Enhanced Liquidity The decentralized nature of OTC markets can provide better liquidity for certain assets, especially for large or complex transactions. Reduced Counterparty Risk OTC trades are often executed directly between parties, reducing the risk associated with a central clearing house or exchange.

7. OTC trading carries unique risks compared to exchange-traded markets. Counterparty risk is heightened, as there is no central clearinghouse. Liquidity can be variable, and price transparency is lower. Leverage and complex derivatives also amplify the potential for losses. Proper due diligence, risk management, and understanding the regulatory environment are crucial in navigating the OTC landscape effectively. Investors must carefully weigh the benefits against the increased risks before participating in OTC markets.

8. OTC trading presents various risks and considerations that participants should be aware of: 1. Counterparty Risk 2. Lack of Regulation 3. Price Transparency 4. Liquidity Risk 5. Operational Risks 6. Market Access 7. Credit Risk 8. Market Concentration

9. Stocks Over-the-counter (OTC) stocks are securities that trade directly between buyers and sellers, often for lesser-known or more volatile companies. Bonds OTC bond trading allows for customized terms and negotiated prices, offering more flexibility compared to exchange-traded bonds. Derivatives OTC derivatives like swaps, forwards, and options provide tailored risk management solutions not available on exchanges. Currencies The vast foreign exchange (forex) OTC market facilitates cross-border transactions and speculation on currency price movements.

10. Diverse OTC Platforms A wide range of electronic trading platforms facilitate OTC transactions, offering tailored tools and access to a global network of dealers and liquidity providers. Specialized OTC Brokers Experienced OTC brokers leverage their industry knowledge and connections to help clients access the best prices and execute complex OTC trades efficiently. Mobile OTC Trading Innovative mobile trading apps allow OTC market participants to monitor positions, execute trades, and manage their portfolios on-the-go from anywhere in the world.

11. 1 Increased Transparency Regulatory push for more disclosure and reporting in the OTC markets. 2 Technological Innovation Adoption of blockchain, AI, and automated trading to enhance OTC transactions. 3 Global Connectivity OTC markets becoming more interconnected across regions and asset classes. The future of OTC trading is poised for significant transformation. Increased transparency through regulatory reforms, technological advancements, and greater global connectivity will reshape the landscape. Innovative solutions will enhance liquidity, price discovery, and risk management in the OTC ecosystem.

12. The OTC trading market operates with less regulation compared to exchange-traded markets. However, there are still important regulatory frameworks that govern OTC transactions. Key regulators include the SEC, CFTC, and FINRA in the US, and similar bodies in other countries. Regulatory Oversight OTC trading is subject to oversight by regulatory agencies, but with more flexibility and less stringent rules than exchange-traded markets. Transparency The OTC market is generally less transparent than exchange-traded markets, with fewer reporting requirements. Investor Protections OTC investors may have fewer protections, such as limits on leverage and mandatory disclosure requirements. Navigating the regulatory landscape is crucial for OTC traders to ensure compliance and mitigate legal risks. Understanding the applicable rules and working with reputable OTC brokers can help manage regulatory challenges.

13. Understand the Market Research the unique characteristics of the OTC market, such as pricing dynamics, liquidity, and counterparty risks. Develop a Trading Plan Establish clear objectives, risk management protocols, and order execution strategies to guide your OTC trading activities. Leverage Research and Analysis Conduct thorough fundamental and technical analysis to identify opportunities and make informed trading decisions in the OTC space.

14. THANK YOU