Ppt on otcei (1)

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1. OVER THE COUNTER EXCHANGE OF INDIA (OTCEI)

2. CONTENTS Introduction History & Achievements Features Players in otcei market Types of Public Offers Listing RequireOTCEI Advantages of OTCEI Disadvantages of OTCEI Regular Stock Exchange vs OTCEI

3. OTCEI 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 trading their securities through counters. But the OTCEI is connected through a computer network and the transactions are taking place through computer operations. Thus, the development in information technology has given scope for starting this type of stock exchange. OTCEI is recognized under the

4. INRODUCTION OTCEI, also known as Over The Counter Exchange Of India. It is an Electronic Stock Exchange which is comprised of Small and Medium sized Firms looking to gain access to the Capital Market. It was Set-up to access High-Technology Enterprising Promoters. It is Promoted by UTI, ICICI, IDBI, IFCI, LIC, SBI and more other Institutions. It was under Securities Contract Regulation Act 1956.

5. HISTORY & ACHIEVEMENTS It was Incorporated as a Company at Maharashtra on 20 th September 1990 under Section 25 of Companies Act 1956. It was Authorized Capital of 10 Crores and Paid-up Capital of 5 Crores . It was based on the Model of NASDAQ, USA. It is India’s First Exchange for Small Companies. It is the First Screen-based Nationwide Stock Exchange in India. It is the First Electronic Stock Exchange in India. De- recognised by SEBI in 31 st March 2015.

6. NEED FOR STARTING OTCEI For raising finance in cost wffwcit Company must have run for 3years and earned profit Samll and medium companies can enenlar thier resources Promoting the interest of companjes

7. The promoters OTCEI is incorporated as a company under section 25(c) of Indian companies act 1956. As per the registration norms, OTCEI will be obliged to plough back all its profits and will not be allowed to declare dividend on its share capital. The promoters are as follows. UTI SBI Capital Market ICICI Can Bank financial Services IDBI LIC IFCI GIC

8. PLAYERS IN THE OTCEI MARKET The players on the OTCEI exchange are the members and dealers. The activities of members and dealers are: Act as broker, buy and sell securities according to the instructions of investor. Market makers in securities, they quote the prices at which members are willing to buy and sell the specified no. of securities.

9. FEATURES Use of Modern Technology Restrictions for Other Stocks Minimum issued Capital Requirements Restrictions for Large Companies Base Capital Requirement for Members All India Network Satellite Facility Computerisation for Transactions Constituents

10. How transactions done The members of the OTCEI will invite companies to list on the exchange for raising capital. There are dealers who perform the dual role of a broker and market maker. A broker acts on behalf of buyer or seller, while a market maker has a responsibility to make available toe particular share in the maker for transactions and to maintain reasonable price through supply and demand forces.

11. LISTING REQUIREMENT It can’t be delist its Securities for a Minimum Period of 3 Years. Some Certain Norms to be Fulfilled by Companies for sale of equity shares or any other securities Some Issued Capital should be retained by the Promoters. (20%, for less than 3 yrs) There should be Two Market Makers as per the Guidelines of OTCEI.

12. ADVANTAGES OF OTCEI Access to Capital Increased Employed Commitment and Recruiting Power Complements Product Marketing Expands Business Relationship Facilitates Merger and Acquisition Activity Provides Flexibility in Financing It become a Count Driven and Transparent System of Trading It provide a Liquid Cash Market

13. DISADVANTAGES OF OTCEI OTCEI ,Very poor start Tarding volume were less and liquidity was poor Most of the investors were anware Lack of online communication network nation wide

14. REGULAR STOCK EXCHANGE VS OTCEI Trading Activities Minimum Paid-up Capital Membership restrictions Securities Traded Need for Market Maker Settlement Days Primary Objectives

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