OTC Exchange Of India

OTC Exchange Of India also known as Over-the-Country Exchange of India or OTCEI was set up to access high-technology enterprising promoters in raising finance for new product development in a cost effective manner and to provide transparent and efficient trading system to the investors.

History

OTC Exchange Of India was founded in1990 under the Companies Act 1956 and got recognized by the Securities Contracts Regulation Act, 1956 as a stock exchange. It has a pattern along the lines of the NASDAQ market and has introduced several innovations to the Indian capital markets like:

1. screen-based nationwide trading
2. sponsorship of companies
3. market making
4. scrip less trading

Among important listed companies under the OTC Exchange Of India are VIP, Advanta, Sonora Tiles & Brilliant mineral water, etc.

OTC Exchange Of India Brokers

There are three types of intermediaries-

1. Members
2. Dealers
3. Sponsors

Services of OTC Exchange of India

OTC Exchange Of India introduced certain new concepts in the Indian trading system:

1. screen based nationwide trading known as OTCEI Automated Securities Integrated System or OASIS
2. Market Making
3. Sponsorship of companies
4. Trading done in share certificates
5. Weekly Settlement Cycle
6. Short Selling
7. Demat trading through National Securities Depository Limited for convenient paperless trading
8. Tie-up with National Securities Clearing Corporation Ltd for Clearing.