Meaning: -OTCEI is the abbreviation of Over the Counter
Exchange of India. This is the country’s first ring less and scrip less
electronic stock exchange where trading
of the securities is done on the computer through a networking of the
computers. OTCEI was incorporated
under the provisions of section 25
of the companies Act, 1956, with the
intention to protect the interest of small investors and small companies. Small
companies find it difficult to get their shares and debentures listed on stock
exchanges. As a result their securities become untradeable and lack liquidity. OTCEI was established in October 1990, and was promoted by a
consortium of financial institution.
FEATURES:
1. OTCEI
provides trading
facilities in the securities of small companies which could not meet the
listing requirements of stock exchange.
2. It has nationwide coverage through its
dealers.
3. It offers ringless and screen based trading
through fully automated system. Transactions are made through satellite
communication network.
4. Small companies with a paid up capital
between Rs. 30Lakh and Rs. 25 Crore are eligible for listing of OTCEI. Companies listed on any other
recognised stock exchange cannot be listed on OTCEI and vice-versa.
