Over-the-Country Exchange of India (OTCEI) was incorporated in the year 1990 as a Section 25 company under the Companies Act 1956. It is recognised by the Securities Contracts Regulation Act, 1956 as a stock exchange. The purpose of the formation of OTCEI was to aid enterprising promoters in raising finance for new projects in a cost effective manner and to provide transparent and efficient mode of trading to the investors.
It is modelled along the lines of the NASDAQ market and has introduced several novel concepts to the Indian capital markets, like screen-based nationwide trading, sponsorship of companies, market making and scripless trading. Presently the exchange has 115 listings and has helped in providing capital for enterprises which have walked on to build successful brands for themselves. They are VIP, Advanta, Sonora Tiles & Brilliant mineral water, etc.
"To assist in efficient capital formation by developing a vibrant, dynamic and self-regulated capital market conferring benefits to the investors, issuers, capital market and the nation at large."
There are three types of intermediaries in this exchange.
The above three contribute to the activities of the exchange through trading and enabling listing of companies on the Exchange. Members and Dealers can carry out activities like trading, underwriting, market making and participation in bought out deals. Dealers can never sponsor an issue for listing. Sponsors can perform the function of sponsorship of issues, but they are not permitted to take part in secondary market activities.
OTCEIs Five Years Total Turnover
OTCEIs Trading in Unlisted Securities
- It is the first screen based nationwide stock exchange in India.
- It is the first exchange to introduce Market Making in India.
- It is the first exchange to introduce Sponsorship of companies in India.
- It is the only exchange which allows the listing of companies with a paid-up capital below Rs. 3 crores.
- It is the only exchange which allows the companies with less than 3 year track record to tap capital market.
- It has shifted trading from counter receipts to share certificates.
- It has introduced Weekly Settlement Cycle.
- It allows short selling.
- It allows the demat trading through NSDL.
- It has tied-up with NSCCL for Clearing.
According to the Dave Committee report in 1996, it was suggested to allow trading the equity shares of unlisted companies. The exchange has also designed trading rules and market guidelines in this context and it has also been submitted to SEBI for approval.
The exchange also proposes to introduce a vibrant and well structured and regulated market for unlisted securities trading, giving an exit option for venture capital/ Private equity, offshore funds and other institutions and corporates. This results in an improved investment opportunities in start-up enterprises, particularly in the growth sectors.
OTCEI Grievance Cells
OTC Exchange of India became the first Exchange in the country to open the Investor Grievance Cells (IGCs) at the four Metros. The cell was opened in 1993 and it handles complaints/queries from the investors against the brokers and/or OTCEI listed companies.
The investors can send an e-mail or can approach to any one of of the following grievance cell:
92, Maker Towers "F"
Mumbai 400 005
Ideal Plaza, First Floor
11/1 Sarat Bose Road
Kolkata 700 020
14-D, Atmaram House,
1, Tolstoy Marg,
New Delhi 110 001