Over The Counter Exchange Of India [

Submitted to, Saira.M.S Lecturer IMK Varkala

Submitted by, MAHIMA ANIL 1105525 MBA Ist Semester IMK Varkala

Contd..

Liquidity Fixed and fair price Simplified process of buying and selling Quick disposal of orders A cheaper method of public sale of new issues.

ICICI, UTI, IFCI, IDBI, SBI Capital Markets, Canara bank Financial Services, LIC, and GIC.

implies trading across the counter in scrips listed on the OTC exchange

refers to the location of the member or dealer of the OTCEI

 Easily accessible by any investor Provide greater confidence to investors because of the complete transparency in India Transactions are fast and completed quickly Ensures security, liquidity, by offering 2 way quotes, OTCEI is an investors friendly exchange with single window clearance for all investor requests

 Offers facilities to the company having a issued equity capital of more than Rs.30 lakhs Small & medium closely held company can go public Encourage entrepreneurship Company can get the money before the issue in cases of bought out deals Easy issue marketing by using the nation-wide OTCEI dealers network Nation wide trading by listing at just 1 exchange

 Companies which are sponsored can be listed Responsibilities of sponsors:

Appraising the project/company properly Valuing the scrip fairly Promoting the sales

Main function of the sponsor:

Market making- giving two way quotes for the scrip concerned

Contd...

Continues till an alternative market maker is arranged for A sponsor may appoint additional market maker(AMM) or dealer Make market in a scrip for at least 1 year continuously Both members and dealers can act as voluntary market makers
Make market in a scrip for at least 3 months

continuously

 Francis Cherunilam, Business Environment Text & Cases, Himalaya Publishing House Pvt. Ltd.,2007 T.S.Anantharaman, Emergence of Indian Capital Market, Cochin Stock Exchange Monthly Bulletin, February 1995,p. 45 E. Gorden and K. Natarajan, Capital Market in India, Himalaya Publishing House Pvt. Ltd., Mumbai,1999,pp. 172-3