Prepared by

P.Mani sankar


Introduction
Over the counter exchange of India was
started with the object of providing market
to the securities of small and medium sized
companies that could not pay the listing fees
and fulfill the minimum requirements of
larger stock exchanges. can gain access to
the capital markets through OTCEI. It is
similar to the Nasdaq electronic exchanges
situated in the U.S.
Introduction-continues
OTCEI was incorporated in 1990 as
a Section 25 company under the
Companies Act 1956 and is
recognized as a stock exchange
under Section 4 of the Securities
Contracts Regulation Act, 1956.
Introduction-continues
The Exchange was set up to aid
enterprising promoters in raising
finance for new projects in a cost
effective manner and to provide
investors with a transparent &
efficient mode of trading.
Introduction-continues
Modelled along the lines of the
NASDAQ market of USA, OTCEI
introduced many novel concepts to
the Indian capital markets such as
screen-based nationwide trading,
sponsorship of companies, market
making and scripless trading
Number of listing companies
OTCEI has 115 listings companies
like VIP Advanta, Sonora Tiles &
Brilliant mineral water, etc.
Features of OTCEI
provide capital formation opportunities for young
companies without a track record
be national in order to reach and service entrepreneurs
and investors
enable access to a wide spectrum of financial
intermediaries
be cost effective for issuers




Features of OTCEI
provide an exit route to venture capital & private
equity funds for their investments
adopt state of art trading systems and practices in tune
with international norms
be well regulated to promote transparent and fair
market practices
Securities are traded on OTCEI through the
'OTCEI Automated Securities Integrated
System' (OASIS), a state-of-art screen based
trading system. OASIS combines the principles
of order driven and quote driven markets and
enables trading members to access a
transparent & efficient market directly through
a nationwide telecommunication network.

Features of OTCEI
The first Indian stock exchange to introduce nationwide
computerised screen-based trading.
State-of-the-art, STRATUS fault tolerant computer server
Trading software modeled on TCAM software
Connectivity through combination of satellite (VSAT) &
terrestrial (lease line/dialup) modes.
Excellent infrastructure/software support from
CMC/TCS/HCL Comnet
Network of Members / Dealers spread over more than 50
cities.

Promoters of OTCEI
OTC Exchange of India has been co-promoted by the leading
financial institutions of the country:
ICICI Bank Limited
Administrator of Specified Undertaking of Unit Trust of India
IDBI Bank Limited.
SBI Capital Markets Limited
IFCI Limited
Life Insurance Corporation of India
Canbank Financial Services Limited
General Insurance Corporation of India
The New India Assurance Company Limited
The Oriental Insurance Company Limited
United India Insurance Company Limited
National Insurance Company Limited

Present Directors
Shareholder Director
Sr. No. NAME ORGANISATION
1. Shri S. C. Bhargavan Chairman
Shareholder Director of SUUT
2. Shri Deepak Gupta Shareholder Director of IDBI


Directors
Public Interest Director
Sr. No. NAME
1 Shri Omprakash Porwal
2. Shri P. B Nimbalkar
3. Shri R B L Vaish

Managing Director & Chief Executive Officer
Shri Munesh Kumar Goel
Trading system
Present settlement system is T5.
Certificate to be delivered to the
investor with in fortnight from the
date of purchase.
It is decentralised and transparent
market
Trading system continues
The counter refers to the location of the members.
Every counter is treated as trading floor, where
investor can buy and sell securities
Every member should have computer,net and
telecommunication facility
OTCEI member can buy and sell the securities in
behalf of the clients
Companies with minimum capital of 3 crores and
maximum capital of 50 crores can apply to OTCEI
Associates are:
1).The National Securities Clearing
Corporation Ltd. (NSCCL) was set up by the
National Stock Exchange of India Limited
(NSE), the country's largest stock exchange.
It is the largest clearing house in the Indian
capital markets and is responsible for
settling all trades on the NSE as well as on
OTCEI.

Associates of OTCEI
2).National Securities Depository Limited
(NSDL) set up India's first depository, to
provide convenient paperless trading. With
the introduction of compulsory
dematerialised trading in many securities by
SEBI, NSDL now plays a prominent role in
the settlement of trades