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(O TCEI)
Promoted jointly-
as
Exchange-1989,
Stock
O TC EI
OTCEI was incorporated in 1990
as a Section 25 company under the
O TC EI
The Exchange was set up
1. to aid enterprising promoters in raising
O TC EI
Modelled along the lines of the
O TC EI
As a measure of success of these
O TC EI
In raising finance
Convenient,
Transparent,
Efficient
Venue for capital market
investment
O TC EI
Incorporated as per The
Association of Securuties
Dealers Automated Quotations
of USA.
Commenced Operations from
1992
O TC EI
A Two-tier Market in
India
To provide access to
O TC EI
First to Introduce:
Ringless,
Electronic National Exchange
Screen-based trading system
Listing entirely new set-up
Companies
O TC EI
Who would find OTCEI helpful:
high-technology enterprises
companies with high growth potential
companies focused on new product
development .
entrepreneurs seeking finance for specific
business projects
OTCEI, with its entry guidelines and eligibility requirements
tailored for such innovative and growth oriented companies, is
ideally positioned as the preferred route for raising funds
through Initial Public Offer (IPOs) or primary issues, in this
country
O TC EI
Companies allowed to
O ur Products
O ur Products
OTCEI is the primary Stock Exchange
Investors G rievances
OTCEI in 1993, became the first
Exchange in the country
Investors G rievances
Common Grievances
Company-related
Non-receipt of securities sent for transfer
Non-receipt of corporate benefits,
e.g.dividends/interest/bonus/rights,etc.
Non-receipt of share certificates in exchange for
counter receipts
Broker- related
Non-rectification of documents returned as bad
delivery by the broker
Non-receipt of funds/ securities on sale/
purchase
Investors G rievances
Investor Compensation Fund
OTCEI set up the I C Fund in 1995 to
compensate the claims of investors
and protect them in case of default
or loss of security.
Investor Claims
Claims can be lodged by any class of investors
Investors G rievances
Conversion of Counter Receipt
(CR) to Certificates
OTCEI ceased trading in CRs from 1st
March 1999. The Companies listed on
the Exchange are in the process of
converting the CR to share certificates.
All investors are advised to exchange
their CR into certificates.
Investors G rievances
Please write to following email address for
O TCEIO F IN D IA
Adopts two-ways public offer
O TC EI Trading
-3 types
1. Listed
2. Permitted
3. Initiated
Companies
O TC EI Trading
Starting of trading
Debt instruments-1993
OTCEI has two major Players
* Members.
* Dealers(allowed to trade in
securities in their
own Account
or on behalf of their
Clients)
O TC EI Trading
They are allowed to perform
*. Broking
*. Trading on their own account.
*. Market Making
Other Players: Registrar/Custodian
O TC EI Trading
Members allowed to be engaged in
O TC EI Trading
Sponsorship
O TCEIO F IN D IA
Sponsor is indispensible in OTCEI, as he
performs*
*
*
*
*
M arket M akers
Market Making is Unique
for OTCEI
They are Merchant
Bankers
Willing to Make Market
M arket M akers
By Continuous offering of Buy and
Sell quotes
Act as Dealers-cum-Stockist
Dont charge any brokerage
Make Profit by Spread between
TRAD IN G & D O CU M EN TS
Counter Receipts
Sale Confirmation Slip
Application Acknowledgement
Slip
Transfer Deed
Brokers
The Exchange has three types of intermediaries called:-
Members,
Dealers and
Sponsors,
who contribute to the Exchange's activities by trading and
Brokers
Key Information
Base Minimum Capital deposited
Brokers
Cash to be deposited with the Exchange- minimum
Brokers
Intra-day Limits :
Turnover Limit : Members are subject to intra-
Brokers
Gross Exposure Limit
: Members are subject to gross exposure limits.
Gross exposure, being the aggregate of the cumulative
Brokers
Margins :
a) Daily Margin
Daily margin payable by the member consists of value at Risk Margin and Mark
to Mark Margin.
member. Mark to market loss is potential loss, in case the cumulative net
outstanding position of the member in all securities at the end of day is closed
out. Mark to Market margin is calculated by marking each transaction in a scrip
to the closing price of the scrip at the end of trading. MTM Profit/loss across
different securities within the same settlement is set off to determine the MTM
loss for a settlement. Such MTM losses for settlements are computed at client
level.
Value at Risk Margin is computed for all securities in the rolling settlement. All
securities are classified into three groups for purpose of var margin