Presentation on OTCEI

Definition
Over the counter market is the market in which buyers trace out sellers and the sellers trace out buyers and do the purchase and sale transaction at a price and condition mutually acceptable to both of them.

Objective
To create the second strata of market in Indian capital market. To provide facilities to the companies for issuing shares at minimum cost. To increase the turnover and liquidity of the shares which are not actively traded. To provide listing facilities even to small and risky companies. To make the buying and selling procedure simple and short. To assure reasonable prices to investor To protect the small investors against the malpractices of brokers.

Incorporation
1990 As a section 25 public limited company, companies act, 1956 Fully operational September 1992 in Bombay Stock exchange under section 4, securities control regulation act, 1956 It allows listing of small and medium sized companies.

Promoters
Institutions
UTI ICICI IDBI Bank

% shareholding
20 20 17

SBI capital markets ltd. IFCI Ltd. GIC Canbank financial services limited LIC

11 8 8 8 8

Participants
Members Dealers Investors sponsors Registrar Custodian Settlement bank OTCEI SEBI Government

Business partner

NSCCL NSDL

Features of OTCEI
Ring less trading National network Fully computerized Sponsorship Investors registration Transparency in transaction Faster delivery and payments Two ways of public offer Easy access

Benefits of trading on OTCEI

Benefits to company:
Cost effective Enables listing of small companies Lower listing fees Liquidity Reach

 Benefits to investors:
Safety Transparency Liquidity Sponsorship Access Transfer

Technology
Securities are traded on OTCEI though the OTCEI automated securities integrated system (OASIS) a state-of-art screen based trading system. OASIS combines the principle of order driven and quote driven markets and enables trading members to access a transparent & efficient market directly through a nationwide telecommunication network.

Cont.
The first Indian stock exchange to introduce nationwide computerized screen based trading. Connectivity through combination of satellite (VSAT) & terrstrial (less line) modes. Excellent infrastructure/software support from CMC/TCS/HCL comnet. Network of members/dealers spread over more than 50 countries.