features of OTCEI 1. nationwide trading2. ringless trading3. compulsory investor registration4. transparent trading5. Please see the related links for an explanation of OTCEI. 3. Features of OTCEI Ringless and Screen-based Trading The OTCEI was the first stock exchange to introduce automated,screen-based trading in place.

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Investors may get a greater sense of security because researchers have been researched and members to get their considered opinion. Towards this end, all securities purchased must be held for a minimum period of 60 days before they are sold. Members will not conduct deals except under the limits, Rules and Regulations that would be announced by the OTC Committee from time to time. Merge this question into.

Every applicant desiring to be appointed as a Member of the Exchange shall make an application to the Exchange to that effect alongwith such fees, deposits and other monies in such form and in such manner as may be specified by the Exchange from time to time.

If Member is declared defaulter by other recognised stock exchange; or. A Member shall, in the opinion of the OTC Committee, be deemed guilty of unbusinesslike conduct for any of the following or similar acts or omissions, namely: Dealings effected by Electronic Media.

The market makers continually tunctions companies and provide information about them to their investors, thus helping investors to make an informed investment decision.

OTCEI: Concept and Advantages | India | Financial Management

Accounts Of Default Committee. Any profit arising therefrom shall be paid to the client after deducting service charges.

In OTCEI the company will be able otdei negotiate the issue price with the sponsors who will market the issue. Such deposit shall release the depositing Member or Members from all further liability and obligations to the defaulting constituent in respect of the monies and securities deposited by it or them. The system must support types or classes. Market Makers shall notify the Exchange functjons the commencement of making market in every security by giving notice in writing to the Exchange.


It is a great boom to the small and marginal investors who are greatly pf till today. It became fully operational in with opening of a counter at Mumbai. Can you explain how a cell’s features are related to the cell’s function? If he fails to abide by the arbitration award as laid down under the Bye-laws and rules of the Exchange; or.

OTC Exchange of India – Wikipedia

Average daily turnover of BSE is near Rs. The defaulter shall submit to the Default Committee such statement of accounts, information and particulars of its affairs as the Default Committee may from time to time require functios if so desired shall appear before the Default Committee at its meetings held in connection with its default. A reference may be decided by the Arbitration Committee on the written statements of the parties. Lien on Margin of Members.

Brokerage and Commission on Applications. Upon functionss SGF Committee of the Exchange being satisfied that the value of the Fund is sufficient for the Fund to become operational which value shall not be less than the value mentioned in clause 08 of this chapterit shall specify a date as the date on which the Fund becomes operational or delegate the power to specify such date to the Managing Director of the Exchange.

Funtcions the Member Selection Committee decides to refuse Membership to any applicant, then they may state their reasons for such a decision in writing and may also give the concerned applicant a reasonable opportunity of being heard before refusing Membership to it. During the effectiveness of such restrictions, no members or dealers shall, for ufnctions account of any client, engage in any transactions in contravention of such restrictions.

Utilisation of the Fund in case of default. The Member may, in its absolute and uncontrolled discretion, decline to accept any such instructions or orders for execution wholly or in part and shall not be bound to assign any reason therefor. In the NSE, the available system provides complete market transparency of trading operations lf both trading members and the participates and finds a suitable match.

This enhances fund raising power substantially. All other disputes between them shall also be referred to arbitration in the same manner but if the authorised signatory, employee or other person sharing brokerage so desires such disputes may be, with the permission of the OTC Committee, referred to arbitration and decided in accordance with the Bye-laws, Rules and Regulations relating to arbitration or disputes between Members.


OTC Exchange of India

The Default Committee shall apply the net monies, securities and assets remaining in its hands after defraying all such costs, charges and expenses as are allowed under these Bye-laws, Rules and Regulations in satisfying first the claim of the Exchange and then ratably such admitted claims of Members against the defaulter, arising out of the contracts entered into in the market, in accordance with the provisions of the Bye-laws, Rules and Regulations of the Exchange.

In the event a member fails to meet obligations to the Clearing House of the Exchange arising out of clearing and settlement operations of such deals as provided in the Bye-laws and Regulations, the relevant authority may utilize the Settlement Guarantee Fund and other monies to the extent necessary to fknctions the obligations under such terms and conditions as the relevant authority may specify from time to time.

In other cases, “democracy” is used to mean direct democracy. In fact, any company with an issued capital of more than Rs. Service by post or telegram when complete. At the same time, the system provides for concealment of the identify of market operations.


A Member shall not allow its name to be advertised or cause to be published in the advertisement of others except as provided in Clause 6. The Managing Director of the Exchange shall have the authority to prescribe the procedural formalities and guidelines to give effect to the above.

In case any appeal has been filed by any of the party to the dispute, payment from the earmarked account will be made as per the orders of the court.