What are the main features of OTCEI?
Following are the features of OTCEI:
- Ringless Trading: For greater accessibility to the investor, the OTC Exchange has eliminated the trading ring.
- National Reach:
- Exclusive List of Companies:
- Authorized Dealers:
- Liquidity through Market Making:
- Efficient Market Pricing:
What are the objectives and functions of Sebi?
The fundamental objective of SEBI is to safeguard the interest of all the parties involved in trading. It also regulates the functioning of the stock market. SEBI’s objectives are: To monitor the activities of the stock exchange.
What are the features of over the counter?
Over-the-counter markets do not have physical locations; instead, trading is conducted electronically. This is very different from an auction market system. In an OTC market, dealers act as market-makers by quoting prices at which they will buy and sell a security, currency, or other financial products.
How are transactions done in OTCEI?
How are transactions done in OTCEI? The members of the OTCEI will invite companies to list on the exchange for raising capital. There are dealers who perform the dual role of a broker and market maker.
What is the function of Otcei?
The Over-The-Counter Exchange of India (OTCEI) is an Indian electronic stock exchange composed of small- and mid-cap companies. The purpose of the OTCEI is for smaller companies to raise capital, which they cannot do at the national exchanges due to their inability to meet the exchange requirements.
What are the advantages of Otcei for investors?
It offers the facility of faster deal settlement for investors across the counters spread over the entire country. 6. Transfer: It is important that OTC shares are transferable within 7 days, where the consolidated holdings of the scrip’sdonotexceed 0.5 percent of the issued capital of the company.
What are the different types of OTC derivatives?
Types Of OTC Derivatives
- Interest Rate Derivatives : Here, the underlying asset is a standard interest rate.
- Commodity Derivatives : Here, the underlying assets are physical commodities such as gold, food grains etc.
- Equity Derivatives :
- Forex Derivatives :
- Fixed Income Derivatives :
- Credit Derivatives :
Who regulates Otcei?
OTCEI is promoted by the Unit Trust of India, the Industrial Credit and Investment Corporation of India, the Industrial Development Bank of India, the Industrial Finance Corporation of India, and other institutions, and is a recognised stock exchange under the SCR Act.
What is the main function of SEBI?
The main duty of SEBI is to regulate the Indian Capital markets. It monitors and regulates the stock market and protects the interests of the investors by enforcing certain rules and regulations.
What are the three functions of SEBI?
The SEBI Act of 1992 carries a list of such powers vested in the regulatory body. The functions of SEBI make it an issuer of securities, protector of investors and traders and a financial mediator.
What are the features and features of OTCEI?
Computerization of transactions: Computers at each counter enable to dealers to enter various transactions or queries or quotes through a central OTCEI computer, using telecommunications links. Due to the above features, OTCEI has an edge over other stock exchanges in the country. OTCEI commenced its operations in 1992.
How is The OTCEI connected to the market?
But the OTCEI is connected through a computer network and the transactions are taking place through computer operations. Thus, the development in information technology has given scope for starting this type of stock exchange.
Which is the best definition of OTCEI in India?
Definition of OTCEI. Over The Counter Exchange of India (OTCEI) can be defined as a stock exchange without a proper trading floor. All stock exchange have a specific place for trading their securities through counters. But the OTCEI is connected through a computer network and the transactions are taking place through computer operations.
What are the requirements for listing on The OTCEI?
For any company to list its shares in OTCEI, it requires sponsorship by members of the OTCEI and it must also have two market makers. The OTCEI has also laid down rules regarding listing requirements. Once a company lists its securities in the market, it cannot delist its securities for a minimum period of 3 years.