SUBMITTED BY:

P.SATHISH MANAV-14MBA0074
ABHISHEK BHATTACHARJEE-14MBA0070
BINU NAIR-14MBA0068
MOHD SALMAN-14MBA0050
DANIEL MATHEW-14MBA0091
 OTCEI
The OTC Exchange Of India (OTCEI), also known as the
Over-the-Counter Exchange of India, is based in Mumbai
Maharashtra. It is India's first exchange for small
companies, as well as the first screen-based nationwide stock
exchange in India. OTCEI was set up to access high-
technology enterprising promoters in raising finance for new
product development in a cost-effective manner and to provide
a transparent and efficient trading system to investors.
NEEDS
 CONT
Over the counter exchange of India was started in 1992. The
OTCEI was started with the objective of providing a market
for the smaller companies that could not offered the listing
fees of the large exchange and didn't fulfill the minimum
capital requirement of listing.
The aim at creating a fully decentralized and transport market.
Over the counter exchange means trading across the counter in
scrip.
The counter refers to the location of the member or dealer of
the OTCEI where the deal or trade takes place. Every counter
is treated as trading floor for OTCEI where the investor buy or
sell.
 FEATURES
NATIONWIDE TRADING
RINGLESS TRADING
TOTALLY COMPUTERISED
TRANSPARENT TRADING
ONLY AUTHORIZED DEALERS
TWO WAY OF MAKING A PUBLIC OFFER
FASTER TRANSFER AND TARDING OF SHARES
INVESTOR REGISTRATION
TRADING IN UNLISTED EQUITY SHARES
TRADING IN FUTURES AND OPTIONS AND FORWARD
CONTRACT ON STOCK
 PARTICIPANTS
A company should have a minimum paid up capital of Rs.30 lakhs and the
minimum offer to the public should be 25% of the issued capital or Rs. 20
lakhs worth of shares in face value whichever is higher
Every company that intends to get listed has to be sponsored by a merchant
banker(Member/sponsor) of the exchange.
The sponsor of the issue must arrange for market makers to give buy &sell
quotes in the securities for an initial period of 18 months.
Relaxation in listing norms as compared to other stock exchanges.
 CONT..
Investor
Issuer Companies
Members and Dealers
Market Makers
Compulsory Market Making
Additional Market Making
Voluntary Market Making
Sponsors
Registrars and Custodians
Central Clearing Bank
Settler
Monitoring Agencies
 PROCEDURES FOR LISTING
The procedure adopted for the listing of shares at OTCEI is as follows:

OTCEI appoints a member as a sponsor for the company's issue. The

sponsor appraises the project or company on various aspects, such as
technical, managerial, commercial, economical and financial. After
appraisal, the sponsor certifies the OTCEI regarding its appraisal.
The sponsor determines the price of shares to be offered to the public,
members and dealers of OTCEI.
The sponsor after compliance with all SEBI guidelines gets all statutory
consent.
The sponsor registers the issue with OTCEI and makes the listing
application to the OTCEI as per rules and regulations.
After getting the approval, the allotment is made.
Once the allotment is over, the equity is listed and trading commences
 CONT
After the completion of entire process of allotment and refund, the company or
the sponsor makes the application for the listing of scrips at OTCEI. The
following documents are to be attached with the application for listing:

Listing agreement
Certificate from auditor that the allotment letters, counter receipts and advice-
cum-refund orders have been mailed;
A certificate from the auditor that the allotment has been made as per the basis
approved by OTCEI;
Company's confirmation that all cheques for brokerage and underwriting
commission have directly been posted to members and dealers;
A copy of the newspaper announcement giving the basis of allotment as approved
by OTCEI, and
A Cheque /demand draft for the listing fee.
 Listing Fee

The fee structure for listing

is as follows:
Initial Listing Fees Rs. 7,500
Annual Listing Fees
Paid-up capital Amount of Annual Fees
Upto Rs. 3 crore Rs. 7500/-
Rs. 3 crore- Rs. 10 crore Rs. 15000/-
Rs. 10 crore- Rs. 20 crore Rs. 25000/-
Rs. 20 crore- Rs. 50 crore Rs. 40000/-
Rs. 50 crore- Rs. 100 Rs. 85000/-
crore Rs. 1000 for every Rs. 10
Above Rs. 100 crore crore
 TRADING
An investor can buy and sell any listed scrip at any OTC Exchange counter.
The investor can also make an application for services like transfer of
shares, splitting and consolidation of shares, nomination and revocation of
nomination, registering power of attorney etc. The parties involved in trading
on OTC are investor, Counter, Settler Registered Custodian, Company and
Bank. The trading documents mainly involved in OTC Exchange transactions are:

Temporary Counter Receipt (TCR)

Permanent Counter Receipt (PCR)
Sales Confirmation Slip (SCS)
Transfer Deed (TD)
Service Application Form (SAF)
Application Acknowledgement Slip (AAS) and
Deal Form (DF)