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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The eligible shares for the purpose of the securities portion of the base minimum capital shall only be those which are classified as Group 1 in terms of the parameters of volatility and liquidity as stipulated in SEBI circular No. Investors can settle the deals across the counter and the money functiond scrip proceeds from the deal will be settled in a matter of days if not earlier. Payment To Default Committee.

OTCEI: Concept and Advantages | India | Financial Management

According to some theories of democracy, popular sovereignty is the founding principle of such a system. SEBI vide circular no. Members will not conduct deals except under the limits, Rules and Regulations that would be announced by the OTC Committee from time to funcfions.

The system must avoid premature binding. In case, an appeal is filed, the records, shall be preserved for five years from the date of final disposal by the Court.

Reference to Court of Law. Alteration or Cancellation of Exchange Holidays. Utilisation of the Fund in case of default. On the OTC Functioons, the transaction is settled within a period of 7 days. A notice informing of such expulsion to be put on the website of the Exchange and the trading screen of the Exchange, for the information of the market.

What is the role of OTCEI

fumctions The OTC Committee may in its absolute discretion and in such manner as it thinks fit, notify or cause to be notified to the Members of the Exchange or to the public that any person who is named in such notification has been expelled, suspended, penalized or declared a defaulter or has suspended its business or ceased to be a Member. The quorum and responsibilities of the sub-committees will be determined by the Board of Directors. Home Disclaimer Privacy Contact.

The Act specified that a minimum issued equity capital of Rs. Recommendations of the Funcrions Committee. Any member s found mis-utilising their trading terminals granted by the Exchange, suitable action will be taken by the Exchange which may include disciplinary proceedings, penalties, suspension and expulsion of Membership.

Split and merge into it. Members interested not to attend. The above will be subject to the provisions of the Foreign Exchange Regulation Act, Rules and any other rules and provisions of the Reserve Bank of India, as applicable. Through the concept of bought-out deals, OTCEI allows companies to place their equity meant to be offered to the public with the sponsor -member at a mutually agreed price.


However, the smaller stock exchanges can also accept the shares that are in the Group 1 of the BSE or NSE for the purpose of base minimum capital. A registered Market Maker shall not commence making market in any security until one business day after notice of its registration has been disseminated through the quotation system.

OTC Exchange of India

You want to make sure you are descriptive. The Member depositing Margin in the form of securities shall always maintain the value thereof at not less than the margin amount for the time being covered by them by providing further security to the satisfaction of the OTC Committee which shall always determine the said value and whose valuation shall conclusively fix the amount of any deficiency to be made up ltcei time to funcitons.

The Exchange shall also issue a press release funnctions this regard for greater transparency and in the interest of the investors. The suspended Member shall during the term of its suspension be deprived of and excluded from all the rights and privileges of membership including the right to attend or vote at any meeting of the Exchange, but it may be proceeded against by the OTC Committee for any offense committed by it either before or after its suspension and the OTC Committee shall not be debarred from taking cognisance of and adjudicating on or dealing with any claim made against it by other Members.

Fresh Reference on annulment of Award. During the hearing, the parties to the reference may with the permission of the Arbitration Committee, appear by counsel, attorney, advocate or duly authorised representative functinos where one party is so permitted a similar privilege shall be afforded to the other party or parties. There shall be no objection to an award of the Arbitration Committee or of the OTC Committee that the meeting at which a reference or appeal was inquired into or a reference or appeal was heard was adjourned from time to time or that the inquiry was not completed or that the reference or appeal was not finally heard at one meeting.

Unless the Board of the Exchange otherwise directs, the accounts of the Fund shall be prepared and maintained as a part of the accounts of the Exchange and shall be audited as a part of the accounts of the Exchange.

The securities lying in the pool account beyond the stipulated 1 working day shall attract a penalty at the rate of 6 basis point per week on the value of securities. In the NSE, the available system provides complete market transparency of trading operations to both trading members and the participates and finds a suitable match. Subject to the clause below, a person shall not have any claim for compensation in respect of a defalcation of money or other property which prior to the commission of the defalcation had in the due course of the administration of a trust ceased to be under the sole control of the Director or Directors or employees of the Member concerned.


The system must be able to recover from hardware and software failures. NSE is the largest and most modern stock exchange in Funcfions.

In fact, any company with an issued capital of more than Rs. Disclosure of dealings in securities by directors of the exchange: If he fails to abide by the arbitration award as laid down under the Bye-laws and rules of the Exchange; or. A Member shall not be bound to accept all or any of the instructions or orders of constituents for purchase, sale, etc.

OTCEI: Concept and Advantages | India | Financial Management

How do you explain features of computer? Explain OOPS and its features? Brokerage and Commission on Applications. Fees, Forms and Procedure. The Disciplinary Committee may warn, fine, expel, suspend or withdraw all or any of the Membership rights of a Member if in the opinion of the OTC Committee the Member be guilty of contravention, non-compliance, disobedience, disregard or evasion of any of the Bye-laws, Rules and Regulations, Code of Conduct of the Exchange or inconsistent with just and equitable principles of trade or detrimental to the interests, good name or welfare of the Exchange functiins prejudicial or subversive to its objects and purposes.

Dealings in Provisional Documents. The expelled Member shall be bound to fulfill transactions outstanding at the time of his expulsion and it may with the permission of the OTC Committee close such outstanding transactions with or through the Member.

During the effectiveness of such restrictions, no members or dealers shall, for any account of any client, engage in any transactions in contravention of such restrictions. Otei Member shall have the right to demand from its constituent, the margin deposit he has to provide under these Bye-laws, Rules and Regulations in respect of the business done by it for such constituent. Theyperform this role by taking in oxygen and exhaling carbon dioxide.

Sponsors to an issue shall perform the following functions: