What is the main purpose of Over the Counter Exchange of India?
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.
Which are the objectives of the Indian instant exchange Centre?
The Concept & Process:
- Origin: The concept of the dematerialization of shares was firmly established in India by the Depositories Act 1996.
- Rationale: The primary objective of the Depositories Act was to make transferability of securities free, fast, accurate and secure.
What is the role of over the counter exchange?
OTC trading helps promote equity and financial instruments that would otherwise be unavailable to investors. Companies with OTC shares may raise capital through the sale of stock.
What are the objectives 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.
Which is India’s first international exchange?
India International Exchange (IFSC) Limited (India INX), the first international exchange at GIFT IFSC, was inaugurated by the Hon’ble Prime Minister of India, Shri Narendra Modi, on Jan 09, 2017 and commenced its operations from Jan 16, 2017.
What is Indian instant exchange Centre?
The India International Exchange Limited (India INX) is India’s first international stock exchange and subsidiary of Bombay Stock Exchange. It is located at the International Financial Services Centre, GIFT City in Gujarat. It was inaugurated by Indian Prime Minister Narendra Modi on 9 January 2017.
What are OTC derivatives products?
An over the counter (OTC) derivative is a financial contract that does not trade on an asset exchange, and which can be tailored to each party’s needs. A derivative is a security with a price that is dependent upon or derived from one or more underlying assets.
What is SEBI in simple words?
The Securities and Exchange Board of India (SEBI) is the leading regulator securities markets in India, analogous to the Securities and Exchange Commission in the U.S. SEBI has wide-ranging regulatory, investigative, and enforcement powers, including the ability to impose fines on violators.
Which of the following is not an objective of SEBI?
Establishing a nationwide trading facility for all types of securities- it is not an objective of SEBI. The overall objectives of SEBI are to protect the interest of investors and to promote the development of stock exchange and to regulate the activities of stock market.
When was over the counter exchange of India established?
Over The Counter Exchange of India (OTCEI) was incorporated in October 1990 under Section 25 of the Companies Act, 1956 with the objective of setting up a national, ringless, screen-based, automated stock exchange. It is recognized as a stock exchange under Section 4 of the Securities Contracts (Regulations) Act, 1956.
What is the purpose of OTCEI in India?
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. The OTCEI implements specific capitalization rules that make it suited for small- to medium-sized companies while preventing larger companies from being listed.
How does over the counter exchange ( OTCEI ) work?
The OTCEI system ensures that trades are done at the best prevailing quotation in the market. The confirmation slip/trading document generated by the computers gives the exact price at which the deals has been done and the brokerage charged.
Where is The OTCEI Stock Exchange in India?
The OTCEI is based in Mumbai, India, and operates solely over a computer network. The exchange is recognized by India’s Securities Contract Regulation Act, meaning all listed stocks on the OTCEI benefit equally as other listed securities on other exchanges in India.
