question_answer 17)

What is the OTCEI?

Answer:

The OTCEI is a company incorporated under the Companies Act, 1956. It was set up to provide small and medium companies an access to capital market for raising finance in a cost effective manner. It is fully computerized, transparent, single window exchange which commenced trading in 1992. This exchange is established on the lines of NASDAQ the OTC exchange in USA. If has been promoted by UTI, ICICI, IDBI, IFC l, LIC, GIC, SBI capital markets and can bank financial services. It is a negotiated market place that exists anywhere as opposed to the action market place, represented by the activity on securities exchange. Thus, in the OTC exchange, trading takes place when a buyer or seller walks up to an OTCEI counter, taps on the computer screen, finds quotes effects a purchase or sale depending on whether the prices meet their target.