(i) What are the advantages of OTCEI? |
(ii) What values are looked upon by OTCEI to serve the various stakeholders? |
Answer:
(i) Advantages of OTCEI market are given below: (any three) [a] It provides a platform for trading to smaller and less liquid companies as they are not eligible for listing on a regular exchange. [b] Family concerns and closely held companies can go public through OTCEI. [c] Dealers can operate both in new issues and in secondary market at their option. [d] There is no problem of bad and short deliveries. [e] Uniform transparent system of trading with free flow of information between market makers to customers, since there is close contact between them. (ii) Values looked upon by OTCEI are: [a] Safety and fairness in transactions for investors. [b] Equality and opportunity in funds raising for smaller companies.
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