OTCEI, or Over the Counter Exchange of India

OTCEI, or Over the Counter Exchange of India Approved by the Government of India in 1989m, it came into operation in 1991. It has no particular marketplace or stock exchange floor. In OTC, buyers and sellers operate on negotiated prices acceptable to both. Inactive issues, less liquid shares, issues with limited public holding, and issue listed with the OTC comprise the OTC market. The objective of the OTC are liquidity, fixed and fair price, simplified process of buying and selling, quick disposal of orders, and a cheaper method of public sale of new issues

It is a ringless exchange, located in a number of places in a city, and many large towns, interlinked by a computer network. The investor has to go to one such counter, watch the quotations on electronic display board, and make a deal at a very reasonable price. He is not price – blind; he knows exactly at what price the transaction has been made.

The General Insurance Corporation has set up a number of counters all over the country. The promoters of OTCEI were ICICI, UTI, IFCI, IDBI, SBI Capital Markets, Canbank Financial Services, LIC, and GIC.

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