Slide 2:
OTCEL is an electronic stock exchange with the object of providing an opportunity to small &medium companies to assess public funds at a low cost.
It was set up to access high-technology enterprising promoters in raising finance for new product development in a cost effective manner and to provide transparent and efficient trading system to the investors.
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.
The promoters of OTCEI were ICICI, UTI, IFCI, IDBI, SBI Capital Markets, Canbank Financial Services, LIC, and GIC.
Slide 3:
Benefits for company:
OTCEI offers facilities to the company having a issued equity capital of more than Rs.30 lakhs
Small & medium closely held company can go public
Encourage entrepreneurship
Company can get the money before the issue in cases of bought out deals
Easy issue marketing by using the nation-wide OTCEI dealers network
Nation wide trading by listing at just 1 exchange
Slide 4:
Benefits for investors:
Easily accessible by any investor
Provide greater confidence to investors because of the complete transparency in India
Transactions are fast and completed quickly
Ensures security, liquidity, by offering 2 way quotes,
OTCEI is an investors friendly exchange with single window clearance for all investor requests.