features of OTCEI 1. nationwide trading2. ringless trading3. compulsory investor registration4. transparent trading5. Please see the related links for an explanation of OTCEI. 3. Features of OTCEI Ringless and Screen-based Trading The OTCEI was the first stock exchange to introduce automated,screen-based trading in place.

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Award by Arbitration Committee. The arbitral tribunal shall make the arbitral award normally within 3 months from the date of entering upon the reference. Decision of the OTC Committee final. Creditor od who do not maintain an account with the Exchange shall be paid such dividends on application.

Utilisation of the Settlement Guarantee Fund. Application for registration shall be in such forms prescribed by the Exchange from time to time. Transfer by way of Sale. Members responsibility for partners, agents and employees. Three members shall form a quorum for all the three sub-committees. You want to make sure you are descriptive. A Member shall appear and testify before and cause its partners, attorneys, agents, authorised signatories and employees to appear and testify before the OTC Committee or before other sub-committee s or an officer of the Exchange authorised in that behalf and shall produce before the OTC Committee or before other sub-committee s or an officer of the Exchange authorised in that behalf, such books, correspondence, documents, papers and records or any part thereof which may be in its possession and which may be deemed relevant or material to any matter under inquiry or investigation.

Explain the feature and functioning of OTCEI

The unit of trading in each security shall be for such number or for such amount as the Board of Directors may from time to time specify and unless so specified the unit of trading shall be in the lots prescribed or in such other lots as the Exchange may from time to time prescribe in modification or substitution thereof.

Members and others to testify and give information. All Directors and functionaries shall disclose to the Governing Board, upon assuming office and during their tenure in office, whenever the following arises. Whenever an award made under these Bye-laws and Rules directs that a certain act or thing be done by one party to the reference and such party fails to comply with the award, the other party may within 30 days from the receipt of the arbitration award make a fresh reference to arbitration as provided in these Bye-laws and Rules of the Exchange, for functjons additional award for determining the or outstanding or the amount of damages or compensation payable by reason of such failure and the award therein may be filed separately or together with the original award.

OTC Exchange of India

What is its role or roles in the body and how does it fulfill this role? A Member who is required to suspend its business under sub-clause a shall be expelled by the OTC Committee if it acts in contravention of the provisions of these Bye-laws.


Trading in Dematerialised mode 8. A registered Market Maker shall not commence making market in any security until one business day after notice of its registration has been disseminated through the quotation system. Every member shall remit to the Exchange, the Securities Transaction Tax in respect of the taxable securities transactions entered into by him as purchaser on the Exchange either on his own or on behalf of his Constituents in accordance with the procedures prescribed by the relevant authority from time to time and subject to the provisions of Income Tax Act, and the Securities Transaction Tax Rules, In the past, many small and medium sized companies were not able to enter the capital market, due to the listing requirement of the Securities Contract Regulation Act, It has a national network and there is no geographical barrier for listing.

SEBI vide circular no. The suspension of business under sub-clause a shall continue until the Member has been allowed by the OTC Committee to resume business on its paying such deposit or on its performing such act or providing such undertaking as the OTC Committee may be a Resolution require within the time prescribed by such resolution. A Member who is required to suspend its business may be expelled by the OTC Committee if it acts in contravention of this provision.

While the objective of this code is to enhance the level of market integrity and investor confidence, it is emphasized that a written code of ethics may not completely guarantee adherence to high ethical standards.

The role of the immune system is to fight off invaders. After making the award, the members of the Arbitration Committee shall sign such award and a signed copy of the same shall be delivered to each party.

OTC Exchange will help spread the stock exchange operations geographically and integrate capital market investment into a forum. Ethics Committee to lay down procedures and designate compliance officer. Subject to the provisions of the Securities Contracts Regulation Act and Rules, the OTC Committee, in its discretion may suspend a Member in lieu of the penalty of expulsion or may withdraw all or any of the Membership rights or impose a fine in lieu of the penalty of suspension or expulsion and may direct that the guilty Member be functons or warned or may reduce or remit any such penalty on such terms and conditions as it deems fair and equitable.

Every applicant desiring to be appointed functionz a Dealer of the Exchange shall make an application to the Exchange to that effect, alongwith such fees, deposits and other monies, in such form and in such manner as may be specified by the Exchange from time to time.

Final Decision of the Board of Directors.

Specific allegation of coercion, undue tocei, fraud, misrepresentation or upon prima facie evidence of such material mistake in the deal. A Member who has been adjudicated an insolvent or a corporate Member in respect of which a winding up order has been passed or which has gone into voluntary winding up as the case may be shall be ipso facto declared a defaulter although the Member may not be at the same time a defaulter of the Exchange. Provided that in any particular case, the Exchange may by a resolution, waive ov dispense with the strict enforcement of the listing requirements prescribed in the Securities Contracts Regulation Rules, to the extent the said Rules so provide, funchions may also by a resolution waive or dispense with the strict enforcement of any or all of the other listing conditions and requirements prescribed in the Bye-laws, Functtions and Regulations.


Amounts of the Claim. A Member shall have the right to demand from its constituent, the margin deposit he has to provide under these Bye-laws, Rules and Regulations in respect of the business done by it for such constituent.

OTCEI: Concept and Advantages | India | Financial Management

Please narrow the scope of your inquiry. However, a Member may waive the margins if he is satisfied that the respective client has sufficient credit balance against his name or has deposited the relevant share certificates alongwith duly executed valid transfer deed to the Member. Notice of Application for Admission to Dealings. The Exchange authorities may at their discretion and for reasons to be recorded, close the market on days other than or in addition to holidays.

Member when to Close-out Constituents Account.

Subject to the provisions of the Securities Contracts Regulation Act, and the Securities Contracts Regulation Rules,the OTC Committee may, at its discretion by passing a resolution to that effect, and where deemed necessary after giving an opportunity to the Company to explain, withdraw ufnctions admission to dealings on the Exchange granted to its securities either for listing on any other stock exchange or for breach functiosn or noncompliance with any of the listing conditions or requirements or for any other reason whatsoever to be recorded in the minutes.

Unlike other stock exchanges, the OTC Exchange has a nationwide reach. BSE is the leading and the oldest stock exchange in India as well as in Asia. Can you explain how a cell’s features are related to the cell’s function? The existing stock exchanges were insufficient in infrastructure facilities to cope up with the new situation. No Comment Yet Please Comment. An award made by the Arbitration Committee shall be in writing and shall be signed by the members of Arbitration Committee.