Over-the-Counter Exchange of India (OTCEI)
Candlefocus EditorOTCEI is different from traditional exchanges as it allows companies with a smaller market capitalization to be listed. This is because it has its own set of capitalization rules that prevent larger companies from joining its listings. Thus, it gives small and medium-sized companies the chance to showcase their true potential and have access to a wide range of investors that may not be available to them elsewhere.
The key players in the OTCEI market include brokers, market makers, custodians, and transfer agents. Brokers are responsible for matching buyers with sellers and providing the trading platform necessary for the transactions. Market makers are the entities responsible for providing liquidity to the market, by buying and selling shares when there is low market demand. Custodians are responsible for safeguarding the assets and maintaining the security of the trading platform. Finally, transfer agents are responsible for processing the financial transactions and keeping track of the investor data.
OTCEI has benefitted several companies by providing them access to capital, while also aiding investors by bringing them closer to a broad range of companies. It is also a much more cost-effective alternative to the traditional exchanges, with businesses finding it easier to comply with the OTCEI’s listing rules. The OTCEI has thus been a great boon for the Indian capital markets, and its significance is likely to only increase in the coming years.