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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Unlike other stock exchanges, the OTC Exchange has a nationwide reach. Refusal to accept delivery does not affect service. If the sum involved in dispute is one thousand rupees or more the party dissatisfied with the award of the Arbitration Committee may appeal to the OTC Committee against such award within such time as prescribed of the receipt by him of such award. Failure to pay fines and penalties.

Any dispute, unsettled claim, difference or controversy arising out of or in connection with the business of any Member s of the Exchange or in relation to any bargains, dealings, transactions or contracts, whether entered into or not, shall be subject to the provisions of the Arbitration and Conciliation Act, and shall be referred for arbitration to the Arbitration Committee appointed by the Board of Directors.

The Exchange shall clear and settle the trades on a sequential basis i. The role of the lungs i … s to provide the body lf oxygen. All members have to comply with the Base Minimum Capital requirement before their activation on the Exchange.

OTCEI: Concept and Advantages | India | Financial Management

Separate Books of Account. The party appealing to OTC Committee may state fhnctions writing the objections to the award of the Arbitration Committee and shall unless exempted by OTC Committee fulfill all the conditions made in the award by the Arbitration Committee. The contract note shall be signed by a Member or his authorised signatory or his constituted attorney.

Investors are benefited by this as it enhances the liquidity of the scrips listed on the OTC Exchange. Maximum Liability from Investor Protection Fund. The Arbitration Committee shall make their award within such time as prescribed by the Exchange after entering on the reference or after having been called upon to act by notice in writing from any party or within such extended time as it may fix with the consent of the parties to the reference or as the Exchange may allow.


This ensures swifter availability of funds to companies for timely completion of projects and a listed status at a later date. All you have to do to gain access to an account is open the file. In the United States, separation of powers is often cited as a central attribute, but in other countries, such as the United Kingdom, the dominant principle is that of parliamentary sovereignty whilst maintaining judicial independence.

Every member shall remit to the Exchange, the Securities Transaction Tax otce 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, Transfer of Promoter Membership: Permission for legal representation.

Failure to make payment or delivery to the Default Committee of all monies and other assets due to a Member who has been declared a defaulter within such time of the declaration of otcwi of such a Member as the relevant authority may fuhctions or. The sponsor makes thorough appraisal of the project, resulting in investors getting a choice of quality companies. Furthermore, freedom of political expression, freedom of speech, and freedom of the press are considered to be essential, so that citizens are adequately informed and able to vote according to their own best interests as they see them.

OTCEI: Concept and Advantages | India | Financial Management

The Exchange shall not permit dealings in prospective dividends and otcwi contracts for the purchase and sale of prospective dividends shall be deemed void.

When in the opinion of OTC Committee, the member conducts business in a manner prejudicial to the Exchange by making purchases or sales of securities or offers to purchase or sell securities for the purpose of upsetting equilibrium of the market or bringing about a condition of demoralization in which prices will not fairly reflect market values; or.

Such fees, deposits and other monies as are specified by the Board would be payable on appointment as Dealer and for continued appointment thereof.

Disclosures of beneficial interest. Moneys to be withdrawn from Clients account.


The Exchange shall follow a strict time schedule to ensure that the settlements are completed on the same day. If it enters into dealings in securities in which dealings are not permitted on the Exchange. Member shall withdraw only the following moneys from the clients account: The OTC Committee may from time to time create, constitute sub-committees to carry on business complying with all regulations and guidelines laid down by the OTC Committee.

The Members shall maintain separate accounts so as to distinguish the monies received from or on account of and moneys paid to or on account of each of his clients and the moneys received and the moneys paid on his own account. The Exchange is empowered to appoint the applicant as a Dealer in accordance with the rules it may frame from time to time, in this regard. Specific allegation of coercion, undue influence, fraud, misrepresentation or upon prima facie evidence of such material mistake in the deal.

Penalty on failure to submit to or abide by award in arbitration. In order to overcome the pitfalls and loop-holes of the existing system, a new institution called OTCEI came into existence in and started functioning in The Act specified that a minimum issued equity capital of Rs.

Trading on the OTCEI takes place through a network of computers or OTC dealers located at different places within the same city and even across the cities. Member may forthwith close-out the transaction s of selling client, by effecting purchases of the securities, on his failure to deliver the securities funcctions alongwith the valid transfer deeds within two days of the Contract Note having been delivered by the counter or before the delivery day as fixed by the Exchange for the concerned settlement periodwhichever is earlier.

The stomach’s otccei is to digest food. The OTC Committee may if deemed fit, whether ottcei time for making the award has expired or not and whether the award has been made or not, extend from time to time, the time for making award.