wish you all very happy holi
Piyush Garg
B.Tech, MBA
+91-9000417811
http://finwizbypiyush.blogspot.com/
Sunday, February 28, 2010
Tuesday, February 16, 2010
Over-The-Counter Exchange Of India - OTCEI
The first electronic OTC stock exchange provide investors and companies with an additional way to trade and issue securities. This is the first exchange in India to introduce market makers, which are firms that hold shares in companies and facilitate the trading of securities by buying and selling from other participants.
OTCEI was incorporated in 1990 as a Section 25 company under the Companies Act 1956 and is recognized as a stock exchange under Section 4 of the Securities Contracts Regulation Act, 1956. The Exchange was set up to aid enterprising promoters in raising finance for new projects in a cost effective manner and to provide investors with a transparent & efficient mode of trading.
Modelled along the lines of the NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scripless trading. As a measure of success of these efforts, the Exchange today has 115 listings and has assisted in providing capital for enterprises that have gone on to build successful brands for themselves like VIP Advanta, Sonora Tiles & Brilliant mineral water, etc.
Need for OTCEI?
Studies by NASSCOM, Software Technology Parks of India, the venture capital funds and the government's IT Task Force, as well as the rising interest in information technology, pharmaceutical, biotechnology and media shares have repeatedly emphasised the need for a national stock market for innovative and high growth companies.
Innovative companies are critical to developing economies like India, which is undergoing a major technological revolution. With their abilities to generate employment opportunities and contribute to the economy, it is essential that these companies not only expand existing operations but also set up new units. The key issue for these companies is raising timely, cost effective and long term capital to sustain their operations and enhance growth. Such companies, particularly those that have been in operation for a short time, are unable to raise funds through the traditional financing methods, because they have not yet been evaluated by the financial world.
Intrinsic Benefits
A successful market for technology & growth companies has to :
demonstrate an understanding for new technology and concepts
provide capital formation opportunities for young companies without a track record
be national in order to reach and service entrepreneurs and investors
enable access to a wide spectrum of financial intermediaries
be cost effective for issuers
provide an exit route to venture capital & private equity funds for their investments
adopt state of art trading systems and practices in tune with international norms
be well regulated to promote transparent and fair market practices
OTCEI, by virtue of its unique position, is well suited to service the requirements of these companies, making it the natural choice for the emerging technology and growth stocks. In fact, consumer favourites like VIP Advanta, Sonora tiles and Brilliant Mineral Water are made by high growth companies that have benefited by listing on OTCEI
for more details about OTCEI you can visit:
http://www.otcei.net/
OTCEI was incorporated in 1990 as a Section 25 company under the Companies Act 1956 and is recognized as a stock exchange under Section 4 of the Securities Contracts Regulation Act, 1956. The Exchange was set up to aid enterprising promoters in raising finance for new projects in a cost effective manner and to provide investors with a transparent & efficient mode of trading.
Modelled along the lines of the NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scripless trading. As a measure of success of these efforts, the Exchange today has 115 listings and has assisted in providing capital for enterprises that have gone on to build successful brands for themselves like VIP Advanta, Sonora Tiles & Brilliant mineral water, etc.
Need for OTCEI?
Studies by NASSCOM, Software Technology Parks of India, the venture capital funds and the government's IT Task Force, as well as the rising interest in information technology, pharmaceutical, biotechnology and media shares have repeatedly emphasised the need for a national stock market for innovative and high growth companies.
Innovative companies are critical to developing economies like India, which is undergoing a major technological revolution. With their abilities to generate employment opportunities and contribute to the economy, it is essential that these companies not only expand existing operations but also set up new units. The key issue for these companies is raising timely, cost effective and long term capital to sustain their operations and enhance growth. Such companies, particularly those that have been in operation for a short time, are unable to raise funds through the traditional financing methods, because they have not yet been evaluated by the financial world.
Intrinsic Benefits
A successful market for technology & growth companies has to :
demonstrate an understanding for new technology and concepts
provide capital formation opportunities for young companies without a track record
be national in order to reach and service entrepreneurs and investors
enable access to a wide spectrum of financial intermediaries
be cost effective for issuers
provide an exit route to venture capital & private equity funds for their investments
adopt state of art trading systems and practices in tune with international norms
be well regulated to promote transparent and fair market practices
OTCEI, by virtue of its unique position, is well suited to service the requirements of these companies, making it the natural choice for the emerging technology and growth stocks. In fact, consumer favourites like VIP Advanta, Sonora tiles and Brilliant Mineral Water are made by high growth companies that have benefited by listing on OTCEI
for more details about OTCEI you can visit:
http://www.otcei.net/
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