what is the over the counter exchange of india otcei 
the over the counter exchange of india otcei is an electronic stock exchange based in india that consists of small and medium sized firms aiming to gain access to overseas capital markets including electronic exchanges in the u s such as the nasdaq there is no central place of exchange and all trading occurs through electronic networks understanding the over the counter exchange of india otcei the otcei is based in mumbai india and operates solely over a computer network the exchange is recognized by india s securities contract regulation act meaning all listed stocks on the otcei benefit equally as other listed securities on other exchanges in india the exchange was established in 1990 to provide investors and companies with an additional way to trade and issue securities it arose primarily from small companies in india finding it difficult to raise capital through mainstream national stock exchanges because they could not fulfill the stringent requirements to be listed on them the otcei has rules that are not as rigid as the national exchanges allowing small companies to gain access to the capital they need to grow the objective is that once they grow to a certain level and are able to meet the requirements to be listed on the national stock exchanges they will make the switch over and leave the otcei behind thanks to advances in technology that have yielded improvements in electronic trading platforms the differences between traditional exchanges and over the counter otc networks are no longer vast greatly benefiting the small and medium sized companies features of the over the counter exchange of india otcei the otcei has some special features that make it a unique exchange in india as well as a growth catalyst for small to medium sized companies the following are some of its unique features over the counter exchange of india otcei listing requirementsthe otcei makes it easier for small to mid cap sized companies to be listed although there are still some requirements that companies must meet before being allowed to be listed stipulations include acquiring sponsorship from members of the otcei and having two market makers in addition once a company is listed it cannot be delisted for at least three years and a certain percentage of issued equity capital needs to be kept by promoters for a minimum of three years this percentage is 20 over the counter exchange of india otcei transactionsthe transactions on the otcei revolve around the dealers dealers operate in a few capacities the two most important being as a broker and as a market maker as a broker the dealer transacts on behalf of buyers and sellers as a market maker the dealer has to ensure the availability of the shares for transaction purposes as well as to ensure that the price remains reasonable through supply and demand levels in addition to the dealers the otcei also has custodians the custodian or settler is the individual that performs the multitude of administrative tasks necessary for the proper functioning of the otcei these tasks include validating and storing documents as well as facilitating daily clearing transactions finally the last group of players consists of the registrars and transfer agents who are responsible for making sure the correct transfer and allotment of shares take place 