FUNCTIONS OF OTCEI PDF

All stock exchange have a specific place for trading their securities through counters. But the OTCEI is connected through a computer network and the transactions are taking place through computer operations. Thus, the development in information technology has given scope for starting this type of stock exchange. OTCEI is recognized under the Securities Contract Regulation Act and so all the stocks listed in this exchange enjoy the same benefits as other listed securities enjoy.

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Established in and located in Mumbai, this exchange brought a paradigm shift to the Indian financial market right after it had suffered a setback due to an unprecedented scam that hit the Bombay Stock Exchange. This article, divided into 4 major sections highlighted below, will introduce you to the legacy of NSE.

The immediate aim was to provide equal access to investors from all across the nation and make participating in stock market easier. Operations in the equity segment were started in November followed by Derivatives segment in June NSE was the first stock exchange in India where ownership, management and trading were handled by three independent set of people.

While the ownership is with various financial institutions and banks, the management is handled by independent professionals who are forbidden from directly or indirectly trading on the exchange.

This demutualization has eliminated the kind of conflict of interest that was at the root of security scam. Functions of NSE The NSE was set-up with an express objective to fulfil the following functions: establishing a nation-wide trading facility for equities, debt and other hybrid instruments ensuring equal access to investors across the nation through an appropriate communication network providing a fair, efficient and transparent securities market to investors using electronic trading systems enabling shorter settlement cycles and book entry settlements systems , and meeting the current international standards of securities markets NSE successfully fulfilled these functions by establishing the first electronic stock market of the nation.

This not only made investing simple, but also provided increased transparency. The price information that was earlier available only to a handful of traders present at the exchange, was now widely broadcasted and available to everyone at their own remote location. Before the system introduced by NSE, an investor who wanted to trade a security not listed on the nearest exchange had to route orders through a series of correspondent brokers to the appropriate exchange.

This resulted in increased uncertainty and high transaction costs. NSE made it possible for an investor to access the same market and order book, irrespective of location and at the same cost as every other investor. NSE trading terminals are now present in cities and towns across India and can be accessed through brokers from anywhere on the globe. Features of National Stock Exchange NSE, like every other leading stock exchange today, runs an order-driven market as opposed to quote-driven market.

The order management system under NEAT gives a unique number to each order received and if a match is not found immediately, it is added to an order book where the sequence of orders to be matched are determined based on price-time priority.

That is, if two orders are entered into the system, the order having the best price gets the higher priority and within the orders of the same price priority is given to the older order. Order matching is done by comparing the best buy order, the buy order with the highest price, with the best sell order, the sell order with the lowest price. This is because a seller would like to sell to the buyer offering the highest price and vice versa.

While orders can be partially matched till the complete order can be completed, the matches are always made based on the passive price of the order and not the active price at which the match is made. NEAT also allows members to specify conditional clauses on the submitted orders These clauses can be of the following kinds:.

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Over the Counter Exchange of India (OTCEI) – Explained

General Insurance Corporation and its subsidiaries. Canbank Financial Services Ltd. It was set up to provide small and medium companies an access to capital market for raising finance in a cost effective manner and investors with a convenient, transparent and efficient avenue for capital market investment. The OTCEI was the first ring less, electronic and national exchange with a screen based trading system listing an entirely new set of companies of small size. It allowed companies with a paid up capital as low as 30 lacs to get listed, It brought screen based trading system in vogue for the first time; this was quite different from the open outcry system at BSE.

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Over The Counter Exchange of India (OTCEI)

Established in and located in Mumbai, this exchange brought a paradigm shift to the Indian financial market right after it had suffered a setback due to an unprecedented scam that hit the Bombay Stock Exchange. This article, divided into 4 major sections highlighted below, will introduce you to the legacy of NSE. The immediate aim was to provide equal access to investors from all across the nation and make participating in stock market easier. Operations in the equity segment were started in November followed by Derivatives segment in June NSE was the first stock exchange in India where ownership, management and trading were handled by three independent set of people. While the ownership is with various financial institutions and banks, the management is handled by independent professionals who are forbidden from directly or indirectly trading on the exchange.

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OTC Exchange of India

There is no central place of exchange, and all trading occurs through electronic networks. Over-the-counter markets around the world are stock markets that function outside of formal exchanges. In the United States, OTC is also a reference to debt securities and other financial instruments that trade over a dealer network. This was 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. Thanks to advances in technology that have yielded improvements in electronic trading platforms, the differences between traditional exchanges and OTC networks are not so substantial. The big advantage of formal exchanges is more transparency and the opportunity to see offers from every other counterparty. Markets In the U.

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