What are the objectives of SEBI?
The fundamental objective of SEBI is to safeguard the interest of all the parties involved in trading. It also regulates the functioning of the stock market. SEBI’s objectives are: To monitor the activities of the stock exchange.
What are the main features of OTCEI?
Following are the features of OTCEI:
- Ringless Trading: For greater accessibility to the investor, the OTC Exchange has eliminated the trading ring.
- National Reach:
- Exclusive List of Companies:
- Authorized Dealers:
- Liquidity through Market Making:
- Efficient Market Pricing:
What is the role of over the counter exchange?
OTC trading helps promote equity and financial instruments that would otherwise be unavailable to investors. Companies with OTC shares may raise capital through the sale of stock.
Which is the role model of Counter exchange of India?
The Over The Counter Exchange of India is based on the model of national association of securities dealers’ automated quotation (NASDAQ) of USA, with modifications to suit the Indian conditions. The OTCEI arose out of the need to have a second tire market in the country.
What are the functions of SEBI Class 12?
(i) To regulate stock exchange and securities markets to promote their orderly functioning. (ii) To protect the rights of investors and ensuring safety to their investment. (iii) To prevent fraudulent and malpractices by balancing between self regulation of business and its statutory regulations.
Who appoints SEBI chairman?
the Union Government of India
The SEBI is managed by its members, which consists of the following: The chairman is nominated by the Union Government of India. Two members, i.e., Officers from the Union Finance Ministry. One member from the Reserve Bank of India.
What is the method of trading in OTCEI?
Method of trading in OTCEI is Screen based- Code driven.
Who is called as jobber?
Key Takeaways. A jobber, also known as a stockjobber, was a market maker on the London Stock Exchange. Jobbers held shares on their own accounts and help boost market liquidity by matching investors’ buy and sell orders through their brokers.
What is difference between OTC and exchange?
Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs via exchanges. A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price.
Who regulates OTC market in India?
The OTC derivatives markets in India are well regulated by the central bank. RBI allows OTC derivatives trading so long as at least one of the parties in the transaction is regulated by the bank.
Who regulates capital market in India?
The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India. SEBI’s primary functions include protecting investor interests, promoting and regulating the Indian securities markets.
Why was the over counter exchange of India established?
The multi-tier securities exchange model was adopted in our country in October 1990 with the establishment of the Over the Counter Exchange of India (OTCEI). The object of the OTCEI “is to provide an alternate market for the securities of smaller companies, public-sector companies, closely-held companies desirous of listing, etc.
Where is the OTC exchange of India located?
The OTC Exchange Of India ( OTCEI ), also known as the Over-the-Counter Exchange of India, is based in Mumbai, Maharashtra. It is under the ownership of Ministry of Finance , Government of India. It is India’s first exchange for small companies, as well as the first screen-based nationwide stock exchange in India.
What makes The OTCEI exchange unique in India?
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:
How does over the counter exchange ( OTCEI ) work?
The OTCEI system ensures that trades are done at the best prevailing quotation in the market. The confirmation slip/trading document generated by the computers gives the exact price at which the deals has been done and the brokerage charged.