OTC Exchange of India
Encyclopedia
OTC Exchange Of India also known as Over-the-Counter Exchange of India based in Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...

, Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...

.It is the first exchange for small companies
SME exchange
An SME exchange is a stock exchange dedicated for trading the shares of small and medium scale enterprises who, otherwise, find it difficult to get listed in the main exchanges. The concept originated from the difficulties faced by SMEs in gaining visibility or attracting sufficient trading...

. It is the first screen based nationwide stock exchange in India. It was set up to access high-technology enterprising promoters in raising finance for new product development in a cost effective manner and to provide transparent and efficient trading system to the investors.

OTCEI is promoted by the Unit Trust of India
Unit Trust of India
Unit Trust of India is a financial organization in India.Unit Trust of India was created by the UTI Act passed by the Parliament in 1963. For more than two decades it remained the sole vehicle for investment in the capital market by the Indian citizens. In mid- 1980s public sector banks were...

, the Industrial Credit and Investment Corporation of India, the Industrial Development Bank of India, the Industrial Finance Corporation of India
Industrial Finance Corporation of India
Industrial Finance Corporation of IndiaGENESIS OF IFCIAt the time of independence in 1947, India's capital market was relatively under-developed. Although there was significant demand for new capital, there was a dearth of providers. Merchant bankers and underwriting firms were almost non-existent...

 and others and is a recognised stock exchange under the SCR Act.

History

OTC Exchange Of India was founded in 1990 under the Companies Act 1956
Companies Act 1956
The Companies Act 1956 is an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries....

 and got recognized by the Securities Contracts Regulation Act, 1956 as a stock exchange.
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