Question

What is OTCEI?

Hint:

OTCEI provides an avenue for smaller companies to access capital and allows investors to trade in unlisted securities.

Answer 1

The Over-the-Counter Exchange of India (OTCEI) was established to provide a platform for trading of unlisted securities and to facilitate price discovery in the Indian stock market. OTCEI allows smaller companies to access the capital market by enabling them to list their securities and raise funds without being subject to the stringent listing requirements of major stock exchanges. Key features of OTCEI: 1. {Platform for unlisted securities:} It serves as a platform for companies whose securities are not listed on major stock exchanges. 2. {Lower entry requirements:} OTCEI offers lower entry barriers for companies, allowing them to raise capital without undergoing the rigorous listing processes of major exchanges. 3. {Regulation and transparency:} Although it facilitates trading in unlisted securities, it maintains strict regulatory standards to ensure transparency and protect investor interests. Conclusion: OTCEI plays an important role in providing an alternative platform for smaller companies to raise capital and for investors to trade in securities that are otherwise not accessible.
Final Answer: \[ \boxed{\text{OTCEI is a platform for trading unlisted securities and enabling price discovery in the Indian stock market.}} \]