less accumulated losses, if any. Minimum funds committed for OTC operations should be Rs.1 crore.
Minimum Educational Qualifications -
Corporate- Graduate (applicable to 2 whole time Directors)
Citizenship -
Corporate - Company should be incorporated under Companies Act,1956
Experience -
Minimum of 2 Directors should possess a minimum of 2 years experience in capital market / stockbroking / portfolio management / investment consultancy
Trading Infrastructure
1. Office space of atleast 200 sq.ft. (own/long term lease of at least 5 years).
2. Two direct telephones.
3. Telex/Fax at the designated OTC counter.
The entity should not be engaged in any fund based activity.
Selection Procedure
Prospective Members to submit an application in prescribed form.
Selection will be at the sole discretion of the Board of OTCEI.
Functions of Members
Appraisal and evaluation of proposal
Valuation of shares for companies appraised
Participation in bought-out deals
Offer of shares to the public (lead managed by other entities or by itself)
Stockbroking activities
Market making
Investor services
Note:
Members & Dealers can commence trading only after being registered with SEBI as a stockbroker.
