Norms

Entities eligible

Corporate entities (SEBI recognized Merchant Bankers only

Networth requirements

Rs. 1 crore comprising of the minimum paid up capital plus free reserves (excluding revaluation reserves, capital reserves, specified reserves & cost of sponsorship) 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 either of capital market / stockbroking / portfolio management / investment consultancy

Selection Procedure for Sponsors

Prospective Sponsors to submit an application in prescribed form

The selection will be at the sole discretion of the Board of OTCEI

Functions of Sponsors

Participation in bought-out deals

Appraisal and evaluation of proposal

Sponsor companies for listing and lead manage those issues.

Appoint market-makers for all issues sponsored