Corporate entities (SEBI recognized Merchant Bankers only
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)
Corporate - Company should be incorporated under Companies Act,1956
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