Securities Traded
Following
are the securities that are traded on the OTCEI:
1. Listed equity (exclusive): These
are equity shares of the companies listed exclusively on the
OTCEI. The shared can be bought or sold at any of
the member/ dealer‗s office all over India.
The securities, which
are listed exclusively on the OTCEI, cannot be traded on other stock exchanges.
Listed debt: These
are the debentures/bonds that are issued through a public issue or a private
placement and are listed on OTCEI. Any entity holding the entire series of
a particular debt instrument can also offer them for trading on the OTCEI, by
appointing an OTCEI member/dealer to carry out compulsory market making in
those securities.
Gilts: The securities issued
by the Central and State Governments are called ‘gilts’. Government of India
Dated Securities, Treasury Bills and special securities are traded in this
segment. Banks, Foreign Investors, Foreign Institutional Investors, NBFCs and
Provident Funds can trade in these securities through OTCEI designated
members/dealers.. PSU Bonds, Commercial Paper, and Certificates of Deposit will
also be traded in this segment.
4. Permitted
securities: These are the securities listed on other
exchanges, which are permitted for trading on OTCEI. Securities of Blue
Chip companies like ACC, Reliance Industries Ltd., State Bank of India, ITC,
etc. are traded in this segment.
5. Listed mutual funds: Listed
mutual funds are units of mutual funds that are listed on OTCEI.
Mutual fund units like
units of Unit-64, Monthly Income Plan, and under this category. To counter the
influence of Bombay Stock Exchange and reduce the influence of certain powerful
intermediaries in the stock market, a new stock market was promoted in which
both securities of companies and debt instruments are traded, namely the
National Stock Exchanges. NSE takes into account the screen based trading and
so it is the most advanced. The success of this stock exchange is quite evident
that within a few years of its promotion the volume and the value of
transactions have surpassed the BSE.
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