OTCEI Trading Start Date: A Look Into the Beginning of OTCEI

OTCEI started its trading

The OTCEI, or Over-the-Counter Exchange of India, was established in 1990 with the aim of providing a platform for small and medium-sized companies to raise capital through a transparent and efficient trading system. The exchange became operational on August 21st, 1992, marking a significant milestone in the development of the Indian capital markets.

Table Of Contents

Prior to the establishment of OTCEI, small and medium-sized companies faced numerous challenges in accessing the capital markets. The traditional exchanges were often inaccessible to them due to high listing fees, strict eligibility criteria, and a lack of interest from large investors. This resulted in a limited pool of funding options for these companies, hindering their growth and expansion.

OTCEI aimed to bridge this gap by introducing a new system that would provide a level playing field for all companies, regardless of their size or financial strength. The exchange introduced several innovative features, such as screen-based trading, electronic clearing and settlement, and a nationwide network of brokers, which revolutionized the way securities were traded in India.

On the trading start date, numerous small and medium-sized companies made their debut on the OTCEI platform. This marked a new era for these companies, as they gained access to a wide range of investors who were previously inaccessible to them. The transparency and efficiency of OTCEI’s trading system also instilled confidence in investors, leading to increased liquidity and trading volumes on the exchange.

In conclusion, the trading start date of OTCEI was a momentous occasion in the Indian capital markets, as it opened up avenues for small and medium-sized companies to access capital and grow their businesses. The exchange’s innovative features and commitment to transparency played a crucial role in transforming the way securities were traded in India. The success of OTCEI paved the way for the development of other alternative trading platforms in the country, making it a landmark event in the history of Indian financial markets.

When Did OTCEI Start Trading: A Glimpse into OTCEI’s Inception

The Over-the-Counter Exchange of India (OTCEI) made its trading debut on August 31, 1992, marking a significant milestone in the Indian capital market. OTCEI was formed with the aim of providing a transparent and efficient trading platform for small and medium-sized enterprises (SMEs) to raise capital.

OTCEI was the first exchange in India to introduce a screen-based trading system, which allowed for electronic order matching and real-time price dissemination. This technology-driven approach brought more transparency to the trading process and enabled faster and more efficient trading, something that was missing in the traditional stock exchanges.

The exchange initially started with 100 companies listed on its platform, with a combined market capitalization of around INR 3,500 crores. These companies represented various sectors, including manufacturing, services, and trading. OTCEI’s listing criteria were relatively relaxed, allowing smaller companies to access capital markets with ease.

The launch of OTCEI played a crucial role in boosting the confidence of investors in the Indian capital market. It provided an alternative avenue for investment, especially for those who were looking for opportunities beyond the traditional exchanges. Additionally, companies listed on OTCEI benefited from increased visibility and access to a wider base of investors.

Read Also: How Python is Revolutionizing Trading: Exploring its Applications and Benefits

Over the years, OTCEI’s trading operations expanded, and it became a popular platform for SMEs to raise funds and for investors to diversify their portfolios. However, with the emergence of other stock exchanges and regulatory changes, OTCEI’s prominence gradually waned, and it eventually ceased its trading operations in the year 2014.

Despite its eventual closure, the establishment of OTCEI remains a significant milestone in the history of Indian capital markets. It paved the way for the introduction of advanced trading technologies and increased accessibility for smaller companies, making it an important chapter in India’s financial evolution.

OTCEI Trading Launch Date

The launch date of OTCEI trading, also known as Over The Counter Exchange of India, marked a significant milestone in the Indian financial market. On November 3, 1992, the OTCEI trading platform was officially inaugurated, providing investors with a new avenue for trading securities.

Prior to the establishment of OTCEI, the Indian stock market primarily operated through the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). However, these exchanges had certain limitations, such as high listing requirements and strict regulations, which made it difficult for small and medium enterprises (SMEs) to list their securities.

Read Also: Learn the Purpose and Applications of the Moving Average Method

The concept of OTCEI was introduced to bridge this gap and provide SMEs with an alternative platform for capital raising. The trading system offered by OTCEI was designed to be transparent, efficient, and accessible to all types of investors.

On the trading launch date, OTCEI initially had a network of 21 trading posts located across major Indian cities. These trading posts were equipped with computer terminals, allowing investors to place buy and sell orders electronically.

Furthermore, OTCEI also introduced the concept of market makers who would ensure liquidity and market depth by providing two-way quotes for securities. This contributed to the overall development and growth of the OTCEI trading platform.

Overall, the launch of OTCEI trading on November 3, 1992, revolutionized the Indian financial market by providing a dedicated platform for SMEs and facilitating the growth of the capital market in India.

FAQ:

What is the OTCEI trading start date?

The OTCEI trading start date refers to the date when the Over-The-Counter Exchange of India (OTCEI) commenced its trading operations. It was on June 21, 1990 that the OTCEI started trading in securities.

What is the significance of the OTCEI trading start date?

The OTCEI trading start date holds significance as it marks the beginning of a new era in the Indian stock market. With the introduction of OTCEI, small and medium-sized companies had a platform to raise capital and get listed on the exchange, which was previously dominated by large corporations.

How did the OTCEI trading start date impact the Indian stock market?

The OTCEI trading start date had a significant impact on the Indian stock market. It provided a platform for the trading of securities of small and medium-sized companies, which were previously neglected by the established stock exchanges. It facilitated the growth and development of these companies by providing them access to capital and visibility in the market.

Can you provide some information about the OTCEI?

The OTCEI, or Over-The-Counter Exchange of India, was established in 1990 with the objective of providing a trading platform for small and medium-sized companies. It was India’s first exchange to introduce electronic trading, and it aimed to bring transparency, efficiency, and investor protection to the stock market. The OTCEI allowed companies to raise capital by issuing securities and getting listed on the exchange.