Recommended Reading: Over The Counter Exchange of India(OTCEI)
Trading on OTCEI:
Trading on OTCEI is the first of its kind in India. It is fully computerised set-up where trading takes place through a network of computers at the member/dealer end which in turn are connected to a central computer at OTCEI, Mumbai.
- Initial Allotment: The tradable document on OTCEI is the Initial/Permanent Counter receipt. The investor who has been allotted a share on OTCEI would be receiving an Initial Counter Receipt.
- Buying Process in the Secondary Market: An investor desiring to purchase shares listed on OTCEI in the Secondary market would have to first get himself registered at any of the counters if he has not already registered himself. Then he can approach any of the counters of OTCEI situated in any part of the country and specifies the scrip name and the quantity that he desires to purchase. The investor can specify the price range for the scrip he wishes to purchase. When the transaction takes place, the investor is given a Permanent Counter Receipt (PCR).
- Selling Process in the Secondary Market: An investor, who has been allotted securities or who has purchased securities in the secondary market, can approach any of the counters situated in the country and fill in a Order Request From specifying the scrip name and the quantity that he desires to sell. The investor has to surrender the PCR + Transfer Deed (TD) to the counter. In case, the PCR is a non-transferred PCR, then the investor has only the PCR to surrender.