Wednesday, 17 May 2017

LIST OF OTC EXCHANGE OF INDIA LISTED COMPANIES SHIFTED TO DISSEMINATION BOARD (I.E DASH BOARD)


The OTC Exchange of India (also known as Over-the -Counter Exchange/ OTCEI), was incorporated in year 1990. OTCEI was the first ever exchange formed in Mumbai, India for small companies. It was set up to set up to access high-technology enterprising promoters in raising finance for new product development in a cost-effective manner and to provide a transparent and efficient trading system to investors. OTCEI i.e Over – The –Counter Exchange was promoted by major Institutions of India such as UTI, ICICI, IDBI, IFCI and others.

With SEBI (I.E Securities and Exchange Board of India) circular No. CIR/ MRD/ DSA/ 14/ 2012 dated 30th May, 2012 all the regional stock exchanges was closed down. All the Regional Stock Exchanges were provided an exit option to the de-recognised stock exchanges and recognised stock exchanges seeking voluntary surrender of recognition ("exiting RSEs") as per the SEBI order. Companies listed exclusively on exiting or de-recognised RSEs will be required to seek listing on atleast any other RSE that is not seeking de-recognition and exit in terms of the aforesaid SEBI Circular. As per the aforesaid SEBI Circular, companies failing to list on any other RSE, such companies will be treated as an unlisted company and shall be moved to Dissemination Board (DB) by such exiting or de-recognised RSE.

(Read full order of SEBI - SEBI ORDER ON REGIONAL EXCHANGES)

SEBI has directed all exchanges that do not possess a trading platform with an annual turnover of at least ₹1,000 crore and a net worth of ₹100 crore, and that do not have a tie-up with a clearing corporation, to exit. Since OTCEI i.e Over – The -Counter Exchange was not able to meet the SEBI standard for operating as exchange, it got shut down by SEBI in Year 2014-2015.

OTCEI had many valuable and noteworthy companies with strong financial background and management control, such as, Anglo French Drugs, Electronics Plastic Machines, Zim Laboratories, Temba Shipyard, Karthik Alloys, Fancy Fittings, Eastern Synpacks , Mercury Laboratories, etc

Many of these OTCEI listed companies got listed on national wide stock exchanges i.e BSE(Bombay Stock Exchange), NSE(National Stock Exchange), Metropolitan Stock Exchange or Kolkata Stock Exchange. Many companies have also come out with buy back offer for their shareholders to provide them liquidity option.

ADVANTGES TO SHAREHOLDERS:De-recognized/ regional/ dash board companies are more beneficial source of investment since these companies have to be compulsorily come out with either buy back ie exit offer for investors or list themselves on recognized national level exchanges. Thus Investors have a good opportunities to be the part of valuable stock on such exchanges and get a short term exit route. SEBI has been receiving representations seeking clarifications on raising of further capital and the process of exit of ELCs from the DB. Therefore, in the interest of the investors of such ELCs, it is decided to extend the time to submit the plan of action till June 30, 2017.

 List of OTC Exchange of India (i.e OTCEI) ListedCompanies



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