Q. Consider the following statements regarding “Over the Counter Exchange of India Ltd (OTCEI)”:
1.It is India’s first fully computerized stock exchange.
2.Trading in this exchange takes place via brokers and commission is market based and not fixed.
Which of the statements given above is/are correct?
Red Book
Red Book

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation: Though the Over-the-Counter Exchange of India Ltd (OTCEI) was set up in 1989, it could commence trading only in 1992.

  • India’s first fully computerized stock exchange was promoted by the UTI, ICICI, SBI Cap among others, in order to overcome problems such as lack of transparency and delays in settlements prevalent in the older stock exchanges.
  • Another important goal of the exchange was to allow stock market exposure to comparatively smaller companies (companies with paid-up capital from Rs. 30 lakh to Rs. 25 crore are enlisted here).
  • Trading in this exchange takes place via market-makers and commission is fixed.

Source: Ramesh Singh

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