MUMBAI, February 23: Shriram Investment Ltd has developed a novel idea to market its OTCEI counter in regional areas. The company has entered into an agreement with some Madurai-based stock enthusiasts operating illegally as brokers. These entities have set up an association called the Association of Madurai Brokers.The association, though not recognised by SEBI, functions like an exchange, with its own rules and regulations. It also has a building of its own for its operations and members deal in shares complete with contracts and physical delivery.
Sensing that these "brokers" have an appetite for investment and a client base as well, Shriram has decided to tap them as clients for its OTC counter. This will obviate the need for any marketing drive by SIL in the area.
It has set up a counter in the building to enable members of the association to use the same. These brokers can become clients to the OTC dealer and trade on a screen-based trading system. SIL, which is a dealer on the OTCEI, has opened17 counters all over the country which include places like Madurai, Nashik, Sholapur and Aurangabad. Many of these centres have no stock exchange recognised by SEBI, although they have their own community of "brokers". These "brokers" have established themselves as associations.
SIL feels that the move to align with these associations will provide a measure of credibility to these unrecognised brokers. This is only possible in remote centres as the major metros and cities already have a regional exchange in place.
The company is also planning to get into a similar agreement for its Nashik and Aurangabad counters. Shriram is paying more emphasis on developing the debt market on the OTC and believes that the exchange can carve a niche for itself in the debt market.OTC's debt segment launch delayed
The national debt segment on the Over The Counter Exchange of India, which was to be launched in January, has been delayed indefinitely. The exchange has already set up the entire system and tradingsoftware. OTCEI plans to combine the corporate debt segment with the government securities in the national debt segment.
OTCs debt segment launch delayed
The national debt segment on the Over The Counter Exchange of India, which was to be launched in January, has been delayed indefinitely. The exchange has already set up the entire system and trading software. OTCEI plans to combine the corporate debt segment with the government securities in the national debt segment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
