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RL PAI
MUMBAI, DEC 2: OTC Exchange of India (OTCEI), which is struggling to stay afloat, has decided to position itself as a bourse for hi-tech software companies on the lines of Nasdaq Stock Market of the US. In a bid to develop a vibrant and active market for hi-tech companies in India, OTC has decided to enter into a memorandum of understanding with the National Association of Software Service Companies (Nasscom).
The new development is aimed at promoting initiatives and services of both OTCEI and Nasscom to their respective members and market constituents. This move is also directed towards introducing and improving corporate governance of Indian software companies by encouraging best practices and evolving necessary legal and regulatory framework.
OTC Exchange, promoted by financial institutions and banks ten years ago, has been finding it difficult to survive as investors have been shunning the exchange. While many investors complain of tight trading regulations, OTC has been listing only small capcompanies with poor investor interest so far. ``The million dollar question is: will OTC succeed in attracting IT companies? It remains to be seen,'' said a broker.
Nasscom president Dewang Mehta said "Indian infotech industry market cap has almost reached 15 per cent of the total market cap of Indian stock exchanges. Nasscom's aim is to create Nasdaq kind of technology stock exchanges of India which will further provide a platform to create wealth in ensuing digital economy of India".
J H Bosco, managing director of the OTCEI, said "with the recommendations of the committee, headed by Pradeep Kar, chairman of the Microland group, and the new IPO (initial public offering) norms introduced on the exchange, the OTCEI is now positioned to emerge as the exchange for technology and growth stocks in the country".
OTCEI has also put in place mechanisms to hand-hold new IT entrepreneurs through the entire stock exchange listing and market creation process. Nasscom will arrange and conduct "investor education"programs to generate awareness of investment opportunities and risks associated with software companies and provide for research and analysis of the software industry/OTCEI listed software companies for market information and business development.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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