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OTCEI to shift blue-chip stocks to national segment
Our Market Bureau
Mumbai, Jan 18: The Over the Counter Exchange of India, in a bid to give a fillip to trading in some of its blue-chip stocks, plans to shift some scrips to the national market segment (NMS). Aryan Pesticides, which recently applied to the OTC for listing on the NMS segment, will be the first to be shifted to the NMS. Incidentally, the company has also applied for listing on the Bombay Stock Exchange. This move will enable the exchange to provide a platform to increase liquidity in those stocks which have been underperforming in the listed segment.The transactions are settled on a weekly basis on the NMS which is more advantageous than the listed segment, which follows the rolling settlement. THis stock will be now traded on both the listed segment and the NMS. The NMS has been launched to accomodate stocks listed on the other exchanges. OTC has permitted multiple listing from October. The rationale behind creating a seperate segment like the NMS is also to give certain preferential treatment to some
stocks with strong fundamentals listed on the exchange and also to boost trading. The trading software on the NMS segment is the DELTA software developed by CMC. This is the same trading software used on the permitted segment. Trading in this segment is order driven, similar to that on the permitted segment while on the listed, trading is done on a quote driven system. This segment has a weekly settlement system similar to that on the permitted segment. The National Securities Clearing Corporation Ltd (NSCCL) will handle the settlements system for this segment. Trading in NMS has commenced with units of UTI Mastershare and Mastergrowth listed first. Companies listed on the OTC and not on the National Stock Exchange could not move on to the NMS since the NSCCL system could not accomodate these scrips. This has now been settled by both the OTC and the NSCCl.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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