``There has to be an economic rationale to its existence, we need to review trading and practices to make OTCEI a third alternative market,'' he said at the Invest india Summit here.

No system is sacrosanct, procedures have to be reviewed to make it competitive and unless it is competitive it will not succeed, kar said. Business has also been dwindling at the regional stock exchanges and if the proposed interconnectivity of these exchanges is properly executed, it would go a long way in creating an efficient order execution system and a national market, he said.

The sebi is also reviewing the stock lending system, which is yet to take off, with a view to removing the impediments in it, he said adding the market regulator was talking to the Unit Trust of India and the Stock Holding Corporation to see how best it could bepromoted.