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Tuesday, November 24, 1998

FIIs jump on to OTCEI bandwagon 

Our Market Bureau  
Mumbai, Nov 23: HSBC Securities has joined the OTCEI bandwagon for trading on the exchange, which is likely to give a boost to the restructured bourse. A number of other FIIs have also made enquiries for OTCEI cards, according to the managing director of the exchange, Joseph Bosco.

Four cards have been sold at par value (Rs 6 lakh) or at a slight discount, in the past few days. The exchange also launched dematerialised trading in 183 scrips in the permitted segment on Friday.

``The trading on OTCEI will increase substantially as the demat option has become available. Brokers were very keen on trading in demat and thus we will see much more activity as demat trading would give an impetus to institutional activity on the exchange,'' said Bosco.

OTCEI which started restructured operations from October 19 has witnessed an average daily turnover of Rs 1.25 crore in the period October 26 to November 20. The volumes in terms of number of trades averaged at 210 daily. The period saw active trading in Reliance,SBI, Tisco, Telco, ICICI, ITC, Infosys, Satyam, L&T, ACC and Geojit Securities. ``An average number of 64 brokers log on to the OTCEI terminal everyday and many more are actively being added everyday. In the next two weeks we are also adding a few scrips immediately to our permitted segment from the B1 and regional category of scrips,'' said Bosco.

The exchange will keep on adding a few scrips every month to its permitted segment to increase the scope of trading on OTCEI.

OTCEI had earlier identified more than 500 scrips which will be put on the permitted segment of the exchange. These include about 364 existing blue chips at the National Stock Exchange (NSE), about 257 additional NSE scrips (107 were in the permitted category of NSE which is now dead), about 100 B1 and B2 group stocks listed at the Bombay Stock Exchange (BSE) and about 40 scrips which are regional in nature. All these securities will be put on the permitted category.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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