Even the ``falodias'' (those who specialised in unofficial kerb trading but were put out of business after the market regulator banned after-market deals) are now hopeful of a fresh attempt at survival. Scores of jobbers and falodias have now turned their attention on the once-neglected OTC after it announced the launch of its after-market trading session, branded OTCEI Hi-Trade Market (OHM). This new segment would be open from 4.30 pm to 7.30 pm and deal in 500 liquid stocks which are already traded on BSE and NSE.

Such has been the enthusiasm among the jobbers and the falodias, that a small group of them have been meeting some top brokers to seek guidance on how they should now go about building a livelihood through the OTC. These jobbers have been advised to start off by grabbing the dealerships of the exchange, which is available at much lower rates than the BSE and NSE memberships.

And the evening trade segment has come as more than a blessing for the exchange as well, languishing as it was with puny volumes and a lack of investor interest.

OTC's managing director Praveen Mohnot says his exchange has sold more than 40 new membership applications after the OHM session was announced, and the exchange has also received more than 400 applications for renewal and transfer of membership from centres as widespread as Rajkot, Bhavnagar and other distant, small centers.

He emphasises that OTC is the only electronic exchange, after the BSE and NSE, which has a national presence with close to 1,000 members and dealers.

Interesting to note that prior to the announcement of OHM, out of these 990 members only 10 per cent (less than 100 members) were actually active in the market.

According to Mr Mohnot, the OHM session can begin with 150 to 160 members and this strength is sufficient enough, though many more applications are in process, awaiting Securities and Exchange Board of India (Sebi)'s clearance.

``Within three months, we want to reach a level of 300 members going for activation and the daily turnover should reach Rs 300 crore," he says. OTC posted a gross trading volume of over Rs 3,600 crore for the calendar year 2000 which is much smaller than the volumes generated at the BSE and NSE in a single day.

Mr Mohnot, who has initiated a `Mission Activation' plan for the exchange, says that OTC has waived the past dues of several members and relaxed membership transfer norms. The exchange has also done away with the transaction charges, and this has revived interest in trading on the exchange, he says.

OTC admits a member to the exchange with an admission fee of Rs 24 lakh (inclusive of permitted and technology fees) plus an annual fee of Rs 10,000, while a dealer is admitted with an admission fee of Rs 10 lakh and annual fee of Rs 5,000. Both these fees are non refundable, non adjustable and interest free.

At present, OTC has close to 100 securities listed on the exchange while there are 400-odd securities which are traded under the permitted category.

The list of permitted securities include all the liquid stocks listed on BSE's "A" group and also those traded under NSE's ALBM. All these 500 odd stocks will be offered for trading in OHM, says Mr Mohnot.