Page 326 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 14: Securities and Exchange Board of India

The licensed dealers should have adequate organizational infrastructure such as offi ce space, Notes
compound PTI scan, telephones (minimum two), telex, fax and other data communications
equipment specifi ed.
Licensed dealers should at least be graduates. Additional weightage will be given for additional

ratio professional qualification. Licensed dealers should have adequate knowledge of trading,
stock valuation, share transfer rules and relation.
Apart from the above, the licensed dealers will be required to comply with the following terms
and conditions:
(a) If the applicant is a corporate body, the promoters should hold at least 40% of the equity
capital.

(b) In case of change in dealership from individual/partnership firm to a corporate body
original individual dealers/shares of the partnership firm should hold at least 40% of the

capital of the new corporate body.

(c) Partnershipfirms and corporate applicants must nominate one of the authorized signatories

whose signification will be considered for eligibility and the same person will be required
to take a written test and appear in interview.
(d) Dealership is not transferable.
(e) If there is a change in shareholding of a body corporate who is a dealer, resulting in change
in ownership management, the OTC Exchange of India reserves the right to review the
status of dealership of that dealer.

Did u know? Stock market regulator Securities and Exchange Board of India (SEBI) on
Friday banned Reliance Anil Dhirubhai Ambani Group (ADAG) Chairman Anil Ambani
from investing in stock market till December.
The SEBI imposed the ban after receiving information that ADAG is raising money through
external commercial borrowings and/or foreign currency convertible bonds, and investing the
amount in stock market.
According to reports, Ambani and four board members of Reliance Natural Resources Limited
(RNRL)- are Satish Seth, Lalit Jalan, SC Gupta and JP Chalsani-have been barred from stock
market investment till SEBI completes its investigations into the case.
SEBI also banned two of Ambani’s group companies-RNRL and Reliance Infrastructure from
the secondary market for two years.

Criteria for Admission (for Listing) of companies

The company should be sponsored by a member of the OTCEI. The sponsor has to certify that
all the scrips proposed to be offered for trading on OTC Exchange have already been subscribed
to by members and licensed dealers of OTCEI.
The company has to agree to abide by all statutory and OTCEI’s provisions for listing.

The company to agree to entered into an agreement with the OTCEI in a prescribed format.

The company will comply with the provisions laid down in the Notification to be issued by the
Government of India; subscribed to by members and licensed dealers of OTCEI.
The company to agree to abide by all statutory and OTCEI’s provisions for listing.

The company will comply with the provisions laid down in the Notification to be issued by the
Government of India, for listing on the OTC Exchange of India.

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