OTC Exchange of India
Prioritize liquidity analysis for securities traded on the OTC exchange, focusing on average daily turnover and bid-ask spreads. The NSE Emerge platform, a key OTC segment for SMEs, recorded a 68% YoY increase in trading volume during FY 2023-24, with 83 new listings raising ₹1,240 crore collectively. Stocks like Zeal Aqua and DroneAcharya achieved 120%+ returns post-listing, driven by mandatory market-maker commitments ensuring baseline liquidity.
Cross-verify issuer disclosures with SEBI’s EDGAR-equivalent database, SCORES, before transacting. Companies with audited financials for three consecutive years show 27% fewer regulatory disputes. The platform mandates 21-day advance notice for material events, including pledge creation or auditor changes–non-compliance penalties doubled to ₹10 lakh in March 2024.
Leverage fixed-price discovery windows for pre-IPO shares. Thirteen companies utilized this mechanism in Q1 2024, averaging 14% premium over anchor investor pricing. Settlement cycles operate on T+2 basis, with failed transactions incurring 0.05% daily interest charges. Brokerage caps (0.5% for delivery, 0.025% for intraday) apply across all OTC trades.
Track sector-specific performance: healthcare and fintech SMEs outperformed manufacturing peers by 19% in H2 2023. Platform fees range from 0.3% for bulk deals exceeding ₹50 lakh to 1.2% for retail transactions. Mandatory escrow accounts for 25% of issue size during IPOs reduced post-listing volatility by 37% since 2022 reforms.
Utilize SEBI’s mandatory 45-minute pre-open session to gauge order imbalances. During April 2024, corrected orders prevented 12 potential price manipulation attempts. All OTC-listed entities must maintain public shareholding above 25% post-listing, enforced through quarterly disclosures to avoid suspensions.
