Reliance Cap, MCX, Spice in race for stake in OTCEI

Anil Ambani group firm Reliance Capital, MCX SX and B K Modi's Spice Group have evinced interest in picking up a stake in the Over-The-Counter Exchange of India (OTCEI).

"MCX, Reliance Capital and Spice have submitted their bids for a stake in OTCEI," sources in the know of the development said.

OTCEI is one of the oldest exchanges in the country, which was set up to help small and medium-size companies raise funds through the capital market.

It is promoted by banks and financial institutions such as IDBI Bank, IFCI, ICICI Bank, Life Insurance Corporation and General Insurance Corporation.

The bids submitted by Reliance Capital, MCX SX and Spice Group will be opened on June 3, following which the winner will be announced, sources said.

When contacted, Reliance Capital declined to comment on the development.

"We have no comments to offers," said a MCX SX spokesperson.

Set up in 1990, OTCEI has only 115 companies listed on it and has helped provide capital to small and medium enterprises (SMEs) like VIP Advanta and Sonara Tiles.

It is the only exchange that allows listing of companies with paid-up capital as low as Rs 3 crore.

Established even before the National Stock Exchange, OTCEI was the first exchange to introduce screen-based trading.

Market players said the three companies bidding for OTCEI stake would get a readymade SME platform for the proposed SME exchange.

Last month, market regulator the Sebi relaxed the listing requirements for small and medium enterprises on proposed stock exchanges dedicated to the sector, a move likely to encourage SMEs to get listed.

"Certain relaxations are provided to the issuers whose securities are listed on (the proposed) SME exchanges in comparison to the listing requirements in the main board," the regulator had said.

Among the major relaxations, the listed SMEs can send shareholders just an abridged annual report, instead of a full version, it added.

Further, SMES are also allowed to submit their periodical financial results on a half-yearly basis, instead of on a quarterly basis, the regulator said, adding, "SMEs need not publish their financial results, as required in the main board and can make it available on their websites."