Otc Panel For Removal Of Rs 25cr Ceiling

Chief among the recommendations is the removal of the Rs 25-crore ceiling for listing on the bourse, and listing of stocks de-listed for various reasons on other exchanges, except for lack of trading.

Dave told Business Standard that it would take more than a year for the effects of the recommendations to be felt. Citing the Nasdaq example, he said the exchange took time to develop before emerging as a major force.

The committee has also recommended that the Sebi norms on three-year dividend track-record and minimum shareholding be waived for OTC listings. It has mooted the idea of a Rs 50-100 -crore dedicated fund for earmarking investments in OTC-listed companies.

It has also suggested a weekly settlement system for the permitted group of stocks on the bourse, and relaxing the settlement from the present T+3 to T+5 cycle for listed stocks. It has been suggested that unlisted stocks be allowed to trade so that mutual funds can have an exit route.