Otcei Drafts Plan To Cut Outstandings

Praveen Mohnot, managing director, OTCEI, said, "Currently, the problem ahead of the exchange is outstanding dues from member/dealers and we have drawn up several initiatives in this regard, and close to working out a mutually workable formula to both member/dealers and the exchange."

Currently, OTCEI has a dispute with a number of members/dealers in regard to payment of technology and upgradation fees and permitted technology fees. The exchange has outstanding dues of around Rs 5-6 crore.

Meanwhile, OTCEI, in an attempt to increase liquidity and volume, is changing its settlement cycle to Friday-Thursday (Friday will be the first day and Thursday will be last day) with effect from August 18.

The exchange, at present, has more than 900 dealers, of which 350 members are also members of the National Stock Exchange.

Adds Mohnot, "A different settlement cycle will help the members to arbitrage on a number of common stocks with other major exchanges and thereby revive interest in the bourse."

Praveen Mohnot, who took over as the managing director of the bourse on August 1, was associated with the Unit Trust of India for 12 years in various capacities.

Mohnot succeeds Joseph H Bosco, who has been reverted to the National Stock Exchange.