Otcei Future Will Depend On The Man At The Helm

One, most of their suggestions are unlikely to result in any immediate relief for the exchange, which is vital in the current circumstances.

And second, for the successful translation of these recommendations into action, the most crucial factor is the kind of person who would be at the helm of affairs at the exchange, following the end of Ajeet Prasad's term as managing director.

The importance of the latter can be gauged from the observation that the report has made of the exchange's operations having been affected by "the resignations of certain key personnel, and the low morale of the staff at the OTCEI".

 

As has been widely known, Ajeet Prasad's stint has certainly not been very good going for the OTCEI team.

A great deal of dissatisfaction was being expressed by employees with Prasads style of functioning.

Prasad has also been perceived as incapable of persuading the promoter institutions to take more interest in the exchange.

With Prasads term ending today, the search is still on for a replacement and there is widespread anxiety among intermediaries and employees about the successor, for more reasons than one.

Says Mahesh Thakkar, a dealer with the OTC exchange who was also a member of the revamp panel, " The most vital thing needed for the recommendations to be effective is their swift implementation. Any delay would be fatal".

One of the most acute problems that the OTC exchnage is now facing is that it is perceived as an exchange which does not offer capital appreciation.

This has led to fund managers staying away from the bourse, in turn resulting in sagging volumes.

Among the major recommendations that were made are ones allowing those companies that fail to fulfil the Securities and Exchange Board of India (Sebi) minimum shareholding norm, the dividend trackactory sops by themselves.