Question

Which of the following is/are the demerits of OTCEI?

• A. Poor liquidity of Scrips
• B. Delay in Settlement
• C. Lack of Transparency
• D. All of the above

Answer 1

The correct option is D All of the above

The OTCEI is a company incorporated under the Companies Act 1956. OTCEI was set up to provide small and medium companies an access to capital market for raising finance. OCTCEI is advantageous to the company because it provides methods of raising funds through capital market instruments which are priced fairly. Following are the demerits of OTCEI:A) Poor liquidity of ScripsB) Delay in Settlement

C) Lack of Transparency.