Nasscom, OTCEI sign memorandum of understanding

BANGALORE: National Association of Software and Services Companies (Nasscom) and the Over The Counter Exchange of India (OTCEI) have signed a Memorandum of Understanding which is aimed at promoting initiatives and services of both the organisations to their respective members and market constituents. The MoU was signed here on Monday by Nasscom president Dewang Mehta and OTCEI managing director J.H. Bosco.

According to the MoU, Nasscom will nominate a representative on the Screening Committee for listing IT companies on OTCEI, develop models and methodology for rating promoters and projects of software companies planning to raise capital through the OTCEI route.

On the occasion, Mr Mehta said that the Indian infotech industry's market capitalisation had reached almost 20 per cent of the total market capitalisation of Indian stock exchanges. "Nasscom's aim is to create Nasdaq kind of technology stock exchanges in India, which will provide a platform to create wealth in the ensuing digital economy of India," he added.

Mr Bosco said that OTCEI was now poised to emerge as the stock exchange for Technology and growth stocks in the country. Nasscom will arrange and conduct Investor Education programmes to generate awareness on investment opportunities and risks associated with software companies and provide for research and analysis of the software industry.