Giordano Stomberg
Freshie
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- Jul 1, 2010
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The regulatory authority announces from time to time the list of commodities, that can be delivered only in the demat form through the commodity exchanges connected to the national depository. To trade commodities online, a different set of rules and regulations are now applicable. Consider the time taken for dematerialization of commodities. The participant and the regulatory authority have no control on the time taken for dematerialization of a commodity.
The Registrar and Transfer (R & T) agent of the company has to process the request of a trader and then inform the regulatory authority that the commodities have been dematerialized. Inordinate delays have been observed in the process and very recently, the lead banking authority is constantly monitoring the outstanding requests to dematerialize a commodity.
If you are planning to trade in your existing portfolio held in the physical form, it is recommended that you should give yourself not less than six weeks for the dematerialization of that particular commodity. This is because the R & T agent and the company are within the purview of the Companies Act and not the regulatory authority. The regulatory authority can only recommend expeditious processing.
Online commodity trade offers significant benefits to all those involved. It is because a trader can interact with clients from across the world. With the advent of globalization, the very basics of commodity trade have undergone a sea change. Gone are the days when elaborate paper work was involved in getting things done through the snail mail that often involved much delay.
Traders that have taken to online commodity trade do not want to come back and trade in the physical form. It is now possible to identify a market that offers the best price for a particular commodity. If a customer is satisfied with the service provided, then it is possible to forge a long-standing partnership with that firm. One satisfied customer may tell another prospective client and thus the commodity may sell like hot cakes.
The Registrar and Transfer (R & T) agent of the company has to process the request of a trader and then inform the regulatory authority that the commodities have been dematerialized. Inordinate delays have been observed in the process and very recently, the lead banking authority is constantly monitoring the outstanding requests to dematerialize a commodity.
If you are planning to trade in your existing portfolio held in the physical form, it is recommended that you should give yourself not less than six weeks for the dematerialization of that particular commodity. This is because the R & T agent and the company are within the purview of the Companies Act and not the regulatory authority. The regulatory authority can only recommend expeditious processing.
Online commodity trade offers significant benefits to all those involved. It is because a trader can interact with clients from across the world. With the advent of globalization, the very basics of commodity trade have undergone a sea change. Gone are the days when elaborate paper work was involved in getting things done through the snail mail that often involved much delay.
Traders that have taken to online commodity trade do not want to come back and trade in the physical form. It is now possible to identify a market that offers the best price for a particular commodity. If a customer is satisfied with the service provided, then it is possible to forge a long-standing partnership with that firm. One satisfied customer may tell another prospective client and thus the commodity may sell like hot cakes.
