All top stock trading companies follow transparent policies in all their operations. However, with the advent of online virtual trading platforms, things have become much easier. When compared to the previous approach, what is being followed now is an innovation of sorts. Old people that were part of the previous trading system have taken to the new model with ease.
Consider the issue relating to defacing of share certificates. The investor must deface the certificates with words only after confirmation from the depository participant that the shares are in the ‘demat’ list. When share certificates are surrendered for dematerialization, they should be at least four inches in length, and one inch in width. This should be done only after the depository participant confirms that the securities are on the ‘Demat List’. This precaution is recommended because once the certificates are defaced, it will have to be reissued by the issuer company's Registrar & Transfer (R & T) agent.
The depository participant will cancel the certificates by drawing two parallel lines across the certificate and punch two holes on the company name before forwarding the same to the issuer through its registrar and transfer agent. The regulatory authority has issued necessary guidelines to the depository participants after suitable amendments in the provision of the relevant acts/regulations. This step has been taken to protect the rights of the investor community.
The above-mentioned procedure is rather a cumbersome one. With the advent of virtual trade, all these documentations are now over at the click of a button. Generating reports is a totally hassle free process. The concept of virtual trade in shares is now spreading across the globe. Investors can certainly enjoy the difference to manual trade wherein the investor had to be physically present at the stock market. It is now possible to enter into stock trade from any other part in the world. Prominent stock exchanges now offer the option of offline trade as well when live trading has concluded.