In compliance with the regulations of the Central Register, Central Register is required to transfer shares to your ownership account that you specified in your sell order within the timeframe of 3 days from trading day.
In compliance with the regulations of the Stock Exchange, the broker who represents the seller is required to reserve shares that were in the order from the Central Register before proceeding with an order on the Stock Exchange. With this in mind, the broker is definite that ownership of shares are valid that he places into offering on the Stock Exchange. Therefore, he can complete transfer of shares to the buyer while simultaneously paying out the seller on behalf of the client after closing note of trading.
In case the Central Register cannot complete transfer of ownership to the buyer in the given timeframe, a denunciation against him is enforced, which could mean revocation of his license, which would be a huge downfall that no brokerage firm would be willing to risk. The Central Register escorts forced procedures for purchasing of shares that later are transferred to your account.
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