What is the delivery certificate?
delivery certificate is a document used in the financial world to confirm that securities have been delivered individuals or brokerage. This document is also sometimes called the Delivery and Acceptance Certificate (D&A), reflecting the fact that securities have been delivered and accepted. This certificate provides legal protection to both parties involved in the transfer and is a routine part of paperwork performed in brokerage houses and investment companies.
Before delivery, the security must be checked to confirm that it is ready for delivery. If security is considered “good delivery”, this means that there are no restrictions or loads to transfer and that everything is fine. If it is not possible to transfer security, it is "bad delivery" and the problems must be remedied before the transfer can take place. Once the security is decided to be ready for delivery within the agreed financial transaction, acupial or agent cannot refuse it.
From the point of view of the Seller of Security, the delivery certificate confirms that the security actually arrived and that it was accepted by the buyer or agent of the buyer. If the Buyer later disputes the transaction validity or claims that certainty has not been delivered, the seller may submit a delivery certificate to support his position. Similarly, buyers can use the delivery certificate or its lack to prove the validity of the transaction.
individuals who work through investment companies rarely deal with delivery certificates and other paperwork related to the purchase and sale of securities. Instead, the intermediary or agent processes these documents, usually charges a small service fee to the client. According to the law in most regions, investment companies must publish lists of their fees and commissions for various services, including the amount charged for the processing of delivery certificate.
people who are not familiarAweni with details of investment would be highly recommended to work with an experienced broker or consultant to ensure that their transactions are legal and properly recorded. Incorrect filling of paperwork or taking into account the exchange securities can lead to legal sanctions, from fines to prison, even though the intention was not fraudulent. Consumers should also take care of the use of agents who are entitled to carry out trading in securities on behalf of others. Most governments require a license through government agencies.