In the modern global economy, things have changed like never before. When entering into global commodity trading, a trader is pitted against competitors from across the globe. A new entrant into commodity trading from the developing world may be surprised by the age and other characteristics of commodity traders from the advanced world. Even minors are involved in all types of commercial activities. In the advanced countries like the United States, even in the case of accounts held by a minor in a bank, the guardian is entitled to open, operate and even close the account.

Standing instructions for credits to the account were issued recently. In the depository account opening form, there is a provision to give standing instructions to authorize the depository to receive credits automatically into the account. Investors that are active in the commodity market should authorize the depository to receive credits automatically to avoid delays and the resultant inconvenience.

However, freezing operations of an account also follows certain rules and regulations. The account holder can at his discretion, give instructions to the depository participant, to freeze operations of the account. For instance, an instruction can be given to freeze all transactions, freeze only the debit or credit transactions. As a precautionary measure, it is suggested to give instructions to freeze ‘all debit’ transactions at the time of opening the account because it is open and information is also easily accessible. The legitimate rights prescribed by the regulatory authorities in the Bye-laws and Business Rules clearly specify the procedures involving freezing of a account

Consider the nominee facility. This facility is only available to individuals holding investments on their own behalf or jointly with up to two persons. Only one nomination per account is permitted. We will explain this with an example: ‘A’, ‘B’ and ‘C’ have opened a depository account and have commodities of 10 different companies with them. ‘A’ and ‘B’, the first and second holder can nominate only one person ‘D’ as a nominee for this account. ‘A’, ‘B’ and ‘C’ cannot nominate ‘D’.

In the event of a change in the account holder’s details, an investor is required to communicate in writing any change in the information recorded by the depository participant to update records. For example, change in address, nomination, etc. A standard format has been designed for this purpose.