Accounting Records for Buying and Selling Transactions of OTCEL

 FOB Shipping Point :

• Transfer of ownership of the products occurs at seller’s shipping point.

 FOB Destination Transactions:

• The products in transit to the buyers are still the inventory of the seller.
 Purchasing with Credit
A business records purchases of goods with credit differently than cash transactions. Accepting credit in
exchange for products.

 Recording Shipping Costs

Accounting for shipping costs depends on the type of FOB transaction employed during the sale of
products. In an FOB destination transaction, the seller records shipping costs as business expenses because
the seller is responsible for ensuring product delivery
 Nature of Transaction

There are two type of nature of transaction

1. Settlement of trades.
2. Cash and forward
 Listing in OTCEI

Procedures (Listed Securities)

 Appointment of a Sponsor
 Sponsor to appoint Market Makers
 Submission of registration application (with relevant documents) & getting approval (valid for 6
months)
 Submission of draft prospectus with OTCEI for approval
 Submission of Notice of Issue / Offer
 Finalization of basis of allotment of securities
 Filing of application for Listing
THANK YOU