Deposits of Share Certificates
Registrars now deposit verified securities with CSCS Plc at least 24 hours before transacting on them at the trading floor. This ensures that shares to be traded on the floors are available on the trading day. Stockbrokers submit documents to the registrars for verification. Subsequently, the registrars forward the records directly to CSCS Plc. Registrars are required to deposit the electronic records of share certificates with CSCS Plc between 9.00am to 2.00pm every working day.
CSCS Plc requires stock broking firms to fund their Trading Accounts in any of the designated settlement banks before the execution of trades on the floor of the exchange. This provides the seller with settlement assurance i.e. trade proceeds will be credited to each respective trader’s account. This is a departure from the pre-CSCS Plc era where brokers sold stocks but did not have institutional assurance of receiving sales proceeds.
Settlement of Trades
CSCS Plc transmits trade data to the settlement banks on or before 5 p.m. every working day. The settlement banks are required to process the trade data by reviewing the account status of all trade participants. The trade settlement is subsequently effected through the Nigerian Inter-Bank Settlement System (NIBSS) platform on a T+3 basis.
Dematerialized Certificates: Certificates deposited with CSCS Plc are updated electronically. It is required that registrars scrutinize the securities against their records to ensure the securities and lodgment mandate/authorization is genuine. Any forgery or fraudulent act should be reported to CSCS Plc within 48 hours to enable CSCS Plc stop any transaction on the identified shares.
Update of Register
The buying and selling of shares on the floor of The Exchange affects the registers of the listed securities. The CSCS Plc sends trade data to registrars in electronic and hard copies for payment of dividends and the issuance of bonuses.
CSCS Plc has made visible strides in the capital market and will continue to respond to the needs of the securities market to further enhance transparency and speedy settlement of transactions.