CDSC stands for Central Depository and Settlement Corporation. Investors’ securities are stored electronically at CDSC. This eliminated the use of certificates in trading at the Nairobi Stock Exchange.
Certificates need to be immobilized into a CDS account in order to be able to trade the shares. This involves filling a CDS 2 form and submitting it together with the certificate to CfC Stanbic Financial Services for forwarding to the registrar and CDSC for crediting to your CDS account.
This is as a result of a new regulation from the Capital Markets Authority that requires stock brokers to carry out a due diligence on their clients. The process enables us to identify and ascertain relevant information pertinent to doing business with you. A key benefit of this process is that it will enable us to prevent identity theft, fraud and thereby protect your investment with us.
CDSC account opening process should be done ideally, within the hour if the account opening form is in order and all the KYC requirements are in place, and are all available at the KYC centre at CfC Stanbic Building Kenyatta avenue. However, this may not always be the case.
a) Where extra due diligence is done on a client in line with the KYC /AML policies, the account opening process may extend beyond the hour to within the day.
b) If the KYC documents and account opening forms are received at a CfC Stanbic Bank branch out side Nairobi, the CDSC accounts should be opened within 48 hours.
c) For CfC Stanbic Bank branches within Nairobi, the CDSC account opening process should be done within 36 hours of delivery to the branches. In all cases, clients are alerted by the KYC team immediately their CDSC accounts are opened, to allow them to fund their accounts in readiness for a trade.
The Nairobi Stock Exchange (NSE) is where shares (Equities) and bonds (Fixed Income Securities) are traded. The NSE is open Monday to Friday from 8.00 am to 5.00 pm. Trading sessions are from 9:00 am to 3:00 pm. The NSE is closed on public holidays.
The Capital Markets Authority (CMA) is a government organization that regulates the Capital Markets of Kenya. Its role includes overseeing the operations of the Nairobi Stock Exchange, the Central Depository and Settlement Corporation, and licensing of stockbrokers.
A bond is a loan between a borrower and a lender. It is a debt investment in which an investor lends the government or a corporation funds for which he receives periodic interest payments known at coupons.
Collect a CDS opening card from Central Bank of Kenya with an original copy of your identification. The card has three sections:
The investor takes the card to his/her bank for the bank signatories to sign and have the banking details filled. Together with this, the investor should present a copy of the ID/ Passport and a passport sized photo for certification by the bank. Once the card has been filled, the client personally takes the card back to CBK together with the following;
This form is completed by the investor who wishes to open a CDS account to trade in shares and bonds at the Nairobi Stock Exchange. The form is also used to change contact details or dividend disposal of an existing account.
This form is used to deposit share certificates into an existing CDS account (immobilization). The investor completes the form which is then forwarded to the Registrar for verification, who then advise the CDSC to credit the shares into the client’s CDS account.
This form is completed by the investor who wishes to withdraw their shares from the CDS system. Should such an investor wish to trade the same later, they must immobilize the shares back into their CDS account.
This form is completed by the investor who wishes to transfer their securities from one CDA (Stockbroker or Custodian) to another.
This form is used for borrowing money against securities held in the CDS account. The form is completed and signed by the investor and the CDA as evidence and authenticity of ownership of the securities. The lending institution then signs and delivers the form to CDSC through the CDA for their action. The form must be accompanied by a letter in duplicate copy written to the CDSC by the lender giving instructions to place a lien on the shares. The CDSC ensures that the lenders interests are protected until the loan is fully paid. A fee of Kshs 1,000 is payable to the CDSC for this service.
This form is used to release securities for which the loans have been repaid. The lending institution signs and stamps the form and sends the form to the CDSC through us, the CDA, with a letter in duplicate copy requesting the release of the shares and KShs 1,000 payable to the CDSC. The form is also used to deposit foreclosure securities for the purpose of sale once an individual has defaulted.
This form is used for private transfers of securities from one account to another. Approval for private transfers must be obtained in accordance with the CMA requirements before submitting the form to CDSC for action.
A CDS 4 form needs to be filled in order to move shares from one broker to another. This form indicates where the shares are being transferred from, and where you would like them to be transferred to. The form needs to be signed by both brokers.
No. Share prices can only go up or down by 10% from the previous days average prices. Prices must lie within this price range. In addition, price spreads must be considered when giving in orders as follows;
We accept deposits in cash, cheque, RTGS, telegraphic transfer, or EFT. Account Name: CFCSTANBIC FINANCIAL SERVICES. Bank name: CfC Stanbic Bank Account No: 58904 Branch where account is held: Chiromo Swift Code: SBICKENX OR; Account Name: CFCSTANBIC FINANCIAL SERVICES. Bank name: Barclays Bank of Kenya Account No: 1323088 Branch where account is held: Eldoret Swift Code: BARCKENX
Kindly remember to always quote your CDS account number when transferring funds.
OST stands for Online Share Trading. CSFS has developed a revolutionary Online Share Trading product developed to give investors real time access to their share trading accounts. Investors have direct access to investing in the Nairobi Stock Exchange using a customized trading system, Active Lite that gives real time access to; a. Transactional Statements b. Portfolio valuation c. Contract notes d. Order Status Tracking. The benefits include:
a. Transparency on your CDSC account
e. Time Saving
f. Access to real time market information
CfC Stanbic Financial Services offers its clients real time access to market prices, research information, and 24 hour access to their trading accounts giving them full control of their investments. The platform allows clients to place orders, view real time market prices, view their transaction statements, portfolio valuations, and contracts.
The online platform gives clients real time access to their transaction statements, 24 hours a day. Clients may also receive their transaction statements from any CfC Stanbic Financial Services branch.
To trade online at CSFS, one is required to first open a CDS account. Once the account is opened, the Online Share Trading account can be activated online by visiting our website to register. On registration, your log in and password details will be sent to you and you may proceed to enjoy the convenience of trading online.
Yes. You are required to sign a mandate on account opening. This gives one person authority to trade on the account. This is the person given access to the account for online trading. For a corporation, the mandate must be accompanied by a board resolution giving the said person authority to trade on the account.