At the end of the E A Cables AGM, Peter Waiyaki, chief executive of the Central Depository & Settlement Corporation answered questions on the new system of trading shares on the Nairobi Stock Exchange (See linked article: NSE’s New Way of Doing Business) He mentioned that:
– Even if you don’t intend to trade your shares, you should open a CDS account. You can open an account, and not put your share in, as you wait for new opportunities to trade
– The Kengen IPO and future new offerings will be done though CDS only (no more paper share certificates)
– With CDS trading is faster (if you sell shares you broker should have your cheque within five days)
– one day you’ll be able to trade though internet, but now
– is confidential: only you, your broker and CDSC know what’s in your account
– if you want to transfer shares to a friend or relative, you still have to go though your broker and fill out transfer forms
– you can get old certificate back after immobilization, (some people like to hang share certificates in their office) at a cost of 500 shillings each
– with CDS, it is easier for you to pledge shares as collateral for a bank loan