CDSC stands for the Central Depository and Settlement Corporation Ltd a company incorporated under the Companies Act and approved to establish a central depository under the Central Depository Act, 2000.

Who are the shareholders of CDSC?

• NSE – 20%
• AKS Nominees Ltd– 18%
• Capital Markets Investor Compensation Fund – 7%
• Capital Markets Challenge Fund Ltd – 50%
• Uganda Securities Exchange Ltd – 2.5%
• Dar es Salaam Stock Exchange Ltd – 2.5%

Who are the directors of CDSC?

Charles Ogalo - Chairman
Ndung’u Gathinji
Stewart Henderson
Jimnah Mbaru
Ashok Shah
M. Soundararajan
Tony Wainaina
Pauline Nyamweya
Jonathan Njau
Simon Rutega
Patrick Gakiavi

What is the CDS?

CDS stands for the Central Depository System. This is a computer system that facilitates holding of securities in electronic accounts and manages the services offered by the CDSC.

How do I open a CDS account?

By completing and signing a securities account opening/maintenance form with your CDA.

What do I need to open a securities account?

You need two recently taken passport photographs, original National ID or passport, in the case of a company you need the original certificate of incorporation, and if you are an organization registered in any other way you need the certificate of registration.
You need to sign the form before your CDA.

What is a CDA?

A CDA is a central depository agent – either a stockbroker or a custodian bank who has been authorized by CDSC to open accounts in CDS on behalf of clients.

Who are CDAs?

All stockbrokers are CDAs. In addition, Barclays Bank, Stanbic Bank, KCB and NIC Bank (through their custodian departments) are CDAs.

What do I get when I open an account?

You will obtain from your CDA a CDS account number together with a duplicate copy of the account opening form for your records. You will also agree a secret question and answer with your CDA for purposes of identifying you. Please keep the question and answer confidential.

What do I deposit in a CDS account?

Shares. From time to time CDSC and NSE will notify the public through the press of shares which have been chosen for depositing in CDS accounts. Sometime next year (2005) the CDS will be open for depositing of bonds.

Must I open a CDS account?

Yes, if you intend to trade in shares which have been selected for depositing.

Can I use a different broker from the one I have been using?

Yes, you can use as many brokers as you want.

How can I move from one broker to another?

By completing and signing the Securities Transfer Form, supplied to you by your broker. The form must be signed also by your current CDA and your new CDA.

Will it cost me more to use CDS?

No. There is absolutely no increase in cost for the CDS accountholder.

How will CDSC make its money?

CDSC will charge a transaction levy of 0.06% on all trades. This levy will be paid from the existing levies. Additionally CDSC will charge 90= per transaction which will be paid by listed companies. Investors will not pay more.

What if the Computer at CDSC had a problem?

CDSC has offsite back up facilities and contingency measures to ensure data will not be lost, and to ensure business continuity.

What is the process of depositing securities?

1. Visit a CDA with the certificates you want to immobilize.
2. Be sure you have already opened an account or are ready to do so.
3. You will be issued with and assisted to complete a Security Deposit Form.
4. Sign your form with the signature used when buying the shares.
5. Return the form to the CDA together with the certificates you have included on the form to be deposited.
6. You will be given a duplicate copy of the completed and signed form, after the CDA has countersigned as evidence of your deposit.
7. The CDA will forward the form and the certificate to CDSC
8. CDSC will forward the certificates and forms to the company’s shares registrar for verification.
9. When the registrar confirms the certificates as genuine, the shares will be deposited in your account.
10. Once the shares are in your account you can trade in them.

What do I get to prove I have deposited securities?

• You get the duplicate copy of the deposit form
• You get a monthly statement if you have a trade that month.
• You get a quarterly statement if you have not had a trade for three months.
• The statements are issued directly to your address as indicated on the form.

What are the benefits of CDS?

CDS assures you of faster safer and easier trading in your securities. You do not have to wait for the issue of certificates before you can trade again as your shares are credited to your account 5 days after the date of trade.

Do I lose my dividends and bonuses?

No you will still get your entitlements without any change.

How long does it take to complete a trade in CDS?

5 days, from beginning to end.

Who regulates CDSC?

The Capital Markets Authority

How safe is CDS?

CDSC has taken measures to ensure the security of your shares.

Where can I ask questions about CDSC and CDS?