F.A.Q

Frequently Asked Questions

  • 1. What is CDS & CDSC?

    CDS stands for the Central Depository System. This is a computer system operated by The Central Depository and Settlement Corporation (CDSC) that facilitates holdings of shares in electronic accounts, opened by shareholders and manages the process of transferring shares traded at the Stock Exchange.

    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.

  • 2. What is a CDS account?

    It is an electronic account that holds shares only.

  • 3. Do I have to open a CDS account?

    Yes, if you intend to trade in shares that are listed on the Nairobi Stock Exchange.

  • 4. How do I buy/sell shares?

    Before you buy any share of any listed company in the NSE, you will need to open a Central Depository and Settlement Corporation (CDS) account ( click here ). The CDS account is where all your shares will be held electronically.

    Once the account is opened you will need to deposit money in our bank account after which you may give instructions, in person at our premises or by email.

  • 5. What is the minimum amount I have to invest?

    The minimum is 100 shares in any listed company. However, as per our company policy the minimum is Kshs 500,000.

  • 6. I own share certificates. What do I do with them?

    The share certificate is proof of share ownership issued by the company itself. Given that it is a physical item, it can be damaged, lost or destroyed. We recommend that you deposit the share certificate with the CDS just like you would place your money at the bank.

  • 7. What is the process of depositing shares under certificates?

    • Visit us with the certificates you want to deposit.
    • Be sure you have already opened an account with us or are ready to do so (click here …)
    • You will be issued with and assisted to complete a Security Deposit Form (CDS 2).
    • Sign your form with the signature used when buying the shares.
    • Return the form to us together with the certificates you have included on the form to be deposited.
    • You will be given a duplicate copy of the completed and signed form, after we have countersigned as evidence of your deposit.
    • We will forward the form and the certificate to the company's share registrar for verification
    • When the registrar confirms the certificates as genuine, they will forward the verified forms to CDSC and the shares will be deposited in your account.
    • Once the shares are in your account you can trade in them.
  • 8. Who is a registrar?

    A registrar is the entity that carries out share transfers, transmission and consolidation of shares of on behalf of a company and attends to queries relating to non-receipt of dividends on shares of the company.

  • 9. When do I get a statement from CDS

    If you have had activity in your account, you will receive a statement from CDS at the end of that month.

    You can request for an interim statement of your account any time you wish. You will be charged a fee of Kshs.50 per interim statement.

    It is mandatory to fill in your address, code and town on the Account Opening Form (CDS 1) in order for you to receive your statements promptly.

    You view your statements on your mobile. To register, send the word Register to 22372 and you will receive instructions on how to register for the service. Each SMS costs Kshs.10.00

    You can also get your statements via the email that you registered at the point of opening your account. If you didn't submit an email address or require to change it, please get in touch with us .

  • 10. How soon can I invest?

    You may start trading immediately as soon as your account has been opened.