How safe is CDS?
CDSC has employed staff of high integrity and keep very high levels of confidentiality. Where appropriate and available the Company has taken insurance.
How long does it take to complete a trade in CDS?
A maximum of 5 days. Your stockbroker can arrange for a shorter period if you want.
Do I lose my dividends and bonuses?
No, you will still get your entitlements without any change. Bonus shares are credited directly into your CDS account.
Will it cost me more to use CDS?
No. There is absolutely no increase in cost for the CDS accountholders.
How can I move from one Stockbroker to another?
By completing and signing the Securities Transfer Form, (CDS 4(A) + CDS 4(B) supplied to you by your stockbroker. The form must be signed also by your current CDA (CDS 4A) and your new CDA (CDS 4B)
Can I use a different broker from the one I have been using?
Yes, you can open accounts through as many stockbrokers as you want. However, when an account is opened suing one stockbroker, only that stockbroker can transact on that account
When do I get a statement from CDS
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.
When do I get a statement from CDS?
Will I receive dividend on the pledged securities?
The pledgor will continue to receive dividend on the pledged securities. The pledgee will get the benefits only if the pledge is invoked and on record date the shares are in the pledgee's account.
Will I be able to change the securities offered in a pledge?
Yes. If the pledgee [lender] agrees, you will be able to change the securities offered in a pledge.
How does the pledge get removed from my account?
When you pay the loan, the lender completes the necessary Form (CDS6) instructing CDSC to remove the pledge.
How long does it take to process the Pledge?
Within 24 hours of the documents reaching CDSC.
Can I use my shares as collateral/security for a loan?
Yes. You and the lender will complete a Pledge Form (CDS 5) and deliver it to your CDA. The lender will forward the forms to CDSC through your CDA. CDSC thus marks the shares as pledged to the lender and confirms this to the lender and yourself. When shares are pledged you cannot sell them.
What if I want my certificate back?
You complete a withdrawal form (CDS 3). Kshs.500 is chargeable for every certificate you may wish to withdraw. However, if you wish to trade again, you will need to re-submit the certificate for immobilization.
What do I do to change if I need to change my address?
You will complete and submit Securities Account Maintenance Form (CDS 1) to your CDA with the new address or indeed any other changed details.
What do I get to prove I have deposited shares into my CDS A/c?
You get the duplicate copy of the deposit form (CDS 2)
You get a monthly statement from CDSC 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 is the process of depositing shares?
Sign your form with the signature used when buying the shares.
Return the form to the CDA 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 the CDA has countersigned as evidence of your deposit.
The CDA will forward the form and the certificate to CDSC
CDSC will forward the certificates and forms to the company’s shares registrar for verification.
When the registrar confirms the certificates as genuine, the shares will be deposited in your account.
Once the shares are in your account you can trade in them.
Will I be able to operate joint accounts?
Will I be restricted to having an account with only one CDA?
No. There are no restrictions on the number of CDAs you can open accounts with.
What do I need to know about the CDS?
What Is the role of capital markets in an economy?
- Provides an important alternative source of long-term finance for long-term productive investments. This helps in diffusing stresses on the banking system by matching long-term investments with long-term capital.Read More
- Provides equity capital and infrastructure development capital that has strong socio-economic benefits - roads, water and sewer systems, housing, energy, telecommunications, public transport, etc. - ideal for financing through capital markets via long dated bonds and asset backed securities.
- Provides avenues for investment opportunities that encourage a thrift culture critical in increasing domestic savings and investment ratios that are essential for rapid industrialization. The Savings and investment ratios are too low, below 10% of GDP.
- Encourages broader ownership of productive assets by small savers to enable them benefit from Kenya’s economic growth and wealth distribution. Equitable distribution of wealth is a key indicator of poverty reduction.
- Promotes public-private sector partnerships to encourage participation of private sector in productive investments. Pursuit of economic efficiency shifting driving force of economic development from public to private sector to enhance economic productivity has become inevitable as resources continue to diminish.
- Assists the Government to close resource gap, and complement its effort in financing essential socio-economic development, through raising long-term project based capital.
- Improves the efficiency of capital allocation through competitive pricing mechanism for better utilization of scarce resources for increased economic growth.
- Provides a gateway to Kenya for global and foreign portfolio investors, which is critical in supplementing the low domestic saving ratio.
What if I have any complaints about CDSC’s services?
Capital Market Concepts Explained
Key Stock Market Myths
What are the benefits of Investing within the Capital Mark.
How does the stock market work?