CSCS Says Dematerialisation of Share Certificates down by 50%

Central Security Clearing System (CSCS), the Clearing House of the Nigerian Stock market has reported that the dematerialisation of share certificates declined by 50.04% in 2012 compared to the number achieved in the 2011.

Mr. Kyari Bukar, managing director, CSCS, said the shares certificates dematerialised within the reviewed period decreased by 265,254 or 50.04% to 264,886 against 530,140 share certificates recorded in year 2011.

The company dematerialised 14,164,522 share certificates between 1997 to 2012 it started operations and the firm provided the platform for a full dematerialised securities market since 1997.

During the year, 21 shareholders requested for share certificates as against 31 shareholders in the previous year representing a drop of 32.26 per cent.

Bukar also explained that in the year 2012 about 168 shareholders used their shareholding in CSCS depository as collateral to obtain loans in year 2012, showing to a decrease of 48% in comparison with 2011 figures of 324 shareholders.

Explaining further, he said “there are now over 4.9 million shareholders in the CSCS system going by statistics gathered at the end of 2012 in comparison with over 4.88 million shareholders recorded in 2011.” The figure represents an increase of 1.47 per cent in the number of shareholders who maintain accounts with the CSD.

It should be recalled that at the second quarter of last year the board of Central Securities CSCS, approved the implementation of a new business strategy that would position it as a highly innovative and globally respected Central Securities Depository (CSD).

The major target of the company is to become a leading Central Securities Depository in Africa  while its mission is to create value by providing securities depository, clearing, settlement and other services driven by innovative technology.

The depository company in a statement noted that to realize the vision, mission and core values of the company, it has become imperative to strengthen its new product development and customer interfacing units and personnel to meet current company and marketplace realities.