CSCS What you need to know

What is CSCS?


cscs stands for the Central Securities Clearing System. In conformity with international standards, and to remove"the dificulty associated with the transfer of shares and production of new certificates for traded securities" the Nigerian Stock Exchange, in 1992, incorporated the Central Securities Clearing System Limited as a susidiary. Five yeras later, in 1997, it was commissioned and started operations.





CSCS was established " to implement a computerised stock Exchange Management system (SEMS), which emphasises immobilisation of share certificates in a central depository and the elimination of the bottlenecks between registrars and company executives in issuing new certificates to investors".





HOW DOES IT OPERATE


cscs helps in the electronic transfer of shares from a buyer to a seller and vice versa.Thus,for it to performthis function, all listed securities on the Exchange must have their certificates deposited in CSCS before transaction on them can take place at the Exchange.Each deal on the Exchange can be captured and facilitiated by CSCS. In effect, registrars verify and record certificates of all stocks traded on the Exchange and then update the record each time a security is traded.To buy or sell any stock on the floor of the Stock Exchange, an investor must be registered with CSCS, thrugh her stockbroker.