CDS ACCOUNT FAQs

WHAT IS CDS? WHAT DO I NEED TO KNOW ABOUT THE CDS?

CDS stands for Central Depository System. A CDS is an electronic shares account through which shares are traded on the Nairobi Stock Exchange.

HOW DO I OPEN A CDS ACCOUNT?

By completing and signing a CDS account opening form with a CDA, providing two passport size photographs and your national ID.

WHO 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 investors

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. Please keep your CDS account number confidential.

MUST I OPEN A CDS ACCOUNT?

Yes, if you intend to trade in shares.

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 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.

WHAT DO I GET TO PROVE I HAVE DEPOSITED SECURITIES?

• A duplicate copy of the deposit form
• A monthly statement if you have a deposit or a trade that month.
• 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 account opening 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.

WHO REGULATES CDSC?

The Capital Markets Authority

HOW SAFE IS CDS?

CDSC has taken the following measures to ensure the security of your shares:

• The company has back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises.
• CDSC has taken precautions to ensure its system is not interfered with.
• CDSC has employed staff of high integrity and keep very high levels of confidentiality.
• Where appropriate and available the company has taken insurance.
  

SAFARICOM IPO APPLICATION FORM FAQS

HOW DO I APPLY

You must have a CDS account. If you do not have you can open with us at any of our branches and service centers
Thereafter, you can fill out the Application Form.

WHERE CAN I APPLY FOR THE SAFARICOM IPO SHARES

You can apply for the Safaricom IPO shares at any of the NIC Bank Branches at NIC House- Masaba Rd, Harambee Avenue, The Junction, The Mall, and City Centre in Nairobi, Nkrumah Rd, Harbour House and Nyali in Mombasa and Vickers House in Nakuru.
Additionally, you can apply at NIC Capital Branches at the Hilton and Kimathi House.

ONCE I HAVE MY CDS ACCOUNT NUMBER, DO I HAVE TO INSERT THE LEADING ZEROS

No, you need not fill out the leading zeroes on the application form.

WHAT ARE THE APPLICATION AMOUNTS

The minimum application amount for individuals is 2,000 Shares or Kshs. 10,000. Thereafter, one may increase the application amount in multiples of 100. For qualified institutional investors, the minimum amount is 100,000 shares. Thereafter one may increase the application amount in multiples of 10,000.

WHAT ARE THE COSTS:

The application fee is the number of shares applied for by Kshs 5/. In addition, you shall have to submit Ksh 30, being a one time fee charged by CDSC for mailing statements.

HOW MANY PEOPLE CAN APPLY AS JOINT APPLICANTS

Only 2 people can apply as joint. None of these two can be a corporate entity.

WHAT DO I NEED TO APPLY AS A CORPORATE

To apply as a corporate, 2 directors of the company or a director and the company secretary must sign the form. In addition, the company seal must be affixed.

WHO IS A QUALIFIED INSTITUTIONAL INVESTOR (QII)

The following entities are QIIs, Unit trusts, Investment Banks, Pension Funds, Life Insurance Companies.