CSCS set to implement e-bonus

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October 16, 2006/punch




The Central Securities and Clearing Systems Limited has said that it is ready to implement the electronic bonus and public offerings in the capital market.

The CSCS is the clearing house for the Nigerian Stock Exchange.

It functions as a central depositor for all share certificates of quoted securities, including government stocks.

It also provides custodian services for share certificates of local and foreign investors and acts as a sub-registry for all quoted securities on the exchange, in conjunction with registrars of the quoted companies.

In a bid to make the market more competitive, regulatory bodies plan to introduce electronic bonus shares that will allow the direct credit of investors’ accounts with the CSCS, instead of issuing share certificates.

They also plan to introduce electronic public offerings. While the regulators were still working out the modalities, the CSCS said its facilities were already configured to implement the new idea.

The Managing Director/Chief Executive Officer, CSCS, Mr. Onyewuchi Asinobi, told our correspondent in an interview on Friday, “We are anxiously waiting for the implementation of e-bonus and the introduction of e-IPO (electronic Initial Public Offering) and e-PO (electronic Public Offering).”

He said that the CSCS had cleared and settled transactions worth N1.4tn since its inception in 1997.

He said that with the diversification into data storage and retrieval business, the CSCS had been positioned to turn out a better performance.

Shareholders of the company on Wednesday, received a dividend of N137m for the year ended December 31, 2005, following improved performance posted for the year.

The company ended the year with a turnover of N1.264bn, up from N939m in 2004, while profit after tax rose from N207m to N234m.

According to the Chairman of the company, Dr. Hayford Alile, the company had no intention of paying dividend, but added that the impressive results made the board recommend a dividend of N137.5m for the shareholders.

He said that there were indications that the CSCS had surpassed its forecast for the current year.

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