An encounter with the new and improved CSCS Online Service


Wednesday, January 23, 2013 / Alero Awoyemi, Proshare


Depository account is now a must for every participant in the stock market. It offers you a safe, convenient and cost-effective way to keep track of your investment in shares and other instruments without the hassle of handling physical documents but it was not that easy few years ago. We would like to share one of our investors experience in the process of renewing his CSCS Account.

The old and traditional way, systems are run in the Nigerian Capital Market and Central Securities Clearing System Plc have discouraged me for so long from investing in the Nigerian Capital Market since 2008. 

Interestingly during the market boom when even the trader in the market was interested in buying shares from the banks who came to the market with Public Offers and enticing road shows, I bought a couple of shares from a stockbroker who had a marketer who could force out water from the rocks.

Not having a good experience with joining the long queues at the CSCS office, I decided to dump the idea and interest in buying shares and always wondered when would our systems be automated and we can have access to our accounts online without the interference of the stockbroker.

In recent times, I have received a couple of emails requesting to renew my CSCS online account and the next reaction is to press the delete button. Following the insightful analysis provided by Proshare, I decided to pay the sum of N2,500 to renew the account. I was still every sceptical about the whole process as I tried to log in and it failed. I concluded, “the system is still the same old traditional ways”. Eleven days later I decided to send a mail to the general email account advertised and surprisingly got a response from a gentleman(name withheld) saying that my account has be reactivated and sent me my details.

The game indeed has shifted and the market is looking up. Kudos to the new Management of the CSCS.

About The Central Securities Clearing System (CSCS): 


The Central Securities Clearing System (CSCS) was incorporated on July 29, 1992 as a subsidiary of The Nigerian Stock Exchange.

It was commissioned on April, 1997 and commenced operations on April 14, 1997. It is a limited liability company which was incorporated by the Corporate Affairs Commission. It was licensed by the Securities and Exchange Commission as an Agent for Central Depository, Clearing and Settlement of transactions in the stock market. It operates a computerized depository, clearing settlement and delivery system for transactions in shares listed on The Nigerian Stock Exchange. CSCS facilitates the delivery (transfer of shares from seller to buyer) and settlement (payment of bought shares) of securities transacted on the floors of The Nigerian Stock Exchange.  It enables stocks to be processed in an electronic book-entry form thereby substantially reducing the period it takes a transaction to commence and end. 



·    Central depository for share certificates of companies quoted on The Nigerian Stock Exchange.

·          Sub-registry for all quoted securities (in conjunction with registrars of quoted companies)

·          Issuer of central securities identification numbers to shareholders; and

·          Custodian (in conjunction with custodian member(s) for local and foreign instruments.

Delivery And Settlement Process Prior To CSCS 


·          In most cases, 3 months - 12 months to receive share certificates

·          Cancellation and frequent issuance and re-issuance of certificates when sales occur.

·          Constant signature verification

·          Capital gains not exploited

·          Some Dealing members sold what they did not have

·          Numerous complaints on failed transactions

·          Loss of certificates

·         Risk was very high - undue delay, manually operated, manipulations due to long transaction cycle, minimal transparency, therefore generally lack of trust in the system

·         These problems were worldwide and needed solution, hence the need for a depository (CSCS PLC)


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