For investors desirous of trading shares on the Nigerian Stock Exchange, one key requirement for ensuring seamless transactions is the possession of a CSCS number.
The Central Securities Clearing System (CSCS) Plc was incorporated on July 29, 1992 as a Financial Market Infrastructure (FMI) for the Nigerian Capital Market. It was commissioned in April, 1997 and commenced operations in April 14, 1997.
Its core purposes include:
i. The delivery (transfer of securities from seller to buyer)
ii. The settlement (payment of bought shares) of securities transacted on the approved Nigerian Exchanges.
The CSCS facilitates these two core functions via an electronic book-entry form and this helps to bring about a significant reduction in how long it takes for shares transactions to take place.
This process is facilitated through the issuance of unique CSCS ID numbers to investors and according to details on its websites, the CSCS has issued over 4 million Clearing House Numbers to Stakeholders who now buy and sell shares on the floor of the NSE directly connected to CSCS system.
For first time investors who do not have a CSCS number, getting one is quite easy and straightforward.
Register for an account with an accredited Stockbroking firm and your CSCS number would also be processed along with it. This usually is completed within a short period of time.
Do you wish to register for your CSCS number today? Please fill out the form for a New Account with Dominion Trust Limited