What is a CDS account?

CDSC stands for Central Depository and Settlement Corporation. Investors’ securities are stored electronically at CDSC. This eliminated the use of certificates in trading at the Nairobi Stock Exchange.

How can I sell my shares in certificate form?

Certificates need to be immobilized into a CDS account in order to be able to trade the shares. This involves filling a CDS 2 form and submitting it together with the certificate to Dyer & Blair Investment Bank Ltd for forwarding to the registrar and CDSC for crediting to your CDS account.

How does one open a CDS account with Dyer & Blair Investment Bank?

By completing and signing the account opening form, and terms and conditions. The following are also required:
For individual or joint account:

    ID / Passport copy
    2 color passport size photos
    Evidence of physical address (utility bill, lease or tenancy agreement)
    Evidence of income (bank statement or pay slip)

For a corporation:

    Signed and sealed CDS 1
    2 colour passport sized photos, ID copies, and utility bills of each director and signatory if any
    Board resolution on approval of account opening including account signatories
    Memorandum and articles of association
    Certificate of incorporation
    Company PIN certificate
    Evidence of physical residence (utility bill, lease or tenancy agreement)
    Evidence of income of the business (bank statement)

The originals of the above documents need to be sighted by Dyer & Blair Investment Bank staff for certification or certified by a notary public.

Why do I need to provide all these documents?

This is as a result of a new regulation from the Capital Markets Authority that requires stock brokers to carry out a due diligence on their clients. The process enables us to identify and ascertain relevant information pertinent to doing business with you. A key benefit of this process is that it will enable us to prevent identity theft, fraud and thereby protect your investment with us

How long does it take to open a CDS account?

CDSC account opening process should be done ideally within 36 hours if the account opening form is in order and all the KYC requirements are in place. However, this may not always be the case.

  • Where extra due diligence is done on a client in line with the KYC policies, the account opening process may extend beyond the 36 hours.
  • If the KYC documents and account opening forms are received at a Dyer & Blair Investment Bank Branch outside Nairobi, the CDSC accounts should be opened within 48 hours.
  • For Dyer & Blair Investment Bank branches within Nairobi, the CDSC account opening process should be done within 36 hours of delivery to the branch. In all cases, clients are alerted by the KYC team immediately their CDSC accounts are opened, to allow them to fund their accounts in readiness for a trade.

What is the minimum amount required to invest in the Nairobi Securities Exchange?

There is no minimum investment requirement. However, the minimum number of shares that can be sold or purchased is 100.