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Glossary of terms

CDA - Central Depository Agent.These are agents appointed by CDSC to carry out CDSC related functions. 

CDS Account - Central Depository Account

CDSC - Central Depository & Settlement Corporation

CMA - Capital Markets Authority

Custodian Bank -An authorised depository licensed by the CMA which has been appointed a CDA.

Dematerialisation - This is whereby the underlying physical certificate is no longer considered prima facie evidence of ownership under the Companies Act

Entitlement Date - The date fixed by an Issuer for the purposes of determining entitlements, dividends or other distributions.

Freezing/unfreezing of shares - It is the tagging/untagging of shares such that no transaction can take place on the shares

Fund - The Guarantee Fund established by CDSC.

Immobilisation - Is the process whereby the underlying physical certificate has been deposited with and is held by CDSC

Issuer - The Issuer or its agent, including its Registrar.It is the body that issued the security.

Market - Market means the official market of the Nairobi Securities Exchange.

Net Settlement Obligation - The sum of the total debit amounts netted off against the sum of the total credit amounts for the relevant trading day.

NSE - Nairobi Securities Exchange

Settlement Bank - The Settlement Bank , which provides services to clear funds between CDAs.

Settlement Date - This is the date when shares become balance free and ready for transaction.

Securities Lending and Borrowing - Is the temporary transfer of shares from one party, the lender, to the borrower at an agreed lending/borrowing fee with a formal agreement to return the securities in future either on demand or at a pre-agreed date. 

Securities Lending and Borrowing (SLB) Agent - This is an institution appointed by CDSC to facilitate lending and borrowing requests on behalf of investors. 

Statement of Account - A statement generated by CDSC showing transactions effected and balance of securities.

Stockbroker - A Member Company of the Securities Exchange and a Central Depository Agent

T - The day on which a trade took place on the Securities Exchange


Last modified on Friday, 22 January 2021 07:00