Frequently Asked Questions
Below is a list of the frequently asked questions.You are welcome to use our online tools to conduct searches too!
Bonus issues are shares issued free of charge to shareholders. When a company accumulates a large fund from profits, much beyond its needs, the directors may decide to distribute a part of it among the shareholders in the form of bonus
If a company has excess earnings from which it decides to pay a dividend to common stock shareholders, the amount is declared along with a payable date. Usually, this is determined quarterly after a company finalizes its income statement.AGM Dates
Market share represents the percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period.
• Interest rates • Economic outlook. • Inflation. • Deflation. ... • Economic and political shocks • Changes in economic policy
A dividend is defined as a payment made by a corporation to its shareholders. Usually these payouts are made in cash (called “cash dividends”), but sometimes companies will also distribute stock dividends, whereby additional stock shares are distributed to shareholders. Stock dividends are also known as stock splits.
They have no more right than other customers to the services of the business they “own”. The company's actions are not their responsibility, and corporate assets cannot be used to satisfy their debts.There is a stronger case for asserting that a company is “owned” by its directors than there is for its shareholders.
You do not lose any financial assets once remitted to UFAA. Indeed, UFAA on behalf of the Government exercise responsibility as holder of assets in the public interest and guarantee you an indefinite right of reunification. Beneficiary should constantly check for the status of deceased relatives
The Unclaimed Financial Assets Authority (UFAA) is an Authority created under the Unclaimed Financial Assets Act, No. 40 of 2011 to administer unclaimed financial assets. The primary mandate of the Authority is to receive unclaimed financial assets from the holders of such assets, safeguard and re-unite the assets with their rightful owners.
This is a written agreement authorizing an individual to act for another.
It is a book entry security which has been prescribed by CDSC under section 24 of the Central Depositories Act, whereby the underlying physical certificate is no longer recognized as evidence of ownership under the Companies Act Cap 486 on or after the dematerialization date.
Dematerialization is the next step after immobilization. On the dematerialization date, the underlying physical certificates will cease to be evidence of ownership under the Company listed at the Nairobi Securities Exchange (NSE). Evidence of ownership will be in the electronic holdings maintained in the Central Depository System (CDS) operated by CDSC.
CDSC shall send you monthly statements if your account is active otherwise; you will receive your statement only once a year. However, if you would like to view/download/print your statements, you can visit the CDSC website at www.cdsckenya.com. You can also subscribe to the CDSC mobile services where you will receive an alert every time there is an activity in your accounts such as sale or purchase of shares for a minimum fee of Kshs.10.00 per alert. To subscribe, send the word ‘register’ to 22372 and follow the instructions
Dividend inquiries can be made at the Company’s shares registrar firm, Image Registrars Limited,5th Floor Barclays Plaza, Loita Street, Nairobi P.O. Box 9287, 00100 GPO, Nairobi Tel: +254 709 170 000 / 724 699 667 / 735 565 666email: firstname.lastname@example.org . Kindly liaise with the Registrar who will advise you on your dividend status. If there’s an outstanding dividend, the same shall be paid to you via Cheque, M-Pesa or EFT.
Dividends up to an amount of Kshs.70, 000.00 can be paid via M-PESA upon registration by the shareholder. Additionally, the dividend Payments through M-PESA will be valid for two (2) weeks from the payment date. Any payment which will not have gone through will be returned and a cheque will be issued. Kindly visit the Company Registrars office and fill out an Opt-In form so that all future dividends can be paid to you via M-PESA. You can also visit the Company offices (Shares department) and fill out the forms. We shall require a copy of your ID or Passport.
An annual general meeting (AGM) is a mandatory yearly gathering of a company's interested shareholders. At the AGM, the directors of the company present an annual report, which contains information for shareholders about its performance and strategy.
An extraordinary general meeting(EGM) is a meetingother than the annual general meeting between a company's shareholders, executives and any other members. An EGMis usually called on short notice and deals with an urgent matter.
• The request for replacement must be made in writing • An Indemnity form for lost warrants will be issued to the shareholder for completion in the presence of the presence of a Commissioner for Oaths / Notary Public and returned to the Company together with the shareholder’s passport • Duplicate dividend warrant will thereafter be issued and paid in accordance with the shareholder’s instructions.
Transfer of shares This basically means the transfer of shares from the Estate of a deceased shareholder to a beneficiary. The following would be required: • A certified copy of the Confirmation of Grant of Probate / Grant of Letters of Administration. If a Grant has been issued outside Kenya, it must further undergo the resealing process by the High Court of Kenya, at the shareholders cost, in accordance with the Laws of Succession in Kenya. • Share Transfer form duly signed by both the Executor / Administrator of the Estate of the deceased and transferee / beneficiary, in the presence of a Commissioner for Oaths / Notary Public • A certified copy of the Death Certificate • Original Share Certificates • A certified copy of the Executor’s / Administrator’s passport • A certified copy of the beneficiary’s passport (if not the same as the executor/administrator)
The Capital Markets Authority (CMA) is a government organization that regulates the Capital Markets of Kenya. Its role includes overseeing the operations of the Nairobi Securities Exchange, the Central Depository and Settlement Corporation, and licensing of stockbrokers.
Your shares remain intact. When the suspension of the counter is lifted, you can then trade in the shares
The Nairobi Securities Exchange (NSE) is where shares (Equities) and bonds (Fixed Income Securities) are traded. The NSE is open Monday to Friday from 8.00 am to 5.00 pm.Trading activities start at 9.00 am to 3.00 pm. The NSE is closed on public holidays.
A Bondholder • A bondholder is only a lender to a company • Expects a profit in form of an interest at a specific agreed date in future • Does not vote or participate in the management of the company • Invests to earn a reasonable return at a low risk • A watchdog of the borrowers activities A Shareholder • A shareholder is a lender and an owner • Expects a profit in form of a dividend, gain in share price, bonuses and cheaper shares (right issues) • Attends Annual General Meetings, gives personal opinions about the company and votes thereby participating in the running of the company • Invests expecting the highest return possible • Accept risk as part of any business • A watchdog of the management and company’s activities • An influencer of the company’s performance
A share is a piece of ownership of a company or enterprise. When you buy a share, you become an investor and thereby an owner of a piece of the company’s profit or losses.
Yes. In times of need or emergencies, an investor can sell his or her bond easily and quickly in the market. The interest on a bond grows on a daily basis and so a bond has new value and price every day. An investor can therefore buy or sell a bond on any day of his or her choice. There are no penalties for selling a bond before the maturity date.
A bond is a loan between a borrower and a lender. The borrower promises to pay the lender some interest quarterly or semi-annually at some date in the future. The borrower also promised to repay the initial money invested by the lender. The lender lends and expects to make a profit. The profit from a bond is gained in the form of an interest. At the moment some bonds in the market have an interest rate of 14%, 12%, 10%,8% depending on the type of bond it is, and when it was issued.
The date on which a shareholder must own the stock in order to receive a dividend payment.
The process of authentication of the existing share certificate by the registrar.
This is an investment professional who handles orders to buy and or sell shares of stock on behalf of an individual and/or corporate investor.
Once your share certificate is lost, you are required to immediately advise us of the loss. Our office will then place a stop on the noted certificate. For the replacement of the certificate, you will be required to provide the following; 1. A duly completed Lost Certificate Indemnity Form witnessed by the Commissioner of Oaths as per provisions of the Kenya Law. (issued by Image Registrars) 2. An abstract report issued by the Kenya Police in respect to the reported lost certificate. 3. The shareholder’s certified proof of identity (National Identity Card or Passport). 4. Affidavit – signed by lawyer- commissioner for oaths 5. Certified copy of KRA PIN 6. . Write a formal letter requesting for issue of a duplicate Share Certificate Completed, original forms (not facsimile) should be mailed to: IMAGE Registrars Services Limited, P.O. Box 9287-00100, Nairobi, Kenya. 5th Floor, Barclays Plaza, Loita Street, once we receive the forms in good order the indemnity will be verified and mailed to you.
It is an electronic account that holds shares only.
When you pay the loan, the lender completes the necessary Form (CDS6) instructing CDSC to remove the pledge; this takes Within 24 hours of the documents reaching CDSC?
By completing and signing a securities account opening/maintenance form with a stock broker of your choice. The form is titled CDS 1.
A registrar is the entity that carries out share transfers, transmission and consolidation of shares of on behalf of a company and attends to queries relating to non-receipt of dividends on shares of the company.
CDA means Central Depository Agent. It is either a Stockbroker, an Investment Bank or a Custodian Bank who has been authorized by CDSC to open accounts in CDS on behalf of investors.
1. Copy of the deposit form (CDS 2) 2. A monthly statement from CDSC if you have a trade that month. 3. You get a statement upon request. 4. The statements are issued directly to your email or postal address as indicated on the form.
By completing and signing the Securities Transfer Form, (CDS 4(A) + CDS 4(B) supplied to you by your stockbroker. The form must be signed also by your current CDA (CDS 4A) and your new CDA (CDS 4B).
Yes. You and the lender will complete a Pledge Form (CDS 5) and deliver it to your CDA,(CDA’s are all licensed Members of the Nairobi Stock Exchange and Custodian banks are CDAs.). The lender will forward the forms to CDSC through your CDA. CDSC thus marks the shares as pledged to the lender and confirms this to the lender and yourself. When shares are pledged you cannot sell them.
Yes, you can open accounts through as many stockbrokers as you want. However, when an account is opened using one stockbroker, only that stockbroker can transact on that account
CDS stands for the Central Depository System. This is a computer system operated by The Central Depository and Settlement Corporation (CDSC) that facilitates holdings of shares in electronic accounts, opened by shareholders and manages the process of transferring shares traded at the Stock Exchange.
The Nairobi securities exchange NSE runs a daily mailing facility by email of all trading activities and related information. This information can be accessed in the website www.nse.co.ke or you could phone the NSE and request to be added to their mailing lis
Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings which are not given out in the form of dividends, but are converted into free shares.
OTC securities are unlisted at NSE .Trading is done directly between two parties, without the supervision of an exchange
The placement of certificates or other documents of title evidencing ownership of financial instruments in a central securities depository to reduce the movement of physical securities in the marketplace and to facilitate book entry transfers
This is because the CDSC accounts are originally opened by the CDSC Agents who are the responsible authority in respect to maintenance of the static data
No. If you want to purchase shares you should contact any of the stockbrokers registered by Nairobi Securities Exchange.
When accompany decides to issue new shares in order to raise capital and gives the existing shareholders the fist privilege to purchase such shares, the company is said to be raising capital through a Rights Issue. Current shareholders are given the first priority in buying the new shares at a discounted price.
If you have a CDSC Account ,please visit your stock broker to update the details (Cheque ,RTGS or EFT) then these details will be forwarded to us for use during next dividend processing. If you hold shares on a certificate you can fill the form above, sign then visit our offices.For companies that use Mobile (MPESA,Airtel Money) as a mode of payment you must fill an opt-in form downloadable on Shareholders Services menu above then email us at email@example.com
To sell your shares, please visit the stock broker to place sell instruction.If you cant remember your CDSC Account you can use the menu link above to retrieve it.A list of all the stock brokers is also available on the menus.
After the collapse, all accounts at Discount Securities were transferred to Kingdom Securities.Please visit their offices at Co-operative Bank House,5th Floor (Bomb blast place) and you will be assisted
Please contact your stockbroker or agent through whom you made your application as allotment letters, share certificates and refund cheques (if any), were forwarded.
If in your application form you provided a bank account, please check to see if your dividends were posted to your account through Electronic Funds Transfer (EFT). Otherwise, please visit your stockbroker or agent through whom you made your application, as all refund cheques were forwarded to the authorized selling agents
Please visit the stockbroker or agent through whom you made your application for your shares. They will be in a position to assist you in tracing the whereabouts of your shares.