CSC Security - Central Securities Clearing System (CSCS)
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| CSC Security |
CSC Security / Center for Securities Clearing System (CSC) is based on the concept that provides a single central depository, clearing (electronic record / book on the transfer of shares from the seller to the buyer) and payment (payment for securities purchased) for all transactions on the stock market.
1989 Conference of the International Federation of Stock Exchange Nigerian Stock Exchange is a member, which endorsed the recommendations of the group of 30, the private sector, which studies the global financial markets, gave birth to the formation of PSCs.
The stock market is a very important tool for economic development of any nation. As the existing market for the mobilization of long-term funds and mediation between the different productive sectors of the economy, the oil that lubricates the wheels of the catalytic nation. The market, however, can not serve this role effectively if the Stock Exchange, becoming the center of an effective, dynamic and attractive to investors.
CSC Security
Number of systemic distortions and bottlenecks still characterized financial markets in Nigeria, which is derived from the pre-SAP era rules that prevent the effective mobilization and allocation of financial resources through the market. For example, there are obvious difficulties involved in the transfer of shares and production of new certificates for securities trading that takes months, and in some cases, years to conclude. Moreover, the processing operations carried out on the stock exchange floor of a Nigerian (NSE) is almost free, thus creating a delay in delivery. In particular, the Commission on the Securities and Exchange Commission (SEC) Decree 1988 and the company and related matters Decree of 1990 provided that the price of new issues is the exclusive prerogative of the SEC. The consequence of this is that potential users of the capital markets got discouraged by the fact that the government agency, not the power of the market, dictating prices for government securities, and / or state-owned companies.Maybe it's the realization of this anomaly, which inform the government reform measures undertaken in 1991 to achieve further deregulation and realistic share price, as well as to address the challenges for the private sector and foreign participation in the market. Here are some concrete steps to reform the market.
Disassembly 1. The Government functions SEC does its price in the primary market in January 1993.
2. Cancellation of Exchange Control Act 1962 and the Nigerian Enterprises Promotion Decree of 1989, in 1995, both the legislation that replaced the Nigerian investment promotion commission decree, and foreign currency (Monitoring and Miscellaneous Provisions) Decree 1995 This opened the market to foreign participation.
The most innovative developments in the capital markets is a central clearing system of securities. It was established as a subsidiary of the Nigerian Stock Exchange in order to eliminate barriers inherent in the previously mentioned and started its activities in 1997 for this purpose, CSCS is the realization of the Stock Exchange of Computerized Management System (SEM), which emphasizes the immobilization of stock certificates in the repository, and removing barriers between the Registrar and the representative of the company to issue new certificates for investors.
All securities are listed on the Nigerian Stock Exchange and the list of their members are under arrest CSCS Limited. This option allows all securities transactions must be processed in the NSE and conclude within five days (5) work (ie T + 5) in the form of an electronic book entry. In carrying out this important, CSCS Limited constantly update the list of members of all listed companies and issue a report on their holdings. Registration update available to the applicant company, from time to time.
Sixtus was Finance and Business Intelligence Consultants with a blog for the care of entrepreneurs with Midas Touch.
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