DiDUKUNG

Tuesday, August 2, 2016

How to Open a CDS Account

What is a CDS Account? 

CDS is an abbreviation for Central Depository System. A CDS account is issued by the Central Deposits and Settlements Corporation (CDSC) Ltd, a company that facilitates the holding of shares electronically thus eliminating the need for physical share certificates. The CDSC is a parastatal (state corporation) established under the Central Depository Act of 2000. You must have a CDS Account to buy and sell shares and other securities at the Nairobi Stock Exchange (NSE).

Requirements to Open a CDS Account

For Individuals

  • Complete and sign a securities account opening/maintenance form with your Central Deposit Agent (CDA). The form is called CDS 1. The CDA can be a Stockbroker, an Investment Bank or a Custodian Bank authorized by CDSC to open CDS accounts on behalf of investors.
  • Two recent passport size photographs
  • Original National ID or passport. 



For Companies

  • A CDS 1 form from your CDA as above for individuals.
  • Certificate of registration for companies of certificate of registration for other company types
  • ID Cards and two recent passport size photographs of all directors
Tips and Warnings

  • Once you open the account, your CDA will give you a CDS account number and a duplicate copy of the account opening form to retain for your records. 
  • To identify you, your CDA will also set up a secret question and answer. This information should be kept strictly confidential.


Source
Central Deposits and Settlement Corporation


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