TO: ALL GENERAL INVESTING PUBLIC AND CAPITAL MARKET OPERATORS
CIRCULAR ON THE COMMENCEMENT OF DIRECT CASH SETTLEMENT (DCS)
This is to inform the general public that effective from January 4, 2016, the implementation of Direct Cash Settlement will commence.
The Direct Cash Settlement (DCS) is a process where cash proceeds from trades executed by Brokers on the Exchange settles directly into investors’ bank account. DCS is aimed at improving transparency, entrenching investor confidence, reducing market infractions and improving trading velocity.
Based on an agreement reached with the Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS) PLC, Association of Stockbroking Houses of Nigeria (ASHON) and Nigeria Inter-Bank Settlement System (NIBSS) Plc, Dealing Firms are hereby directed to send relevant information to NIBSS not later than Wednesday, December 30, 2015 to enable the Firms log-on to NIBSS portal for validation of Bank Verification Numbers (BVN).
All investors are expected to complete a Direct Cash Settlement form with their Stockbroking Firms. Forms could also be downloaded from the website of SEC, NSE, CSCS, ASHON and individual Stockbroking Firms and forwarded to investors’ respective Stockbroking Firms after completion.
December 23, 2015