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
- 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.
- 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.