Posted by Chris Ugwu
The Central Securities Clearing System (CSCS) has said that full dematerialisation was realised in 2016 with a total of 188 out of 189 registers dematerialised, representing 99.5 per cent of the total registers in the capital market.
Dematerialisation is the process through which an investor’s physical share certificate gets converted to electronic format that is maintained in an account with the depository participant.
In order to free shareholders from the shortcomings arising from the physical share certificates and fasten the receipt of dividends, bonus issues and notice of meetings on time, the Nigerian Stock Exchange (NSE) decided to dematerialise share certificates and neutralise them into electronic documents.
CSCS, in a document obtained by the New Telegraph, said that the balance of 0.5 per cent could be achieved through sustained and moral suasion to get the remaining issuer and its registrars to co-operate in getting registers of companies fully dematerialised.
Interim Chief Executive Officer, CSCS, Mr. Bola Adeeko, said that the company was committed to the building of an integrated market infrastructure, strong and sustainable capital market.
Adeeko said that the company would continue to enhance integration with other capital markets for growth and development.
He stated that CSCS would continue to invest in its people, processes and infrastructure to deliver optimum services and reward to all stakeholders and shareholders.
The CSCS boss noted that the total volume of securities held in its depository decreased by 1.6 per cent from 979.7 billion units in 2015 to 964.0 billion units in 2016.
He added that the value of securities decreased by 50.95 per cent from N20.197 billion in 2015 to N9.906 billion in 2016.
“The assets comprise of NSE Equities, Debt instruments and NASD admitted securities. The decline of 50.95 per cent in the value of assets under custody was due to the withdrawal of Federal Government of Nigeria’s debt securities (bonds) from CSCS to the Central Bank of Nigeria (CBN) after the introduction of 54 (Scripless Securities Settlement System),” he said.
CSCS Board Chairman, Mr. Oscar Onyema, said that the company would diversify its income streams to boost profitability and dividend accruable to the shareholders.
He noted that the company had registered the Insurance Repository Nigeria Limited (IRNL) as a going concern, to enhance the record-keeping of insurance data and policies to increase income streams.
Onyema added that the company would launch the Pension Contribution Management System (PCMS) before the end of the third quarter 2017 to manage employees’ pension contribution.
“The beauty of the PCMS is the ease of its use and its integrated platforms, which include a mobile app for smart phone users and an activated dollar code feature that enable our customers stay abreast of their pension contribution on the go,” Onyema said.
Onyema said that the company would continue to work hard to sustain its promise of impressive return on investments through the years.
The company, during the period under review, posted gross earnings of N6.17 billion against N7.6 billion in the previous year. Profit before tax stood at N3.72 billion compared with N5.02 billion in 2015.
Total assets rose to N27.07 billion in contrast with N25.40 billion recorded in 2015.