Nairobi bourse to embrace digital records
GOVERNMENT
By BiztechAfrica - July 25, 2012, 1:29 p.m.
By Semaj Itosno, Nairobi, Kenya
The Nairobi Securities Exchange (NSE) will soon discard use of physical records as the official proof of shares as it goes digital.
Consequently all investors at the NSE are required to convert all shares held in paper form to electronic accounts which will also be used for corporate actions.
The bourse and Kenya’s Central Depository and Settlement Corporation (CDSC) have proposed to start using electronic records from November 30 2012. CDSC says already 80.95% of the shares available for trading at the NSE are in electronic form.
Also known as dematerialization, the move to a fully electronic process started in 2004 after CDSC was formed. This allowed for the surrender of physical certificates with an electronic record of holdings through a process known as demobilization.
“From the dematerialization date, share certificates shall no longer be recognized as the prima facie evidence of ownership of shares and this will be replaced with the electronic record at the depository,” reads a joint statement from the CDSC and NSE.
Kenya Capital Markets Authority CEO Paul Muthaura speaks to Biztechafrica about the dematerialisation of the market.
MORE GOVERNMENT NEWS
DR Congo readies for world’s largest hydroelectric plant
The Democratic Republic of the Congo is preparing to build a hydroelectric plant that is expected to bring electricity to half of Africa. Read MoreBenin launches cyber security plan
Benin’s ICT Ministry is spearheading the launch of a national cyber security strategy and response centre. Read MoreICTs to be rolled out to Huambo schools
Angola’s Huambo province plans to accelerate the roll-out of ICT labs to schools across the province. Read MoreAngolan census pilot gets underway
Angolan Vice-President Manuel Domingos Vicente has launched the 15-day pilot census, ahead of the republic’s first national census in over 40 years. Read MoreBeing Pan-African symposium underway
Leading intellectuals from Africa and the African Diaspora are convening in Ethiopia for the African Union symposium “Being Pan-African.” Read MoreNCC: MNP is succeeding
Despite scepticism over MNP in a nation well used to owning multiple SIMs, Nigeria’s NCC says MNP is succeeding. Read MoreMalawi to establish National Data Centre
The Malawi government will this year establish a National Data Centre to rationalise data storage and data processing facilities in the country. Read MoreZambia commends Ghana for digital migration
Zambia’s Information and Broadcasting Services deputy minister Mwansa Kapeya has commended Ghana for the successful implementation of its digital migration programme. Read MoreMozambican President on visit to China
Mozambican President Armando Guebuza has arrived in Shanghai, on a working visit to China, to boost trade and cooperation between the two countries. Read MoreITU awards Rwanda for WSIS ICT4D action plan
The ITU has handed two awards to Rwanda for its efforts in implementing WSIS (World Summit on Information Society) in ICT for Development. Read MoreRELATED STORIES
FEATURED STORY
ICT opens doors for Kenyan slum dwellersA Nairobi based group is equipping high school girls from Nairobi's slums with ICT skills to help them participate meaningfully in building the economy.
BEST READ NEWS
IN DEPTH
Dollar-a-month broadband can change AfricaThe Microsoft-led 4Afrika TV white spaces project, taking broadband to rural people for as little as a dollar a month, is now expanding in Kenya and launching in Tanzania.