According to various media reports, the Securities and exchange has announced that effective from January 4, 2016, implementation of the Direct Cash Settlement procedure will commence.
According to Nigeria CommunicationsWeek, the Direct Cash Settlement (DCS) is a process in which cash proceeds from trades executed on the stock exchange by brokers is remitted directly into the investors’ bank account.
The DCS is aimed at improving transparency in the exchange, ensuring investor confidence, reducing infractions in the market as well as improving trading velocity.
The report further reveals that 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, and other dealing firms have been directed to send relevant information to NIBSS not later than Wednesday, December 30, 2015 to enable firms log-on to the NIBS portal for validation of BVNs.
Furthermore, all investors are expected to complete a Direct Cash Settlement form with their stockbroking firms.
Forms can also be downloaded from the websites of the SEC, NSE, CSCS, ASHON as well as individual stockbroking firms.