NSE Holds Seminar on Direct Cash Settlement, Dematerialization

By Dipo Olowookere

Tuesday, September 12, 2017, has been fixed by the Nigerian Stock Exchange (NSE) for its programme tagged Investor Clinic.

The event is slated to take place in Lagos and it is themed ‘The Role of Dematerialization, Direct Cash Settlement and E-dividend in the development of the Nigerian Capital Market.’

This edition of the NSE Investor Clinic is designed to educate participants on the concept of dematerialization, direct cash settlement and e-dividend, as well as provide insights on how to leverage these opportunities when transacting in the Nigerian capital market.

The event will precisely hold at the Stock Exchange House, 2-4 Customs Street, Marina, Lagos and it holds from 10am to 1:30pm.

Some capital market experts have been pencilled down to speak at the clinic sponsored by ARM Pensions and Africa Prudential.

Dematerialisation is the process of converting physical shares into electronic format. An investor who wants to dematerialise his shares needs to open a demat account with Depository Participant. Investor surrenders his physical shares and in turn gets electronic shares in his demat account.

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.

From January 4, 2016, the Securities and Exchange Commission (SEC) commenced the implementation of Direct Cash Settlement.

Business Post reports that e-dividend is the direct crediting of dividend warrants into the shareholders bank account, replacing the sending of physical dividend warrants to shareholders.