Special account is one of the products created by CSCS to encourage local and foreign institutional and high net-worth investors to invest in the Nigerian capital market.
CSCS Plc has taken measures to allay any apprehension investors may have on the security of their stocks under the cscs System procedures. In line with this procedure, provision has been made for individual and corporate investors to be members of the Clearing House System through registration. Under this system, investors are able to have special stock accounts separated from those under the stockbroking firms through which they buy or sell shares in order to have full control and management of their shareholding in CSCS System.
A shareholder can become a member of special account holder in cscs System by collecting a free Special Account Form from CSCS office. The Form is filled and submitted to CSCS with the required fee of =N=5,000.00 for individual stock account or =N=10,000.00 for Corporate stock account or Family account. A signature mandate card is required to be completed by the investor for future transactions or correspondences with CSCS. These arrangements ensure that the special account can only be operated strictly on the owner's instruction through the mandate instruction in CSCS
At the point of opening the account in CSCS System following the submission of the completed form, the investor's stockholding under different stockbroking firms are consolidated in to the special account, using the detachment form containing the various stocks and duly signed by the resident stockbroking firm(s) and the investor.
An investor intending to sell parts or whole shares in the special account is expected to communicate to CSCS by filling the sale detachment form. Only the signature(s) on the mandate card is/are to be appended on this, specifying the only quantity of shares expected to be moved and also stating the selling stockbroking firm of the investor's choice. The form must also be signed by the selling stockbroking firm.
Subsequent purchases of stocks are made by the stockbroking firms according to the mandate of the investor. Such buys can be moved into the investor's special account by the stockbroking firm or alternatively via a completed detachment form, jointly signed by the two parties and submitted to CSCS by either party for processing.
- Various shares bought from different stockbroking firms are consolidated into one account.
- Shares are now under the control of the investor only.
- The Brokers can only have access to the quantity the investor wants him to see or have access to.
- Brokers can make purchase on behalf of their clients and instruct CSCS to move same to the special accounts of the investors. Note that only the investor can move shares out of the special account.
- Stock positions of special account holders can be sent directly to investors by CSCS