d
  1. Deposits of Share Certificates:
    Hitherto, stockbrokers now deposit verified securities with CSCS at least 24 hours before transactions on them at the trading floor. This ensures that shares to be traded on the floors were in the custody of the CSCS. By implication, a buyer of stocks will be assured of the availability of the shares he has paid for. Stockbrokers were required to deposit share certificates with CSCS between 9.00am to 2.00pm every working day.The procedure has been modified to eliminate incidence of forged certificates and verification of registrar's signatures. Stockbrokers now submit documents to the registrars for verification after which the registrars send the documents directly to CSCS. This procedure has wiped out the black market.

  2. Trading Accounts:
    The CSCS operation requires stock broking firms to fund their Trading Accounts in anyone of the designated banks before going to the trading floor. This also ensures that a seller of shares is assured that money for payment has been kept in the Trading Account. This is a departure from the pre-CSCS era where some brokers sold stocks they could not deliver or bought stocks without the funds to pay for them.

  3. Clearing of Trades:
    The CSCS is the agent of The Nigerian Stock Exchange for clearing and settlement of Trades. After transaction on the floor, the Back Office of The Exchange sends the data information of trades done to CSCS before 4 p.m. This is processed ready for settlement by the settlement banks.

  4. Settlement of Trades
    The CSCS sends data of Cleared Trades in diskettes to the settlement banks on or before 5 p.m. every working day. The settlement banks are required to process the data information from CSCS by debiting and crediting the accounts of the stockbrokers and effect settlement through the Nigerian Inter-Bank Settlement System (NIBSS).

  5. Registrar Information
    1. Dematerialized Certificates:
    2. Certificates deposited with CSCS are entered in electronic-book form and dematerialized and re-cycled to the relevant registrars within 48 hours. It is required that they scrutinize the securities against their records to ensure that they are genuine and that the verification was done by the registrar. Any forgery or fraudulent act should be reported to CSCS within 48 hours to enable CSCS stop settlement of the transaction on the shares.
    3. Update of Register
      the buying and selling of shares on the floor of The Exchange affect the registers of the listed securities. The CSCS sends data information of these changes to registrars in electronic and hard copies every two weeks (every week for very active securities) and after the closure of register of securities for payment of dividends and the issuance of bonuses.

  6. Trading In Rights
    Rights - When a company wants to raise more funds by issuing additional securities, it may give its shareholders the opportunity, ahead of others, to buy the new securities in proportion to the number of shares each owns. The piece of paper evidencing this privilege is called a right. Because the additional stock is usually offered to stockholders below the current market price, rights ordinarily have a market value of their own and are actively traded. In most cases, they must be exercised within a relatively short period. Failure to exercise or sell rights may result in actual loss to the holder. Trading In Rights was introduced to The Nigerian Stock Exchange to increase tradable securities and to enable shareholders who are unable to take up the rights to sell and avoid total loss.

Conclusion:
Other innovations made by CSCS Plc which have penchant for consistently providing value added services to capital market growth in Nigeria include but not limited to the following:

(a) E-bonus
(b) E-IPO
(c) Internet Trading
(d) Registrars on-line and real time with CSCS
(e) NIBSS on-line and real tine with CSCS Plc

The CSCS has made visible strides in the capital market and will continue to respond to the needs of the stock market to further enhance transparency and speedy settlement of transactions.