Page 270 - 2017-2018 NSE FACTBOOK.cdr

2017/2018 NSE FACT BOOK 2017/2018 NSE FACT BOOK
The Performance Documentary of Listed Nigerian Companies The Performance Documentary of Listed Nigerian Companies

of The Nigerian Stock Exchange” on their le er headed 16. What are the du es of a company Registrar? 22. What is the rela onship between Investors and on the NSE trading pla orm on receipt of investor's
paper, contract notes, brochures and other official Dealing Members? mandate. On trade day (T) + 3, proceed from the sale
documents they use in the transac on of stockbroking * Act as Agents to the Companies who appoint them. se les into the investor's bank account (if he/she has opted
business. For the Capital Market to be vibrant, effec ve and Investor- into the Direct Cash se lement framework) or the Dealing
______________________________________________ * Register the shares and the names of the owners in the friendly, a Dealing Member firm must know its Member firm's se lement bank account for transmission
members' (shareholders') register. Client/Investor, because a great degree of reliance and to the investor.
11. What other services do Dealing Member firms trust will be placed on the decisions he takes on behalf of
provide? * Prepare share cer ficates and send them to the his Client/Investor. It therefore means that the Dealing ______________________________________________
shareholders Member firm must command the confidence of his client.
* Provide professional advice on the selec on and ______________________________________________ 27. Can an investor have more than one Dealing
management of investments. * Pay-out approved dividend to shareholders Members firm under the CSCS opera ons?
* Por olio Management services. ______________________________________________ 23. (a) What is CHN?
Yes. The investor is free to deal with several Dealing
* Prepare companies and bring them to raise funds on 17. What is the Alterna ve Securi es Market CHN represents Clearing House Number assigned to every Members at the same me or change from one Dealing
the Capital Market. (ASeM)? shareholder at the first point of entry into the CSCS system Member firm to another.
by comple ng CSCS - R005 shareholders par culars. ______________________________________________
* Financial Advisory or Designated Adviser The Alterna ve Securi es Market (ASeM) is a specialized
______________________________________________ board of The Nigerian Stock Exchange (NSE) for emerging (b) How many mes are shareholders required to 28. (a) Can a client (shareholder) take the CSCS
businesses (small and mid-sized companies with high complete the shareholders par culars form? statement to another Stockbroking firm?
12. How are the ac vi es of Dealing Members growth poten al). ASeM provides the opportunity for
controlled? these companies to raise long term capital at rela vely low Shareholders are required to complete the form only once. Yes, he can.
cost from the capital market, while crea ng opportuni es They are to provide the same CHN to all subsequent
As members of The Nigerian Stock Exchange, they are for growth and ins tu onalisa on of companies listed on Dealing Member firms they have transac ons with for ease (b) How frequent will the statement of stock posi on
regulated by a body of rules and regula ons which govern the board. of reference. from CSCS be issued?
their rela onship with The Stock Exchange, their clients, ______________________________________________
the inves ng public, and other members of The Exchange. (c) What are account numbers and how are they Upon request and payment of the requisite fees, CSCS will
______________________________________________ 18. What are the basic lis ng requirements for the obtained? issue a statement of stock posi on to an investor.
ASeM Board? ______________________________________________
13. Why are Stockbrokers' ac vi es regulated? This is a CSCS computer generated account number that is
The full list of requirements is available on the ASeM allocated to a new shareholder. It is unique to each Dealing 29. Can a shareholder request for the statement of
The regula on of the ac vi es of Dealing Member firms is webpage of our website: www.nse.com.ng/issuers/ Member firm. A shareholder can have as many accounts as his stock posi on directly from the CSCS?
to ensure that they act in accordance with the rules and lis ng-your-company/lis ng-requirements the number of Dealing Member firms he uses but one
regula ons governing their ac vi es for the orderly pursuit ______________________________________________ account per house. The Dealing Member firms are expected to request for
of their business and the protec on of the inves ng public. ______________________________________________ their clients' stock posi on. However, since transparency is
______________________________________________ 19. How much can a company raise through the one of the cardinal focuses of CSCS, a shareholder can
ASeM Board? 24. Can an investor withdraw his/her cer ficates request for his statement of stockholding from CSCS in
14. How are the current prices of securi es traded on before or a er trading? wri ng or by comple ng a stock posi on request form with
the Nigerian Stock Market known? There are no limits on the amount of capital an ASeM CSCS through an online process. The shareholder's name
company can raise. Once a cer ficate is deposited with the Depository, it is and account number must be specified in the le er/form.
The Nigerian Stock Exchange publishes a document known ______________________________________________ immobilized and can therefore not be withdrawn At the point of collec ng the statement of stock posi on,
as the “Daily Official List” which gives full informa on on ______________________________________________ the shareholder will be required to show proof of
the changes in the prices and earnings of the Listed 20. How long does the lis ng process take? ownership.
Securi es. 25. When the stockbroker deposits the investor's ______________________________________________
______________________________________________ There is no exact me frame to lis ng as this depends on share cer ficate with the Depository, what does
the method of lis ng and ac vi es to be undertaken by the he get in return as evidence of the lodgment? 30. (a) What is the rela onship between The NSE and
15. Who do I approach when I have problems with a company before making its applica ons to The Nigerian CSCS?
share cer ficate or dividend? Stock Exchange. The Financial Adviser/ Issuing House/ He gets a receipt/acknowledgment.
Stockbroker mandated by the company will provide a The NSE is a shareholder in CSCS which is an associate
The Registrar of the company. metable of ac vi es towards lis ng. 26. If a new investor wants to sell, what is the company of The NSE. It is nonetheless an independent
procedure? company. All shares to be traded on The Exchange's floors
2017/2018 NSE FACTBOOK The accoun ng standard for the ASeM Board is the He/she instructs his/her Dealing Member firm to sell from se lements of trades for The Exchange. 2017/2018 NSE FACTBOOK
21. What is the accoun ng standard for the ASeM
must be deposited with the CSCS, which does clearing and
Board?
stockholdings in CSCS system. The Dealing Member trades

268 Interna onal Financial Repor ng Standards (IFRS) format. 269