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

(b) What are the measures put in place to ensure the 36. Will the company registrars be willing to disclose 39. What are Stocks and Shares? 45. What are scrip or bonus shares?
success of the T+3? shareholding informa on to The Nigerian Stock
Exchange? Have they been carried along? Stocks and Shares represent ownership interest in a These are new shares made fully-paid by the capitaliza on
The Banks carry out se lement through the Nigerian business, i.e., those who own the shares of a company own of reserves and allo ed free of charge to ordinary
Interbank Se lement System (NIBSS) and Managers' The Exchange is empowered to call for the authen c the company shareholders in propor on to their exis ng holdings. In this
cheque. There is a trade guarantee fund from which trades register of members from registrars of Quoted Companies. ______________________________________________ process, frac ons of shares some mes arise and are o en
are se led in the event of overtrading, and Clearing and Furthermore, the registrars are represented in the review aggregated and sold, a er which a cash payment in respect
delivery are done by means of book entry a er securi es of CSCS Opera ons and are therefore carried along in the 40. How are stocks and shares (Securi es) bought on of the frac on is made to every shareholder en tled to it.
are deposited and traded on. developmental process. The registrars and CSCS The Stock Exchange? ______________________________________________
______________________________________________ complement each other.
______________________________________________ Securi es are bought and sold on The Exchange through 46. What does “Xsc” mean?
31. Will the benefit of using shares as collateral for raising
Dealing Member firms.
loan not be eroded under the system? 37. How is the last transac on batch meant for the ______________________________________________ It is a financial expression for “without the scrip”. A stock
closure of register handled? that is purchased during the “without the scrip” period will
No. The lender can make enquiry from the Depository as to not earn a scrip declared in that period for its new owner.
41. Who should buy shares?
the shareholding of the investor and upon the grant of loan,
The Exchange marks securi es on their closure dates. Once
advise that a lien be placed on the affected security.
again, se lement cycle is T+3 for equi es (Transac on day Anyone who is 18 years old and above is qualified to buy
Indeed, many shareholders have taken advantage of using plus three working days). ONLY se led transac ons are shares in Nigeria. Parents who may want to buy shares for 47. How are any of these securi es bought?
stockholdings in CSCS as collateral for loans. forwarded to the registrars for processing. their children are supposed to buy such shares in their own
______________________________________________
names and later transfer them to the children when they By filling an applica on form contained in a prospectus or
An Example: a ain the legal age of 18 by nominal transfer. through a Dealing Member firm.
32. How do you intend to handle the issue of share
______________________________________________ ______________________________________________
cer ficates or how to enable shareholders trade If a quoted company, say NIGERIA PLC is to close on June 19,
with them without any inhibi on or apprehension? 1998 it follows that: 42. With how much money should I venture into the 48. What is the evidence of the purchase of shares
Stock Market? and stocks?
Investors are to submit completed migra on forms and
* The NSE will mark the security on June 19, 1998
transfer forms to Dealing Member Firms for verifica on Most income levels can venture into stock market. Some If purchased through a prospectus, receipts are seldom
and deposit in CSCS Depository at least 24hours before * The last Cum-Div/SCRIP transac on day will be June 18, wealthy people and ins tu ons invest thousands or even issued, but cheque stubs and counterfoil of Postal Orders
trading, in line with the full demateriliza on procedure. 1998. millions of naira but investors with limited funds can also can serve the purpose. If bought through a Dealing
______________________________________________
par cipate as the minimum amount required really Member firm, a contract note in lieu of receipt is issued.
* Se lement day for the last CUM-DIV depends on the stocks which you purchase ______________________________________________
33. When do you plan to go completely paperless (no transac on becomes June 18 plus 3 working days. This ______________________________________________
paper share cer ficates)? translates to June 25, 1998. 49. What does a Stockbroker charge for his Services?
43. Can shares be transferred to Rela ves or
The process is on-going with the collabora on of the * The earliest me the transac on can get to the registrar companies owned by the transferor? A Stockbroker charges a commission known as a
regulatory bodies SEC and The Exchange. The specific date for processing is June 26, 1998. “Brokerage”. The charges vary, depending on the kind of
has not been announced. services provided: however, charges are controlled by the
A shareholder may transfer part or all of his shareholding to
______________________________________________ From the above analysis, the company secretaries/ a rela on, spouse, son, daughter or brother, a trust Securi es and Exchange Commission and the Council of
registrars are advised to accommodate the transac on established by him, or a company owned by him or any of The Nigerian Stock Exchange.
34. What becomes of the intermediate buyers? advice by ensuring that the registers are closed for at least his rela ons. This type of transfer is known as a nominal ______________________________________________
eight (8) days. Indeed, secretaries/registrars have been
transfer. To effect a nominal transfer, the investor should
The Inter-mediate buyers like other shareholders are free advised to allow for 10 working days a er closure of contact a dealing member firm. Even in the case of a dead 50. What does an investor gain by buying shares?
to request for cer ficates (at the point of purchase) which register before paying dividends. shareholder, there can be a transmission to his children,
for administra ve reasons are issued once a year usually at ______________________________________________ rela ve or beneficiaries. * dividend which is part of a company's profit
the closure of registers. ______________________________________________
______________________________________________ 38. What is the procedure to request for cer ficate? * bonus shares, i.e., extra shares fully paid out of reserve
44. Which Stocks should I choose? which are distributed to exis ng holders
35. How do we process new issues in rela on to The shareholder fills out Cer ficate Request Form (CSCS
cer ficates? CRF1) through his Dealing Member firm reques ng for a That depends on what you want from your investments. * capital apprecia on as market prices of shares increase.
cer ficate which will be passed on to the registrar with The stocks listed on The Exchange range from Government * right to a end mee ngs of the shareholders and
2017/2018 NSE FACTBOOK cer ficates as an op on to investors who now receive their (CHN) and the shareholder's system generated account to high. The first step is to determine your own objec ves * use of CSCS Stockholding Posi on as collateral for Bank 2017/2018 NSE FACTBOOK
relevant details such as CSCS Clearing House Number
New issues and bonus issues will con nue to have
stocks to ordinary shares and their dividends vary from low
par cipate in its delibera on as a vo ng member.
number. These are dis nct features which must be on the
allotments in electronic form - e-bonus/e-IPO.
first, discuss with a dealing member firm and then invest
cer ficate.

______________________________________________
borrowing
accordingly.
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