Securities and Exchange Commission SEC has said that, the implementation of Direct Cash Settlement (DCS) will be effective on January 4, this year. The DCS is a process where cash proceeds from trades executed by Brokers on the Exchange settles directly into investors’ bank account.
The Commission’s circular tagged “the commencement of Direct Cash Settlement” issued to capital market operators and investing public said DCS aimed at improving transparency, entrenching investor confidence, reducing market infractions and improving trading velocity.
It said that based on an agreement reached with the Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS) PLC, Association of Stockbroking Houses of Nigeria (ASHON) and Nigeria Inter-Bank Settlement System (NIBSS) Plc, Dealing Firms are hereby directed to send relevant information to NIBSS not later than Wednesday, December 30, 2015 to enable the Firms log-on to NIBSS portal for validation of Bank Verification Numbers (BVN).
It further said that all investors are expected to complete a Direct Cash Settlement form with their Stockbroking Firms. The Commission explained that forms could also be downloaded from the website of SEC, NSE, CSCS, ASHON and individual Stockbroking Firms and forwarded to investors’ respective Stockbroking Firms after completion.
