In a new development, investors at the Nairobi Securities Exchange (NSE) will start being charged a Ksh. 100 monthly charge on their stock market accounts. This move will see the Central Depository and Settlement Corporation (CDSC) collect nearly Sh1.8 billion a year.
According to the CDSC, this new charge will take effect as from 15th July 2022. This is expected to add onto the cost of investing in the NSE where trades can attract charges of up to two percent of the transaction value.
CDSC essentially facilitates holdings of shares in electronic accounts opened by shareholders and manages the process of transferring shares once trades have been made. The latest published annual report for 2020 shows CDSC had about 1.5 million accounts out of which 1.1 million were actively trading.
The new charge is expected to net CDSC Ksh. 1.8 Billion as opposed to the Ksh. 308 Million which the body made last year.
The charge comes as at a time when trading on the NSE has slumped and it is seen as a way of making a quick buck from the body. However, many investors are not happy about due to the fact that they are of the opinion that NSE should get more creative in trying to get investors back to the course so as to increase trading rather than taking the easy way out.
Dear @cdsckenya,
How can shareholders get certificates for their shares and close the account with you?
Dear @CMAKenya,
How can one opt out of trading listed shares through the @NSE_PLC?
Dear @CAK_Kenya,
I smell a monopoly above. Please investigate.
— coldtusker (@coldtusker) May 17, 2022