What is a CDS account?

This is a Central Depository System that allows an individual to electronically hold shares. They are unique to the shareholder.

What makes the CDS different from the physical certificate?

• It allows immediate transfer of securities
• It eliminates risks associated with physical certificates such as bad delivery, fake securities among others
• Reduction in paperwork involved in transfer of securities;
• Reduction of transaction cost
• Enables holding investments in equity, debt instruments and Government securities in a single account
• Automatic credit into securities account, of shares, arising out of split or a consolidation or a merger among others.

How do I open a CDS account?

• By completing and signing a securities account opening form with your CDA. The form is called CDS 1. It can be obtained through a stockbroker, an Investment Bank or a Custodian Bank who has been authorized by CDSC to open accounts in CDS on behalf of investors.

What do I need to open a CDS account?

Individuals

• ORIGINAL National ID or passport.
• TWO recently taken passport size photos.
• Individual will be required to finish the CDS accounts specimen signature mandate card (the card) .You need to sign the form (CDS 1) before your Central Depository Agent (CDA).
• Individuals can open singly or jointly.

Corporates

• ORIGINAL Certificate of registration/Valid License/ Certificate of Incorporation
• Directors of the company need to provide ID cards and passport size photos.
• Audited report for LAST financial year
• Tax exemption certificate from KRA if applicable.
• Minutes showing authorization by members to invest in securities, stating the signatories for the account, including names and identification numbers.
• You need to sign the form (CDS 1) before your Central Depository Agent (CDA).

What do I get when I open an account?

You will obtain from your CDA a CDS account number together with a duplicate copy of the account opening form for your records.