Requirements For Opening A CDS Account In Kenya

Requirements For Opening A CDS Account In Kenya

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This article focuses on the requirements for opening a CDS account in Kenya. Central Depository System (CDS) account is an electronic account that holds shares and is used to facilitate the exchange of shares between shareholders or investors and the stock exchange. It is necessary for one to open a CDS account if he/she intends to trade in shares listed on the Nairobi Stock Exchange.

A CDS account can be opened by individuals or corporates such as companies, co-operatives, societies, banks, non-bank financial institutions, state corporations and NGOs. The account can be opened through third parties/brokers licensed by CBK and the Capital Markets Authority. It can also be opened through the Central Bank of Kenya.

Requirements For Opening A CDS Account In Kenya

This article will majorly focus on the requirements for opening a CDS account for corporate entities and individuals through the Central Bank of Kenya.

Requirements For Corporate Entities

1. For companies, all authorised signatories will be required to complete the specimen signature mandate card which can be collected from any Central Bank of Kenya branches. The card should be completed in Block Letters and must not be folded or disfigured in any way.

2. Authorised signatories will be required to sign the card in the presence of a designated CBK officer or any authorised agent.

3. On completion, the applicants will be required to submit the completed cards together with one recent coloured passport size photograph. The reverse side of the photograph must be certified by the applicants bankers and stamped.

4. Originals and copies of Certificate of incorporation, board resolution appointing authorised signatories detailing names and identification numbers, National Identity cards, valid passport or alien certificate. The copies will be retained by CBK.

5. Emboss corporate seal on the CDS card.

6. Two signatories of your bankers, whether a commercial bank or financial institution must sign and stamp the card confirming the bank account details.

 Requirements For Individuals

Individuals may hold a single or joint CDS accounts but no minor accounts.

1.Each individual applicant must complete the CDS account specimen signature mandate card which can be collected from any of the Central Bank of Kenya branches. The card must be completed in Block letters and must not be folded or disfigured in any way.

2. Signatories to the CDS account will be required to sign the card in the presence of a designated CBK officer or any authorised agent.

3. On completion, applicants will personally submit the duly completed card together with one recent passport size photograph of the account holder.

4. The reverse side of the photograph must be certified by the applicants bankers and stamped. The photograph must not be stapled or glued to the card.

5. Original and clear copy of your KRA PIN, National ID/Passport/Alien certificate.

6. Two signatories of your bankers whether a commercial bank or financial institution must sign and stamp the card, confirming the bank account details.

7. Fill out the email indemnity agreement which requires a witness.

8. Register for CBK Treasury Mobile Direct for specific mobile services on government securities.

How to Open a CDS Account

1. Visit any of theĀ approved Central Depository in Kenya

2. Produce your ID, 2 passport photos, and your KRA PIN certificate.

3. Fill in an account opening/maintenance form ( CDS-1)

4. Wait for confirmation from your CDA of the account opening status.

Central Depository & Settlement Corporation (CDSC) Contacts

Office: Nation Center, 10th Floor, Kimathi Street

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