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FIRST REGISTRARS INTRODUCES E-LODGMENT WITH CSCS


First Registrars Introduces E-Lodgment

Living true to its mission statement, First Registrars Nigeria Limited has consistently reviewed its operational procedures vis-à-vis the realities of the changing environment and made innovations in line with international best practice.

The latest innovation is the e-lodgment facility which became operative from December 4, 2006. E-lodgment is the electronic mode of dematerializing duly verified share certificates and lodging the units thereof with the depository - Central Securities Clearing Systems Limited (CSCS). Here, CSCS will merely upload the data into their database.

Hitherto, the situation has been that shareholders intending to lodge their share certificates with the CSCS depository will hand them over to their stockbrokers along with duly completed transfer forms for onward delivery to the Registrars. Thereafter, the Registrar verifies the authenticity of the share certificates and the shareholders’ signatures on the transfer forms. Being satisfied that the documents submitted to him are in order, the Registrar lodges all the verified share certificates and the relative transfer forms to CSCS Ltd.

Upon receipt, CSCS captures the share certificates into their system before it becomes available for Stockbrokers to trade  observing the T+ 3 transaction cycle. At this point CSCS demobilizes the various share certificates and return them along with relative transfer forms for both transferors and transferees to the Registrar for callover and confirmation.

However, under the e-lodgment dispensation, Stockbrokers are expected to open accounts for first-time clients with CSCS Ltd and obtain Clearing House Numbers (CHN) before forwarding their share certificates to the Registrar for verification and subsequent lodgment. The CHN of each Shareholder must be properly reflected on the Certificate Deposit Form (CDF) and the relative Transfer form to constitute a valid lodgment.

By this, the process of lodgment has been simplified and offers tremendous benefits to all stakeholders. To the CSCS, the system has obviated the problem of capturing thousands of share certificates with the attendant costs. Closely connected with this is the elimination of human error associated with capturing large data thereby reducing the tolerance level of the system. It will also free data capturing staffs to be deployed to other urgent assignments.

To the Registrar, the challenges of reconciling accounts sharing same CHN will be minimized if not completely eliminated as CSCS will be confined to what is forwarded to them via the e-lodgment. Also, the fear of cloned share certificates finding their way into the system will be allayed and the onerous task of daily crosschecking of demobilized share certificates to confirm genuinety by the Registrar will be a thing of the past.

With the e-lodgment, it is believed that the speed of transactions from the point of submission with the Registrars to the point of eventual lodgment at the CSCS will be greatly enhanced and shareholders can now take advantage of price movements on the Exchange to make capital gains.

At this juncture, we congratulate the management and staff of First Registrars Nigeria Limited on this bold initiative and enjoin you to keep up the good work. It is also our candid opinion that other Registrars should emulate this move so as to improve the activities of the Nigeria Capital Market.

Furthermore, we wish to appreciate the Nigerian Stock Exchange and the Central Securities Clearing System Ltd, who have proved to be indispensable partners in progress, for the landmarks achieved would not have been without their cooperation and provision of necessary platforms.

The Securities & Exchange Commission, being the apex regulatory authority in the Nigerian Capital market is also enjoined to recognize milestones such as these and assist in whatever means possible to encourage innovative operators.

Shareholders are also advised to move their share certificates into the CSCS depository considering the enormous benefits the system offers.

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For First Bank of Nigeria Plc and Standard Alliance Insurance Plc Only

 

 

CFAO Delist from Nigerian Stock Exhange

At the instance of CFAO Nigeria Plc vide an application for voluntary delistment of its shares, the Nigerian Stock Exchange suspended trading of CFAO shares on Thursday

By this development, the majority shareholder, CFAO France with 65% equity will acquire the shares held by Nigerian shareholders and pay off Nigerian counterparts N3.75 per share for every 50 kobo held.  At the time of suspension of the shares, the ruling market price was N2.79 per share.

Before now, CFAO Nigeria Plc which has operated in the conglomerate sector of the economy and listed since August 28, 1971 will henceforth be a wholly owned subsidiary of CFAO France and will transact business as a private company after due re-registration.

The chairman, Chief Molade Okoya-Thomas had in a letter to shareholders attributed the reason for this development to negative performance and the nod for the company’s action was given by shareholders at an extra-ordinary general meeting held on December 23, 2006.

FBN CAPITAL LIMITED SET TO LAUNCH HERITAGE FUND

FBN Capital Limited, the wholly owned 'investment banking' subsidiary of First Bank of Nigeria Plc, is poised to launch, on behalf of the First Bank Group, the FBN Heritage Fund, an open-ended mutual fund investment product. The proposed Fund is balanced in its asset allocation structure, and has the objective of providing optimum risk-adjusted returns to prospective investors.

The economic reforms, deepening of the Nigerian Capital market and increased market sophistication have created an impetus for financial products diversification.  An extension to this, is the increased, and growing demand for professional management of portfolios and expertise in the delivery of services to ever discerning investors.

The Fund is the first among a series of Funds to be launched by the Group to satisfy demand for new and varied products and services by the investing public. Our long-range plan is to roll out specialist Funds and sector Funds to sustain the interest of every class of investor.

First Bank Group remains focused on its strategic vision to be a 'world- class financial supermarket' with the mission to deliver a full range of first class banking and financial products. With the launch of FBN Heritage Fund, our retail and wholesale customers and indeed the investing public at large would enjoy access to an investment product across our extensive network.

Click the links to learn more about mutual funds and FBN Heritage Fund

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