As part of its efforts to develop the Botswana Stock Exchange (BSE) into a world class exchange, the BSE would shortly implement a CSD. The CSD has been funded by the Ministry of Finance and Development Planning as part of the Governments initiative to develop and broad base Botswanas capital market.
The CSD would make trading at the BSE efficient and will ensure that delays that may be experienced in obtaining share certificates are eliminated and thereby protecting investor interests.
It is important that the public understands the operations of the CSD and enjoy its many benefits.
The following is a brief introduction of the CSD and also provides a response to concerns that investors may have regarding holding securities in electronic form.
Question: What is the CSD?
Answer: CSD stands for the Central Securities Depository, which is a computer system that facilitates holding of securities in electronic accounts in contrast to paper certificates. The CSD is very similar to a bank and an account in the CSD operates in a similar manner to a bank account.
Question: How is a depository system similar to a bank?
Answer: The table below compares the CSD to the bank.
|Holds funds in accounts
||Holds securities in accounts
|Transfers funds between accounts on the instruction of the account holder
||Transfers securities between accounts on the instruction of the account holder
|Facilitates transfer without having to handle money
||Facilitates transfer of securities without having to handle paper certificates
|Facilitates the safekeeping of money
||Facilitates the safekeeping of securities
|Gives monthly statement of funds in accounts
||Gives monthly statement of securities in the CSD
Question: What are the benefits of the CSD?
- Paper certificates could be misplaced, lost , stolen, damaged by water or fire. It is not so with securities in the CSD. Adequate back up facilities ensure that securities accounts can be retrieved if lost.
- Securities in the CSD can be sold at anytime and hence trading will be faster.
- A CSD eliminates the risk of fake certificates since only those certificates authenticated by the transfer secretary will be deposited.
- A CSD also reduces the paper work involved in a trading of securities.
- A CSD enhances service delivery and quality through improved operational efficiencies
- CSD enables qualitative analysis and enhanced information delivery that is useful for investment decision making
Question: Why should I open a securities account?
Answer: You need to open a CSD account for the following reasons:
- Purchasing securities Your CSD account will be credited when you purchase securities. If you do not have a CSD account you will not be able to purchase securities on the BSE.
- Selling securities Your CSD account will require to be debited when you sell securities.
Question: Who should I contact to open a CSD account?
Answer: You should contact your stockbroker, custodian bank or any other participant authorised by the BSE to open CSD accounts on behalf of investors.
Question: Who are the Brokers and Custodians that you could contact?
| African Alliance Botswana Securities
|| (+267) 318 89 58
|| (+267) 391 04 36
| Capital Securities
|| (+267) 318 88 86
|| (+267) 318 88 87
| Motswedi securities
|| (+267) 318 86 27
|| (+267) 318 86 29
| Stockbrokers Botswana
|| (+267) 395 79 00
|| (+267) 395 79 01
| Standard Chartered Bank Securities Services
|| (+267) 362 5496
|| (+267) 362 5498
| Stanbic Custodial department
|| (+267) 361 80 26
|| (+267) 361 87 78
| First National Bank of Botswana Custodial Services
|| (+267) 364 28 87
|| (+267) 390 89 84
Question: How do I open a CSD account?
Answer: You open an account through your selected participant/s by completing a securities account opening form.
- To open an account you need the original National ID (Batswana) or passport (Foreigners).
- To open an account as a company you need the original certificate of incorporation.
Question: Can I open a joint account?
Answer: If required you can open joint accounts, it is similar to opening joint accounts in a bank.
Question: Can I open multiple accounts, i.e. with more than one participant?
Answer: Yes, you can open accounts with several participants if you so wish.
Question: What do I get when I open an account?
Answer: You will obtain from your broker or custodian Bank a CSD account number together with a duplicate copy of the account opening form that you have completed for your records.
Question: How do I convert the paper certificates I hold into electronic form, i.e. credit my CSD account?
Answer:The process of converting paper certificates (scrip) into electronic form and crediting your CSD account is known as a "dematerialisation".
You need to complete a deposit form (available with your participant) and submit the same together with the relevant certificates to your participant. Your participant will retain the original and return the duplicate form to you. You are requested to retain the duplicate copy of the paper certificate handed over the participant along with the duplicate copy of the deposit form for your records.
Your participant will forward the original documents to the transfer secretary company. The transfer secretary will authenticate the certificates i.e. check whether the document is genuine and if so, deposit your securities in the CSD. From the point of the deposit your CSD account will show a credit balance in respect of the securities dedposited.
Question: Can I convert my securities in the CSD to a paper certificate?
Answer:Yes, the process is known as a withdrawal. You could request your participant to do so by completing a withdrawal form. However, there is no adventage in you converting the securities into paper certificates.
Question: When I purchase or sell securities, how do I know my account has been debited or credited on the sale of seciruties?
Answer:The broker contract note confirm the purchase or sale followed by a monthly statement at the end of the month detailing your transaction and holdings.
Question: Is it possible to close an account with one broker and transfer securities to another broker?
Answer:Yes it is, you complete an intra account transfer form,subject to having made payment for the securities.
Question: Where can I get more information about the CSD?
Answer: Please feel free to contact/visit the Botswana Stock Exchange at Tel: 3180 201 Or Office Block 6 Plot 64511 Fairgrounds
CSD Application forms
- Company Account Opening form
- Individual Account Opening form
- CSD Deposit form
- CSD Transfers form
- CSD Withdrawal form
- English version
- Setswana version
Banks Branch Codes in CSD
- Status on Dematerialisation as 13 July 2009
- Status on Dematerialisation as 26TH MAY 2009
- Status on Dematerialisation as at 17 feb 2009