1. Immobilisation of securities ie elimination of physical movement of securities.
2. Dematerialisation i.e elimination of physical certificates or documents showing entitlement to a security so that ownership exists only as computer records.
3. Effective Delivery Vs. payment (DVP) ie simultaneous delivery and payment between the 2 parties exchanging or transferring securities. This can be done without delay if CDS is linked to the central payment clearing system e.g CBK.
4. Provision of detailed listings of investors according to the type of securities they hold e.g ordinary shares, preference shares.
5. Effective Distribution of Dividends, interests, rights issues and bonus issues.
6. Provision of book entry account ie electronic exchange of ownership of securities and payment of cash.
Kavungya answered the question on March 12, 2019 at 05:58
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