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THE CENTRAL DEPOSITORY SYSTEM (C.D.S)
This paper looks at Central depository system which is settlement depository and registry system used for trading shares in the market taking a case study of Kenya. The paper discusses on it brief through looking at The process of settlement, the advantages of CDS and the Challenges facing CDS implementation in Kenya
|language || ||english
|wordcount || ||1432 (cca 4 pages)
|contextual quality || ||N/A
|language level || ||N/A
|price || ||free
|sources || ||3
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Preview of the essay: THE CENTRAL DEPOSITORY SYSTEM (C.D.S)
THE CENTRAL DEPOSITORY SYSTEM (C.D.S) The CDS is an automated clearing, settlement depository and registry system for shares. The central depository may be classified from the perspective of physical certificates or from a functional perspective. Under the physical existence perspective, there are two types of depositories namely: a) Dematerialized CDS- physical certificates are not issued at all to some shareholders and change of ownership is by entries recorded in the ...
... cycle- day of transactions plus five day’s way of settlement causes delays in delivery of money to investors.
2) The fact that most investors are not adequately banked makes it difficult to realize real time payments, leading to delays in payment.
3) Conflicting details in share certificates make immobilization process slow.
Essay is in categories
Capital Markets & Exchanges