The Direct Cash Settlement (DCS) is a process where cash proceeds from trades executed by brokers on the Nigerian Stock Exchange is remitted directly into investors’ nominated bank account. This is part of the on-going initiatives to improve transparency in the exchange, ensuring investor confidence, reducing infractions in the market as well as improving trading velocity..
As against the current general practice where proceed of sale for investors’ transactions go into the bank accounts of the brokers for onward disbursement to their clients, the practice under the ‘Direct Cash Settlement’ would be to send the net proceeds directly from the clearing and settlement system to investors’ accounts while the existing practice of payment through brokers would only happen where clients opt not participate in the initiative.
Respond to Change
To ease the burden of compliance across its clients, InfoWARE has fast-tracked the implementation of the Direct Cash Settlement initiative; ensuring it is handled seamlessly without interrupting existing business processes.
According to the CEO of InfoWARE Limited, Uwa Agbonile, “Obviously, we believe this is an important step towards boosting investors’ confidence in the market. As a leading provider of solutions in the Nigerian Capital Market, InfoWARE has consistently and actively driven adoption of new policies in the industry for the Dealing community. We will continue to expand our platform capabilities to support them as they grow the scope of their business and ultimately be able to meet upcoming operational requirements posed by clients, regulators and the markets in which they operate.“
The new DCS implementation delivers great flexibility for investors with multiple CSCS accounts to enable them choose direct and/or non-direct settlement strategies.
To learn about how our team can help you with swift and comfortable deployment process, please contact your InfoWARE Account Officer or solutions@infowarelimited.com.
