Central Depository and Settlement Corporation (CDSC) chief executive
Rose Mambo at a past function. Dividend cheques from the Nairobi
Securities Exchange worth millions of shillings were sent to the wrong
recipients in "shareholders address mix-up". PHOTO | FILE| NATION MEDIA
GROUP
Dividend cheques from the Nairobi Securities
Exchange worth millions of shillings that were sent to the wrong
recipients in "shareholders address mix-up" have been cancelled.
The
CDSC, which manages all stock accounts on an online platform, blamed
the error on a technical hitch that supposedly caused a mix-up of the
address lists resulting in sending dividend cheques to the wrong
addresses.
In a paid
advertisement, CDSC allayed fears of any loss saying they had cancelled
all cheques that had been sent and was in the process of preparing new
ones for issuance and dispatch to the right accounts.
“We sincerely apologise to our client, the Nairobi Securities Exchange and all shareholders for this error,” the advert said.
CDSC says it is in the process of putting in adequate measures to ensure an immediate resolution of the dividend disbursements.
CDSC ONLINE PLATFORM
The
CDSC's online platform was established to introduce a paperless and
secure system of handling transactions at NSE with a view to enhancing
transparency as activities can be traced from the sellers, dealers and
eventual buyers who receive prompt massages from CDSC upon settlement of
all dealings.
But recent incident
raises fears of a major loophole at CDSC over its ability to safeguard
client information that has now leaked to other people.
CDSC
is also tasked with keeping records of all shareholders at NSE and with
its coming into effect saw the share certificates done away with in
favour of an online based system that would help fast track trading and
settlement of payments.
Since its
inception, CDSC established and operated a central depository system for
clearing, settlement and depository services for securities listed on
the NSE.
It was established by an
Act of Parliament that empowered the Capital Markets Authority to
establish and operate a system for the central handling of deliveries
and settlement of securities in the Capital Markets in Kenya.
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