This a significant step forward in helping the NSE regain some of the momentum from 204-6 period. The automation of share trading at a was huge step in increasing share trading and share ownership. The subsequent collapse of FT, Nyaga and lately Ngenye Kariuki accounts for at least 30% of the NSE losses suffered in 2007-9 period. The wisdom of increasing CDSKenya's visibility was an obvious step in trying to restore investors confidence that they would not lose their hard earned wealth. CDS Kenya under Rose Mambo's able leadership has been innovative allowing investors to register so they can get an sms when an order is transacted on their CDS account and also emailing monthly statements to investors so they can monitor their CDS accounts.The online service allows you to view your account via http://www.cdsckenya.com/ and all you have to do is remember your CDS account number and the ID number or passport number you used to open your account.
Two things to note:
- You will not be able to see any of the cash you may foolishly have left lying in your CDS account. Note further that if you broker was to collapse, only your shares are 100% guaranteed. Any cash will be subject to Ksh50,000 maximum payout.
- NSE operates a t+5 days settlement system. Which in plain English means that you won't be able to see any sale/purchases made over the last 5 business days in you CDS account. This is a bit of a loophole that I am sure brokers and can exploit.
Although CMA is nominally in charge of the stock market, we must admit that they way it currently operates is almost certain to continue causing us problems as investors at the NSE. Right now we have three issues that I am trying to figure out. One is the issue of refunds which has been a pain since KenGen IPO. One can understand that CBK wants to start doing its job of inflation-control and can't do so until it has a realistic picture of the money supply issue. But changing the rules of the game on the 80th minutes is a no-no on a football pitch as it should be on the stockmarket. We now have a backlog of cheques and refund issues that will probably take KenGen-type of periods to resolve. 2ndly, you can't have a situation where the institution whose importance to the stockmarket is almost on par with the CBK in its area operating in complete darkness. Why pray doesn't CDSC have internet or email contacts?
