The CSDB clearing and settlement of trades involves the transfer of funds from the buyers to sellers and transfer of securities from sellers to buyers. The market follows a delivery versus payment (DvP) process with a T+3 settlement cycle. This is a modified BIS Model 2 with the net settlement of cash being performed before the gross settlement of securities.
The inter-participant settlement of funds takes place on or before 09:00 hours on settlement day, and then securities will be debited from the sellers’ account and credited to the buyers’ account at 09:30hrs subject to the settlement bank confirming that settlement of funds has taken place.
Services
DEPOSITORY SERVICES
For individual investors to open an account you need the original National ID (Batswana) or passport (Foreigners), proof of income and proof of residence.
For companies and other corporate bodies to open an account you need the original certificate of incorporation, copy of directors’ Identity documents, proof of company’s operating address, type of business and proof of income.
A client may transfer securities held through one participant to another where there is no change in beneficial ownership. An investor may have more than one account with the same or different participants. In this instance, the investor may transfer securities from one participant to another without executing a trade. This request may be executed by the CSDB through the relevant participants.
When securities are being transferred as a result of inheritance, the CSDB will require the appropriate legal documentation specifying the beneficiary of the said securities. This may include Letters of Administration or Execution with the will annexed or affidavit by the family appointing beneficiaries and death certificate.
When the transfer is as a result of a gift or a donation, the CSDB only accepts between immediate family members.
If any of the above conditions is not met, the investor should submit their request to the regulator (Non-Banking Financial Regulatory Authority) for approval.
CLEARING AND SETTLEMENT
ISSUER SERVICES
The CSDB provides the Nominated Transfer Secretaries (on behalf of issuers) with reports such as;
- Entitlement schedules
- Trade reports
- Transfers reports
- and processes all corporate actions on listed securities.
INVESTOR SERVICES
Electronic Statement of account
CSDB sends your monthly CSDB account statements to your email! You are now able to receive your statements at the comfort of your desk or from wherever you are.
To enjoy this service, simply ensure that we have your correct and up to date email address. You can do this by contacting your participant who will facilitate the process of updating your account details.
CSDB monthly statement of account
CSDB provides monthly statements of accounts to all holders of transacted securities accounts. CSDB mails these statements of accounts directly to securities account holders at the addresses recorded in the CSD system.
These statements take the place of share certificates.
PARTNERSHIPS AND ASSOCIATIONS
AMEDA – The Africa & Middle East Depositories Association
AMEDA was established in April 27 2005. AMEDA is a non-profit organization comprised of Central Securities Depositories and Clearing Houses in AFRICA & the MIDDLE EAST. The Africa & Middle East Depositories Association is formed for the benefit of its Member community, as an elective, inter-professional and regional facility to foster a spirit of cooperation, reciprocity and harmony among members, to achieve those objectives it determines from time to time.
REGULATORS
BANK OF BOTSWANA
CSDB is licensed by Bank of Botswana to operate a clearing and settlement system under section 3 of the National Clearance and Settlement Systems Act (No. 5 of 2003).