FAQs

Below are the most frequently asked questions that we have had. If you do not find the answer to your questions below, please feel feel free to email us customercare-sbgsecurities@stanbic.com.

1. What is a CDS account? - 

Central Depository and Settlement Corporation (CDSC) is an account where investors’ securities are stored electronically. This eliminates the use of certificates in trading at the Nairobi Securities Exchange.

2. How can I sell my shares in certificate form? - 

To sell your shares in certificate form you must:

  • • Fill a CDS 2 form and submit it with the certificate to us for forwarding to the registrar and CDSC for crediting to your CDS account
  • • Certificates need to be immobilized into a CDS account in order to be able to trade the shares. 

  •  3. How does one open a CDS account with SBGS? - 

By completing and signing the account opening form. The following are also required; For individual or joint account;

  • • ID / Passport copy
  • • 2 color passport size photos
  • • Proof of income and residence For a corporation, the certificate of incorporation is also required.

The originals of the above documents need to be sighted by SBG Securities staff for certification, or certified by a notary public.


4. Why do I need to provide all these documents? - 

A new regulation from the Capital Markets Authority requires stock brokers to carry out a due diligence on their clients. A key benefit of this process is that it will enable us to prevent identity theft, fraud and thereby protect your investment with us.


5. What are the account opening requirements if I already hold a bank account with CfC Stanbic Bank? - 

If you are confirmed to be KYC compliant at the bank, we will only require you to fill a CDSC account opening form, and provide us with 2 passport size photos and a copy of your ID or passport.


6. What is the minimum amount required to invest in the Nairobi Securities Exchange? - 

There is no minimum investment requirement. However, the minimum number of shares that can be sold or purchased is 100.


7. What is the role of the Nairobi Securities Exchange? - 

The Nairobi Securities Exchange (NSE) is where shares (Equities) and bonds (Fixed Income Securities) are traded. The NSE is open Monday to Friday from 8.00 am to 5.00 pm. Trading activities start at 9.00 am to 3.00 pm. The NSE is closed on public holidays.


8. What is the role of the Capital Markets Authority? - 

The Capital Markets Authority (CMA) is a government organization that regulates the Capital Markets of Kenya. Its role includes overseeing the operations of the Nairobi Securities Exchange, the Central Depository and Settlement Corporation, and licensing of stockbrokers.


9. Who is a stockbroker? - 

This a market professional, licensed by the Capital Markets Authority who buys and sells securities on behalf of their clients at the Nairobi Securities Exchange in return for a brokerage commission.


10. What is a bond? - 

A bond is a loan between a borrower and a lender. It is a debt investment in which an investor lends the government or a corporation funds for which he receives periodic interest payments known at coupons.


11. How can I invest in government bonds? - 

Open a CDS account at the Central Bank of Kenya.


12. How do I open a CDS account at Central Bank? - 

Collect a CDS opening card from Central Bank of Kenya with an original copy of your identification. The card has three sections:

  • • Client details 
  • • Bank details 
  • • CBK verification.

The investor takes the card to his/her bank for the bank signatories to sign and have the banking details filled. Together with this, the investor should present a copy of the ID/ Passport and a passport sized photo for certification by the bank. Once the card has been filled, the client personally takes the card back to CBK together with the following; 

  • • Certified copy of the ID/passport.
  • • Certified copy of the passport sized photo.


13. How can I trade my bonds? - 

Bonds are traded at the Nairobi Securities Exchange. One needs to place an order with their stockbroker.


14. Can I trade my bonds online? - 

Bond transactions cannot be done online because you need to sign an order. 


15. What is the minimum investment I can make in bonds? - 

The minimum investment in bonds is Kshs 50,000.00. Additional investments should be in lots of Kshs 50,000.00.


16. What are the CDS documents and what are they used for? - 

CDS 1
This form is completed by the investor who wishes to open a CDS account to trade in shares and bonds at the Nairobi Securities Exchange. The form is also used to change contact details or dividend disposal of an existing account.

CDS 2
This form is used to deposit share certificates into an existing CDS account (immobilization). The investor completes the form which is then forwarded to the Registrar for verification, who then advise the CDSC to credit the shares into the client’s CDS account.

CDS 3
This form is completed by the investor who wishes to withdraw their shares from the CDS system. Should such an investor wish to trade the same later, they must immobilize the shares back into their CDS account. 

CDS 4A/B
This form is completed by the investor who wishes to transfer their securities from one CDA (Stockbroker or Custodian) to another. 

CDS 5
This form is used for borrowing money against securities held in the CDS account. The form is completed and signed by the investor and the CDA as evidence and authenticity of ownership of the securities. The lending institution then signs and delivers the form to CDSC through the CDA for their action. The form must be accompanied by a letter in duplicate copy written to the CDSC by the lender giving instructions to place a lien on the shares. The CDSC ensures that the lenders interests are protected until the loan is fully paid. A fee of Kshs 1,000 is payable to the CDSC for this service. 

CDS 6
This form is used to release securities for which the loans have been repaid. The lending institution signs and stamps the form and sends the form to the CDSC through us, the CDA, with a letter in duplicate copy requesting the release of the shares and KShs 1,000 payable to the CDSC. The form is also used to deposit foreclosure securities for the purpose of sale once an individual has defaulted.

CDS 7
This form is used for private transfers of securities from one account to another. Approval for private transfers must be obtained in accordance with the CMA requirements before submitting the form to CDSC for action.


17. What is immobilization? - 

This is the process of converting certificated shares to electronic form in CDSC.


18. What if I want my certificate back (De-materialization)? - 

The Kenyan securities market will be fully dematerialized by November 2013. All shares will therefore be held as electronic records in CDS accounts. Certificates will no longer be used.


19. Who is a registrar? - 

This is a record keeper of shareholders of a listed company.


20. How do I move shares from one broker to another? - 

A CDS 4 form needs to be filled in order to move shares from one broker to another. This form indicates where the shares are being transferred from, and where you would like them to be transferred to. The form needs to be signed by both brokers.


21. How quickly can my order be executed? - 

Execution of orders is determined by demand and supply at the market.


22. Can I use my shares to get a loan? - 

Yes. A Pledge form (CDS 5) is used to take a loan with shares as collateral. These shares are frozen so that they cannot be sold until the loan is fully paid off.


23. What happens to my shares when I complete paying off my loan? - 

The lender completes a pledge discharge form (CDS 6) and forwards to the CDSC. The shares are then released and can be sold by the investor.


24. What happens to my shares when a counter is suspended? - 

Your shares remain intact. When the suspension of the counter is lifted, you can then trade in the shares.


25. How long does it take for a trade to settle? - 

A trade takes 4 working days to settle.


26. How are share-price spreads determined? - 

Price spreads are set by the Nairobi Securities Exchange. Share prices change as follows; 

  • • Below Kshs 20.00 – 0.05 
  • • Kshs 21.00 to Kshs 50.00 – 0.25 
  • • Kshs 51.00 to Kshs 100 – 0.50 
  • • Above Kshs 100 – 1.00


27. Can I place an order at any price? - 

No. Share prices can only go up or down by 10% from the previous days average prices. Prices must lie within this price range. In addition, price spreads must be considered when giving in orders as follows; 

  • • Below Kshs 20.00 – 0.05
  • • Kshs 21.00 to Kshs 50.00 – 0.25 
  • • Kshs 51.00 to Kshs 100 – 0.50 
  • • Above Kshs 100 – 1.00


28. When does the securities market open? - 

The securities market opens for trading at 9.00 am and closes at 3.00 pm, with the following sessions; 

  • • Pre-open – 9.00 am to 9.29 am
  • • Auction – 9.30 am
  • • Regular trading – 9.31 am – 3.00 pm 
  • • Close of trading – 3.00 pm


29. How do I receive my dividends? - 

Dividends are sent to investors by the company registrars via cheque or EFT as specified in your CDSC account.


30. What should I do if I want to receive my dividends via EFT? - 

You are required to fill a CDS 1 form for change of bank details. This is forwarded to the CDSC who amend your bank details as requested.


31. How can I transfer money to my share trading (CDS) account in order to purchase shares? - 

We accept deposits in cash, cheque, RTGS, telegraphic transfer, or EFT. 

Account Name: SBG SECURITIES
Bank name: CfC Stanbic Bank
Account No: 0100000020499
Branch where account is held: Chiromo
Swift Code: SBICKENX
OR;
Account Name: SBG SECURITIES
Bank name: Barclays Bank of Kenya
Account No: 1323088
Branch where account is held: Eldoret
Swift Code: BARCKENX
Kindly remember to always quote your CDS account number when transferring funds.


32. How soon after depositing funds into my CDS account can I buy shares? - 

Once funds are deposited, one can place orders as soon as the funds are reflected in the CDS account.


33. What is iTrader? - 

iTrader is an Online Share Trading product developed by SBG Securities to give investors real time access to their share trading accounts. Investors have direct access to investing in the Nairobi Securities Exchange using a customized trading system, Active Lite that gives real time access to;
a. Transactional Statements
b. Portfolio valuation
c. Contract notes
d. Order Status Tracking.

The benefits include:
a. Transparency on your CDSC account
b. Convenience
c. Control
d. Efficiency
e. Time Saving
f. Access to real time market information


34. What is unique about iTrader at SBG Securities? - 

SBG Securities offers its clients real time access to market prices, research information, and 24 hour access to their trading accounts giving them full control of their investments. The platform allows clients to place orders, view real time market prices, view their transaction statements, portfolio valuations, and contracts. 


35. How often do I receive my transaction statement? - 

The online platform gives you real time access to your transaction statements, 24 hours a day. You may also receive your transaction statements from any SBG Securities branch.


36. How does one register to trade online? - 

To trade online at SBG Securites, one is required to first open a CDS account. Once the account is opened, the iTrader account can be activated online by visiting our website www.sbgsecurities.co.ke to register. On registration, your log in and password details will be sent to you and you may proceed to enjoy the convenience of trading online.


37. How soon can I log on to iTrader after registration? - 

You can log on to your iTrader account at the next trading session.


38. What are the charges for having an iTrader account? - 

There are no additional charges for trading online.


39. What are the charges for trading in shares? - 

Charges are encountered only when a trade is executed as follow;

  • • For a consideration over Kshs 100,000 – 1.85% 
  • • For a consideration below Kshs 100, 000 – 2.12%

These charges include brokerage commission and statutory charges.


40. How will I know when my order is executed? - 

Using iTrader you can view the status of your order. From this platform you can also amend your unexecuted order.


41. How long are orders valid for? - 

By default, orders are valid for 7 calendar days, after which they expire if not executed. However, there is an option to place an order valid for a shorter period.


42. Can I amend an order after I have keyed in it online? - 

As long as an order has not been executed, the share price and quantity can be amended.


43. How can I get paid after making a payment request? - 

Our payment options are via EFT, cheque, telegraphic transfer, or RTGS. All that is required is a duly completed payment request.


44. What happens if I forget my iTrader account password? - 

You can retrieve your password by accessing the hyperlink Forgot password on the log in page. Follow the step by step procedure and your password will be sent directly to your email.


45. How often am I required to change my password? - 

iTrader has a change password option where investors can change their passwords at any time. Mandatory password changes are every 30 days.


46. How soon is my order sent to the market after I key it in online? - 

The order is sent to the market immediately after validation that takes milliseconds. Sales orders are validated for holdings while purchase orders are validated for funds.


47. Will SBG Securities train me on how to use iTrader? - 

Yes. Training is available to all online clients. There is also a manual available to all iTrader clients.


48. Can I open an iTrader account for a company or joint account? - 

Yes. You are required to sign a mandate on account opening. This gives one person authority to trade on the account. This is the person given access to the account for online trading. For a corporation, the mandate must be accompanied by a board resolution giving the said person authority to trade on the account.


49. Where can I get assistance regarding my iTrader account? - 

For assistance, kindly contact the iTrader customer care team on itrader@stanbic.com. 


Sharesocialicons

Transact Online

Select your online banking platform:

Customer care

SBGSecurities
+254 20 363 8080

International
+254 20 363 8942

FAX
+254 20 310053

Email

Send us an email

Web Address
sbgs@stanbic.com