A security is a negotiable financial instrument that is of monetary value. It represents holding in a corporation in case of shares ownership or creditor relationship for the case bonds in a Government or Corporate Body.
The CSD, which stands for Central Securities Depository, is an electronic system that facilitates deposit of investor’s security holdings after a company’s issuance of securities through an Initial Public Offer (IPO), Right issue or Bonus issue. The CSD also manages the process of electronic transfer of securities traded at the Dar es Salaam Stock Exchange.
The CSD and Registry Company Limited (CSDR) provides “Registry services” to companies that have subscribed for the service. The CSDR maintains shareholder’s/ bondholder’s registers after the company’s initial public offer. The CSDR manages dividends/ interest payments as well as claims from shareholders/ bondholders.