Frequently Asked Questions
1. How do I open a stockbroking account?
2. How long does it take for my certificates to get verified?
3. How do I deposit my certificates and what happens after?
4. Why do I need to transfer my stocks from one stockbroking firm to another?
5. What are the required documents for the transfer of stocks/portfolios?
6. What does it entail to transfer my stocks/portfolio from a moribund stockbroking firm?
7. What are the charges when buying or selling stocks?
8. Why do I need a Banker’s Confirmation Letter (‘BCL’)?
9. Why do I need to write to the Registrar for my own missing certificates and not CICL?
10. What should I do if I need to change my address?
11. Can I have my dividend paid directly into my bank account?
12. I have not received my dividend. What should I do?
13. My dividend warrant is out of date and is now invalid. What should I do?
14. I have found an old uncashed dividend warrant. What can I do?
15. I have not received my Share Certificate. What should I do?
16. What should I do if I cannot find my share certificate?
17. What should I do if I have changed my name?
18. Some of the companies I invested in have been delisted from the floor of the Stock Exchange. What do I do?
1. How do I open a stockbroking account?
You will be required to complete our account opening forms ( download here) which must be accompanied with all the required 'Know Your Client' (KYC) documents which include your recent passport photograph (see account opening requirements for other details) for the processing of your account opening with Citi Investment Capital Limited (‘CICL’) and the Central Securities Clearing System (‘CSCS’)/Nigerian Stock Exchange (‘NSE’). You will receive an SMS alert indicating your account opening status as soon as it is completed.
2. How long does it take for my certificates to get verified?
Once all the documents required for verification are provided, your certificates will be verified within two weeks of submission with your stockbroker. Certificates may sometimes take longer to verify depending on the degree of Compliance with different Registrar’s verification requirements.
3. How do I deposit my certificates and what happens after?
You can only get your share certificates verified through a stockbroking firm. You have to take your certificates to a stockbroking firm where you will fill in/sign forms including the Stocks Transfer Form and the KYC Form. They will process the certificate(s) and take them to the Registrar, who will verify them and then send information to the CSCS about the verification. The CSCS will complete the transaction and credit your CSCS Account accordingly.
4. Why do I need to transfer my stocks from one stockbroking firm to another?
Clients transfer their stocks/portfolio because of unsatisfactory services of their former stockbroking firms or to consolidate the stocks they have in other stock-broking firms into one stockbroking firm for easy monitoring and management. The process of transfer of stocks/portfolio from one stockbroking firm to another is known as inter-member transfer. This does not attract any fees.
5. What are the required documents for the transfer of stocks/portfolios?
The documents involved in the transfer process include the following:
- A letter from the client authorizing the resident stockbroking firm to sign out the client and release his/her current CSCS statement.
- A letter from the client to the NSE authorizing the organization to transfer the client’s stocks to the stockbroking firm of their choice.
- Inter-member transfer form signed by the client.
6. What does it entail to transfer my stocks/portfolio from a moribund stockbroking firm?
You are advised to write a letter of indemnity which should be addressed to the Managing Director of his/her new stockbroking firm and come along with CCS statement (either current or stale) previously collected from the old house where business was transacted. This service attracts a fixed charge of Two Thousand, Five Hundred Naira (₦2500) only.
7. What are the charges when buying or selling stocks?
| Costs related to ‘BUY’ transactions: | Value |
| CSCS Fee | 0.06% + 5% VAT |
| Contract Stamp Duties | 0.075% |
| SEC Fee | 0.3% |
| *Brokerage Commission | 1.35% + 5% VAT |
| Total | 1.855% |
| *Citi Investment Capital Ltd’s commission on transactions | |
| Costs related to ‘SELL’ transactions: | Value |
| CSCS Fee | 0.36% + 5% VAT |
| Contract Stamp Duties | 0.075% |
| NSE Fee | 0.3% + 5% VAT |
| *Brokerage Commission | 1.35% + 5% VAT |
| Total | 2.185% |
| *Citi Investment Capital Ltd’s commission on transactions | |
8. Why do I need a Banker’s Confirmation Letter (‘BCL’)?
BCL is needed when the Registrar cannot verify a client’s signature on the Transfer Form sent to them with the sample they have stored in their database. BCL will also be needed if the Registrar does not have a sample signature for the client.
With a BCL your bank is confirming to the Registrar that they know you and that you have an active account with them. They are also confirming to the Registrar that the sample signature you have signed on the BCL is indeed your true signature.
9. Why do I need to write to the Registrar for my own missing certificates and not CICL?
When making any request to the Registrar for missing certificates, you are doing it through CICL and your letter should be addressed to the Registrar directly, but submitted to CICL for processing. CICL will then write a cover letter and take the documents to the Registrar on your behalf. We will follow up with the Registrar and update you with the outcome as soon as we have feedback.
10. What should I do if I need to change my address?
You should notify the Registrar and the CSCS in writing of both your old and new address and, if possible, your share account number. Your stockbroker can also facilitate this process on being notified in writing of this development.
11. Can I have my dividend paid directly into my bank account?
Yes. You should either contact the Registrar, your stockbroker or complete an e-dividend mandate form obtainable from the Registrar’ office or from your stockbroker after which you will send this to your bank for endorsement. Be advised that dividends are in most cases paid into a current account.
12. I have not received my dividend. What should I do?
Please contact the Registrar or Stockbroker immediately either in writing or in person.
13. My dividend warrant is out of date and is now invalid. What should I do?
Please contact the Registrar or Stockbrokers to have it revalidated. Please note that dividend warrants are valid for six months from the date of issue.
14. I have found an old uncashed dividend warrant. What can I do?
Dividend warrants are currently valid for six months from the month of payment. After this time you should return any uncashed warrant to the Registrar for revalidation.
15. I have not received my Share Certificate. What should I do?
Please contact the Registrar in writing. Perhaps the share certificate has been returned unclaimed.
16. What should I do if I cannot find my share certificate?
If a share certificate is lost, stolen or destroyed, notify the Registrar immediately so that a “caution” can be placed on their records to prevent transfer of ownership to another person. In order to replace your certificate(s), the following are required:
- You need an indemnity form, at your expense, to protect all parties against the possibility that the lost certificate might return to circulation. You will also need to arrange for a further guarantee by a clearing bank or a recognized insurance company.
- Also, you are expected to obtain a sworn affidavit confirming the loss of the certificate.
17. What should I do if I have changed my name?
Provide the Registrar with the following documents:
- Photocopy of Marriage Certificate and original for sighting.
- Original Sworn Affidavit in case of change of family name.
- Original Bankers’ Confirmation of signature, bearing the passport photograph of the Shareholder and duly endorsed by the Bank (where necessary to change signature).
18. Some of the companies I invested in have been delisted from the floor of the Stock Exchange. What do I do?
Please contact your Stockbroker or Registrar for necessary assistance.
