A Stock Exchange provides a market which facilitates the buying and selling of shares of quoted companies.

SEC is the apex regulatory institution of the Nigerian capital market with the basic objectives of investor protection and capital market development towards enhanced socio-economic growth and development.

The primary market is the market for new or fresh issue of shares to the investing public.

The secondary market is the market for shares that are already listed in the exchange and are held by shareholders.

Shares, stocks, equities or ordinary shares are all synonymous definitions of shares of a company. When you buy shares of a company, you become a part owner of that company proportionate to the amount of money you invested.

Dividend is a proportion of profit paid to the shareholders. Dividend is not a fixed amount but it varies from company to company and from year to year.

This is the issuance of shares by a company to its shareholders in proportion to their existing holdings.

The Central Securities Clearing System (CSCS) functions include:

• Depository for certificates of companies quoted on the stock exchange.
• Issuer of central securities identification numbers to stockbrokers and investors.
• Clearing and settlement of transactions.
• Safekeeping / Custodian

Settlement cycle for transactions with regards to buy/sale, i.e., Trade date plus three working days.

Dematerialization refers to the process of converting the physical share certificate, after it’s verification by the listed company’s Registrar’s, into an electronic record kept by the CSCS.

Dematerialization can take anything from 1 week to a month depending on the Registrar or issues that may arise from the dematerialization process.

Irregular signature, different signature(s), incomplete banker’s confirmation, incorrect details on certificate or covering documents.

• Complete and sign account opening forms
• Provide Know Your Customer (KYC) documentations i.e. Two passport, means of Identification, utility bill
• N250,000.00 or its equivalent in stock.

• Click on "Open An Account" here or on bottom menu on our web site.
• Fill and complete the online form.
• A sales representative will contact you by phone and email.

As a shareholder you are entitled to:

• The right to attend Annual General Meetings
• Dividends
• Bonuses
• Rights Offer to acquire more shares

Once all documents required for verification are provided, your certificates could be verified within two weeks of submission with your stock broker. Certificates may sometimes take longer to verify. Please ask your stock broker for requirements for certificate verification.

You can only get your share certificates verified through a stock broking firm. You have to take your certificates to a stock broking firm where you will fill in/sign forms including the Transfer Form and the Know Your Client (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.

BGL Securities Limited is well equipped and prepared to give you services that will meet and exceed your investment needs. Having taken the time to understand investors’ needs, we have built strong relationships, and would be pleased to bring our extensive experience to bear in your transactions with us. One of the most reliable stock broking firms in Nigeria, BGL Securities Limited parades excellent professionals with proven skills and integrity, and will verify your certificates within the shortest possible time as well as carry out your sale and purchase mandates as promptly as possible. Our Account Opening process is straight forward and our Relationship Officers are always available to give you needed support and assistance. In addition, BGL possesses strong research capabilities in the areas of Economic Research, Equity Research and Fixed Income Research, providing excellent coverage of the Nigerian Capital Market.

A: Cost relating to ‘BUY’ Transactions:

CSCS Fee	0.06% of Consideration
VAT on CSCS	0.003% on CSCS Fee
Stamp Duties	0.075% of Consideration
SEC Fee	0.3% of Consideration
Brokerage Commission	1.35% of Consideration
TOTAL	1.788%

 

B: Cost relating to ‘SELL’ Transactions:

CSCS Fee	0.36% of Consideration
VAT on CSCS	0.18% on CSCS Fee
Stamp Duties	0.075% of Consideration
NSE Fee	0.3% of Consideration
VAT on NSE	0.02% on NSE Fee
Brokerage Commission	1.35% of Consideration
TOTAL	2.123%

 

Private Placements and Public Offers are different types of investments and one’s attractiveness over the other will depend on the investment needs of the prospective investor.

 

Private Placement When capital is raised via a Private Placement, securities are sold to a relatively small number of investors.

 

Investors in Private Placements are usually large banks, mutual funds, insurance companies, and High Net-worth Individuals. Since Private Placements are not offered to the public at large, registration requirements with the Securities and Exchange Commission vary from those for Public Offers. In many cases detailed financial information is not disclosed and the need for a prospectus is waived.

 

Public Offer is the sale of equity shares or other financial instruments by an organisation to the public in order to raise funds for business expansion and investment. Public offerings of corporate securities in Nigeria must be registered with and approved by the SEC and are normally conducted by an investment underwriter. The offer price is predetermined and established by the issuing company, issuing house(s) and the investment banks handling the transaction. The term public offering is applicable to a company's initial public offering, as well as subsequent offerings.

Cross Deals Transactions involve trading on the floor on the Nigerian Stock Exchange and any transaction done on the floor of the NSE attracts charges.

Opening an account with BGL comes with lots of benefits. You will have the privilege of having your account managed by the best professionals in the Industry; you will enjoy the premium and excellent services we are well known for; you will enjoy quality research information regularly; you will be able to subscribe to our daily and weekly reports. The benefits are endless actually!

Banker’s Confirmation 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. Banker’s Confirmation will also be needed if the Registrar does not have a sample signature for the client.

 

With a Banker’s Confirmation, 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 Banker’s Confirmation is indeed your true signature.

 

When making any request to the Registrars for missing certificates, you are doing it through BGL and your letter should be addressed to the Registrar directly, but submitted to BGL for processing. BGL will then write a cover letter and take the documents to the Registrars on your behalf. We will follow up with the Registrars and update you with the outcome as soon as we have feedback.

Please send a mail to customercare@bglltd.com & dematerialization@bglltd.com with your full names, the name of the stock and number of units, date submitted and we shall get back to you as soon as possible.

Kindly send the physical dividend warrant to our address (Head Customer Care, BGL Securities Ltd, 20 Catholic Mission Street, Lagos. P.O. Box 74122, Victoria Island, Lagos) together with a signed letter addressed to the Registrars, authorizing BGL to revalidate the warrant on your behalf.

Please send a physical mandate to us addressed to the Registrars, authorizing BGL to collect any oustanding dividend warrant or certificate on your behalf (This applies to Clients of BGL).

Please send us your details, name of the stock, and an evidence of payment/submission to BGL

Please do us a mail stating all the details and we shall advise you accordingly.

Click on Customer Care menu and get on CSCS Account Opening

See List of Registrars and the Stocks they handle in our customer care page.