If you have a dormant shares account, then chances are the account is frozen by today, Thursday, by the Central Depository and Settlement Corporation Ltd (CDSC). CDSC is the custodian of all shares accounts operating on the Nairobi Stock Exchange.
The accounts that are said to be frozen are those that have been inactive for the last two years. The move is meant to safeguard investors against fraud. This means the accounts will not be able to transact any business unless they are reactivated.
An investor can reactivate an account through the mobile phone application or on the web portal. Investors who employ the services of a central depository agent (CDA) will have to give a receipt, indemnity declaration, and verifiable instructions to the CDA.
The CDSC will inform holders of any account when it is declared dormant. The agency had granted a grace period of nine months to all investors with inactive accounts when the move was announced in June, 2018. In 2018, there were 16,058 new CDS accounts compared to 15,533 the previous year. There are 1.23 million investors in equities out of which 95.4 percent are local individual investors according to data from Capital Markets Authority. The Bonds market has a total of 4,409 investors.