DEMATERIALISATION OF SECURITIES

Dear Esteemed Client, In the past few days, The Nigerian Stock Exchange (NSE) has been engaging the stockbroking community about an impending implementation of the full dematerialisation of share certificates in the system. Dematerialisation simply means the process by which physical share certificates will be replaced by electronic shares held in the Central Securities Clearing System (CSCS) depository. This is a project that started in 2003 with the automation of the trading system with a view to make the whole process of shares trading transaction and settlement to be electronic. The Dematerialisation has several advantages including; It enhances the liquidity of the market; It enhances the use of shares as security for loan access; It is safer as share certificates can get lost or damaged accidentally; It is secure as shareholders will have unique IDs with their chosen and trusted stockbrokers. The NSE and CSCS hope to kick off the process of full dematerialisation in July, having engaged the Registrars of the companies and other stake holders in the capital market. The process will involve creation of a temporary account in the CSCS for shareholders who are still holding physical certificates and crediting the shares into these temporary accounts. Thereafter, shareholders will be contacted by the Registrars, through their listed contact details to inform them about their account details with the CSCS. Shareholders are expected to appoint their preferred stockbroker to open a permanent account for the migration of the shares, after verification of their signatures with the appropriate Registrar. The implication of this is that by the end of July 2015, all share certificates of quoted companies will be rendered void in the hands of the holders, who will only have access to electronic shares after following the agreed process. The process is currently being fine-tuned with contributions from various stakeholders, but we expect this to kick off very soon with the closure of the window for e-lodgment. We will like to encourage shareholders who are currently still holding on to certificates to contact the Registrars to update their addresses and contact details in order to be able to receive information/notification when their temporary account is created with CSCS. We will keep you updated with developments as soon as we have new information on the dematerialization process. Alternatively however, you may wish to take advantage of the opportunity in the next few weeks to lodge your shares certificates for verification and dematerialisation before the e-lodgement window closes. Kindly contact the undersigned for further information on how to go about this: Teslim teslim.sadiq@woodlandcapitalplc.com Tunde tunde.makinde@woodlandcapitalplc.com Bisi bisi.ogunsola@woodlandcapitalplc.com Or contact us through our telephone lines - 01-2778826 and 01-2778827 for more enquiries.