THE EFFECT OF CENTRAL SECURITIES CLEARING SYSTEM(CSCS) ON THE NIGERIAN CAPITAL MARKET

THE EFFECT OF CENTRAL SECURITIES CLEARING SYSTEM(CSCS) ON THE NIGERIAN CAPITAL MARKET (ECONOMICS PROJECT TOPICS AND MATERIALS)

CHAPTER ONE

1.1 BACKGROUND OF STUDY

1.2 STATEMENT OF PROBLEM

One of the functions of the Central Securities Clearing System is certificate dematerialization but most investors are not aware of the operations of the CSCS nor of the facility as they prefer to keep the paper certificate. From January 1, 2009, investors shares were being lodged directly online with the CSCS. Prior to this new directive, the following problems were observed before the introduction of CSCS:-

1. Cancellation and frequent issuance and re-issuance of share certificate when shares changed hands.
2. Constant signature verification
3. Capital gains not exploited
4. Delay in the receipt of share certificate
5. Loss of investors’ confidence in the trading activities on the capital market
6. Materialization of share certificate.

With the introduction of the CSCS automation of the operations of activities on the Nigerian Capital Market also took place with IT innovation. Before now, there was a problem of:-

1. Stockholders trading on investors stock without the consent of the investors
2. Lack of public awareness of the operations of CSCS
3. Non-automated system.

1.3       OBJECTIVES OF THE STUDY
The research study is undertaken with a view of achieving the following objective. Which are:-

For a better formulation of hypotheses, he following research questions was drawn: