Share Certificates: No Cause For Alarm

Hello Friends,

Late last year, rumours were rife that Security Exchange Commission (SEC) has fixed 31st December, 2008 as the deadline for verification of share certificates. The rumours were even published in some newspapers and magazines and this threw the investing public into confusion as many investors have heaps of share certificates under their pillows or in their cupboards and are yet to verify them.  The 31st December deadline for share certificates verification was later refuted by SEC and this brought some relief to investors. 

If you are one of those investors who have not verified their share certificates, if you don’t know then know it now that you are doing yourself a lot of harm. Your share certificate should not be in your house, it should be with CSCS. Central Securities Clearing System (CSCS) is the place your share certificates are verified and kept for save keeping. Your shares are turned to eShares or eStocks which can be traded electronically.

Benefits of verifying your share certificates

•   You can sell your shares anytime you want. Unverified share certificates can not be sold.
•   You can take immediate advantage of price gains on the stock exchange. With unverified certificates, you can not take advantage of price gains because it will take some days before your share certificates are verified and prices may have fallen by then.
•   Your share certificates can be eaten by rats and cockroaches in your cupboards or boxes, such can not happen with verified certificates.
•   Verifying your share certificates will safeguard them against natural disasters like fire and flood.
•   Verifying your share certificates will prevent them from being stolen and will also protect you against forgery.

Remain Blessed.