I have some shares I bought some ten years ago, please how do I dispose of it?

We've had a second client ask this, so we decided to address it.

Many of us own shares, but don't know how to sell it. The feel that you own that amount of shares is good, but there are times you might have the need to sell and move the money into another investment, such as landed property. What do you do? Many don't know.

In this post, we shall put you through the process.

Sometime 2016, the Nigerian stock market engaged in a shift on shares sales procedure. Prior to this time, Shareholders of public companies sold their shares via the share certificates issued to them. However since the dematerialization, the process is no longer the same.

For the process of dematerialization, you are expected to follow these steps.

*Open a stockbroking account with a stock brocking firm by filling out the account opening form with a copy of your utility bill (not older than 3months) and valid means of ID.

*These details will be used to open a CSCS account which is the electronic depository account for shares (CSCS means Central Securities Clearing System).

*You will be required to fill dematerialization forms and submit your original share certificate.

*These dematerialization forms and certificate will be submitted to the appropriate registrar to process and credit stock value in your CSCS account.


To open an account with a stock brocking firm, some firms require that you must be willing to buy minimum of N200,000 worth of shares or have shares already, that worth that amount.

If all you have is the share certificate, for you to sell you need to go through the process of dematerialization without which you can't sell.


How long does this process take?

An average of 6weeks all things being equal if you remember your signature, the one you used in the purchase and there's no issue with that. It could be less than 6weeks and it could be more but an average of 6weeks.

What happens after you've done the dematerialization?

Once you have done the dematerialization and it reflects in your CSCS account, you can send the stock brocking firm a mandate via email to sell shares for you and credit your account with the proceed. Once it is sold, it takes 3days after sale + the date of transaction for the money to be credited in your bank account. It's that simple.


Oh Lord, I've lost my share certificate, what do I do?

The stockbroking firm you contact can do a global search for you in your name and the address you must have used in the purchase of the shares, it will bring out your details of shares with the registrar's. Sometimes it doesn't but often times it does. If it doesn't and you are sure you have shares with that company, the stockbroking firm can still work around it to get the information.


Usually lawyers aren't deeply involved in this process, however, they are more involved where the application is done for a deceased person. That is an estate account.


In such situation, a lawyer would have to confirm the letter of administration.

Now you can sell your shares, you can also buy Dangote Cement PLC shares, MTN, Gtbank, Mobil etc shares.



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