Benefits of the CSD

The establishment of the CSD is a vision embodied in Ghana's Financial Sector Strategic Plan (FINSSP) to attract Investments into the Ghanaian economy.

  1. Under the CSD system, there is total elimination of risk such as the loss, mutilation and theft of certificates associated with holding and trading of paper-based securities of investors.
  2. The CSD system ensures Delivery vs. Payment (DVP) where securities and funds are settled simultaneously. The CSD system has indeed brought a significant reduction in the errors and delays associated with paper-based manual processing and as a result brought efficiency in the clearing and settlement in the securities market. This increases market liquidity (increased activity in buying and selling of securities) because of faster transfers and registration.
  3. Investors can use their securities accounts in the same way as paper certificates as collateral for loans. It, however, saves investors the tedious procedure involved with pledging of paper share certificate for loans.
  4. The capability of investors to easily track their investments because quarterly statements will be sent to shareholders indicating the total number of shares on the stock exchange or the total face value of debt securities they own. Holders of securities can in addition request for statements at any time for a token fee.
  5. This brings afore the primary objective of the CSD, which is to reduce risk and improve efficiency.

There exists a signed agreement between the CSD and its participants for the maintenance of strict confidentiality of information and also to operate within the confines of the rules and regulations of the CSD. The CSD records are maintained in electronic format and therefore cannot be stolen or it getting lost; with an update being done concurrently as and when transactions are carried out.