Depository Services

Account Opening

Any investor who wants to buy securities or deal in securities in Ghana is required to open a securities account with the Depository through any of the Depository Participants admitted by CSD. Individual Investors, Corporate Investors and Foreign Investors can open securities accounts with the Depository through any of the Depository Participants admitted by CSD.


 

Auction

The Depository manages the Auction System owned by Bank of Ghana. Auctions for government securities (bills and notes) are set up on Fridays and made available to all Primary Dealers (PDs) on the Auction Terminal for the input of bids between 8.30am to 1.00 pm same day. If a particular Friday is a public holiday, the Auction is held on the preceding business day. The auction is normally held on Fridays, between 3:00 p.m. – 4.00 p.m.by the Auction Committee at Bank of Ghana and the auction result is subsequently announced. Auction for government bonds are set up between 8.00am to 2.00p.m. and the days for government bond auctions are based on the government issuance calendar. The Auction is processed electronically using either the cut off rate or the amount government is borrowing. With these criteria indicated the system automatically allots the winning bids and the cost of these bids.


 

Corporate Actions

The Depository processes interest and maturity payments for debt securities issued by Government of Ghana, Bank of Ghana, Cocobod and Barclays Bank of Ghana's Negotiable Certificate of Deposits (NCDs). Other corporate action activities performed by the Depository include Bonus Issue, Right Issue, etc.


 

Pledging of Securities

The Depository system has a platform which allows investors to pledge their securities as collateral to secure loan facilities from any financial institution or lender with an account in the CSD. Once the securities are pledged, they are encumbered (blocked) from any further transactions. However the lender will have full ownership of the pledged securities where the borrower defaults through a foreclosure process.


 

Repurchase Agreement (Repo)

Repurchase agreements are financial transactions that involve the sale of a security with an inherent mutual agreement to repurchase the same security at a future date at an agreed price.

The purpose of a repurchase agreement is to support financial institutions to manage their liquidity and reserve requirements as demanded by Bank of Ghana using debt securities. Under the repurchase agreement both securities and funds settlement are executed on real time basis.


 

Securities Transfer Services

Investors owning securities are allowed to transfer their securities (debt & equities) from one account to another account. Transfer of securities is allowed under the following conditions.

  1. A client may transfer securities held through one DP to another DP where there is no change in beneficial ownership. An investor may have more than one account with the same or different participants. In this instance, the investor may transfer securities from one participant to another without executing a trade. This request may be executed by the CSD through the relevant Participants.
  2. When securities are being transferred as a result of inheritance, the CSD will require the appropriate legal documentation specifying the beneficiary of the said securities. This may include Letters of Administration or Probate with the will annexed.
  3. When the transfer is as a result of a gift or a donation, the requisite gift tax clearance certificate would be required before the transfer would be executed by the CSD.

 

Trade Reporting

The CSD System has a trade reporting platform for OTC or pre-negotiated trades undertaken in the secondary market. The trade reporting platform is to facilitate smooth change of ownership of securities when transactions are concluded. The CSD trade reporting platform is opened from Monday to Friday excluding public holidays from 8.30 am to 4.00pm each day. Trade reporting for all custodian clients ends at 3.30pm. This is to allow the custodians to reconcile their reported trades prior to settlement at 4.00pm. All Depository Participants are required to report trades to the CSD within a period not exceeding 30 minutes upon conclusion of deals for clearing and settlement. For secondary market trades involving equities, transactions are carried out through the GSE Automated Trading System.