Whether you are starting your stock-investing journey or building a multi-year equity portfolio, understanding how your investments are held and recorded is essential. So, what is a CSCS number, and why is it important when investing in shares in Nigeria?
What Is a CSCS Number?
The Central Securities Clearing System (CSCS) is Nigeria's central securities depository. It maintains electronic records of securities, including shares, and facilitates their safekeeping, transfer and settlement. Following the dematerialisation of securities, shares are held electronically rather than as physical certificates.
There are 2 components to the CSCS details, the CSCS number and the CHN number. The Clearing House Number commonly referred to as the CHN in a unique identifier that identifies the individual investor across the entire securities market. Investors are expected to maintain one CHN number in the Nigerian market.
The CSCS number is an account identifier linked to the individual Brokerage house.
CHN Vs CSCS number:
Think of your CHN (Clearing House Number) like your BVN. Your BVN uniquely identifies you across your bank accounts, while your CHN identifies you within the Nigerian capital market.
Your CSCS account, however, is linked to your CHN and records the securities you hold through the CSCS system. If you have accounts with different brokers, you may have different CSCS account numbers, so your holdings are not necessarily consolidated automatically.
Therefore, an investor can use the same CHN across multiple brokerage houses, but the CSCS number will be unique to each brokerage house.
How Does a CSCS Account Work?
Think of your CSCS account as an electronic record of the securities you own.
Electronic record of your holdings:
CSCS maintains electronic book-entry records of securities such as shares, bonds, Treasury Bills and unitised funds.
Shares are credited electronically:
When you purchase shares through an IPO or public offer, or buy shares in the secondary market through a registered broker or an investment platform such as i-invest, your securities are credited to your CSCS account after the transaction is completed and settled.
Secure record of ownership:
Your CSCS records provide an electronic record of your securities holdings, eliminating the risks associated with lost, damaged or forged physical certificates.
In simple terms, your CSCS account provides the electronic record of the shares and other securities held in your name and facilitates their transfer when you sell them.
Does My CSCS Account Automatically Contain All My Investments?
Not necessarily.
If you invest through different stockbrokers or have multiple accounts, your holdings may not automatically appear under one account. CSCS provides processes for reconciling and consolidating your CHN accounts where applicable.
How to Get a CSCS Number in Nigeria
CSCS states that investors open a CSCS account through a stockbroking firm. In practice, your broker facilitates the account-opening process as part of your investment onboarding.
Getting a CSCS Number Through i-invest
If you use i-invest to invest in equities, the CSCS account-opening process is integrated into the onboarding journey.
Download the i-invest app:
Get i-invest from the Apple App Store or Google Play Store and complete your registration.
Complete your KYC:
Provide the required personal information and identity documents requested during onboarding.
Account creation:
Once your registration and KYC requirements are successfully completed, your CSCS details are created by Parthian Securities Limited, a Trading License Holder and equity partner of i-invest, and linked to your investment profile, subject to the applicable onboarding and verification processes.
This means you can get started with investing without having to navigate a separate CSCS account-opening process yourself.
Note: Keep your KYC information accurate and up to date. SEC regulations require brokers to maintain updated and validated investor information, and transactions should not be effected on accounts with incomplete or unvalidated KYC information.
Participating in a Public or Private Offer?
When completing a public or private offer subscription form, you may be asked to provide your CHN/CSCS details, Stockbroker and Broker/Member Code.
If you opened your CSCS account through i-invest and need to provide your broker details when subscribing to an offer, use:
Stockbroker: Parthian Securities Limited
Broker Code: PSLC
