Namibia Financial Institutions Supervisory Authority (NAMFISA) has announced the groundbreaking approval of Central Securities Depository Limited as a central securities depository (CSD) in Namibia, with the aim to centrally hold, safely keep and settle securities such as shares, bonds, and other financial instruments in electronic form.
The Central Securities Depository Limited is jointly owned by the Bank of Namibia and the Namibia Stock Exchange.
The approval of Central Securities Depository Limited was made on 8 March 2024 and is in terms of paragraph 5 of the Determination of Conditions relating to a Central Securities Depository issued in terms of the Stock Exchanges Control Act No. 1 of 1985 (“the Conditions”).
“A CSD enhances efficient trading by offering a centralized platform for safekeeping and settlement, thereby encouraging market participation and fostering market liquidity,” said Mr Keneth Matomola, NAMFISA’s chief executive officer.
“This liquidity, in turn, boosts market confidence and attracts additional investment.
“NAMFISA awaits the full implementation of Central Securities Depository Ltd, who will act as an integral market player of the capital market industry (valued at N$251 billion) to attract international investors to trade in domestic securities and foster digital innovation as ownership of paper-based securities are replaced with secure digital records and enhance the overall stability of our financial system.”
In the photo: NAMFISA’s CEO Keneth Matomola
