What is share demobilisation?

Dear Post,

Please educate me; what is demobilising of share certificates? Thanks.

Biodun, 08057756456.

 

Dear Biodun,

Share certificate demobilisation refers to the process in which share certificates are captured in the depository of the Central Securities Clearing System (CSCS) Limited, which is the clearing house for all publicly quoted share transactions in the country. It simply means that the CSCS now has records of the investor’s shareholdings in its system and can now render monthly stock positions to the investor. The stockbroker is the agent that assists you on getting your share certificate demobilised. The advantages of demobilisation are many and include the fact that you no longer need the physical possession of your share certificate and therefore cannot suffer from loss of or damage to the certificates; you can easily use your CSCS stock position reports to obtain loans, which you cannot do with your share certificate; you can sell you holdings much faster and can benefit from e-lodgements.