Namibia Financial Institutions Supervisory Authority (NAMFISA) has approved Central Securities Depository Limited as a central securities depository (CSD) in Namibia, with the aim to centrally hold, safe 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 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.
“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,” the non-banking sector regulator said.
According to NAMFISA, a CSD will enhance efficient trading by offering a centralised platform for safekeeping and settlement, thereby encouraging market participation and fostering market liquidity.
“This liquidity, in turn, boosts market confidence and attracts additional investment,” NAMFISA said.
Tiaan Bazuin, Chief Executive Officer of the NSX, was appointed as interim Executive Chairman of the CSD on a part-time basis in November last year.
The primary objective of the CSD is to create a central securities depository, which will replace traditional paper certificates with electronic scripts.
The establishment of the CSD is a significant step forward for Namibia’s financial markets, aligning them with global standards and positioning them for future growth.
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