The Effect Of Central Securities Clearing System(CSCS) On The Nigeria Capital Market

The Effect Of Central Securities Clearing System(cscs) On The Nigeria Capital Market

Chapter One

Background Of Study

Statement Of Problem

One of the functions of the Central Securities Clearing System is instrument dematerialization but utmost investors aren’t apprehensive of the operations of the CSCS nor of the installation as they prefer to keep the paper instrument. From January 1, 2009, investors shares were being lodged directly online with the CSCS. Prior to this new directive, the following problems were observed before the preface of CSCS-

Cancellation and frequent allocation andre-issuance of share instrument when shares changed hands.

Constant hand verification

Capital earnings not exploited

Delay in the damage of share instrument

Loss of investors ’ confidence in the trading conditioning on the capital request

Materialization of share instrument.

With the preface of the CSCS robotization of the operations of conditioning on the Nigerian Capital Market also took place with IT invention. Before now, there was a problem of-

Stockholders trading on investors stock without the concurrence of the investors

Lack of public mindfulness of the operations of CSCS

Non-automated system.

Objects Of The Study

The exploration study is accepted with a view of achieving the following ideal. Which are-

To ascertain the effect of Central Securities Clearing System on the Nigerian capital request

To assess the effect of Central Securities Clearing System on investors ’ confidence in the trading conditioning on the Nigerian capital request

To identify the effect that the share instrument dematerialization will have on the performance of trading conditioning on the Nigerian capital request.

Exploration Questions

For a better expression of suppositions, he following exploration questions was drawn

Does Central Securities Clearing System have effect on the Nigerian capital request?

Can Central Securities Clearing System have effect on investors ’ confidence in the trading conditioning on the Nigerian capital request?

What are the goods of share instrument dematerialization have on the performance of trading conditioning on the Nigerian Capital Market?

Exploration Thesis

In performance of this study, three null suppositions and their volition will be set out

thesis one

H0 CSCS have negative effect on the Nigerian Capital request

H1 CSCS have positive effect on the Nigerian Capital Market

Hypothesis two

H0 CSCS have negative effect on investors ’ confidence in the trading conditioning on the Nigerian Capital request

H1 CSCS have positive effect on investors ’ confidence in the trading conditioning on the Nigerian Capital Market

Hypothesis three

H0 CSCS share instrument dematerializations have negative effect on the performance of trading conditioning on the Nigeria capital request

H1 CSCS share instrument dematerializations have positive effect on the performance of trading conditioning on the Nigeria capital request

Compass Of The Study

The compass of the study shall cover the clearing and agreement system in the Nigerian stock exchange Onitsha, the conditioning of the Central Securities Clearing System, its establishment, benefits and problems from commencement. It shall also cover how the Central Securities Clearing System can ameliorate the deals in the Nigerian Capital Market. The place of the study is Asaba Metropolis and it involves seventeen times( 21) of assessment. Secondary data will be used; data numbers and other applicable statistic shall be attained from the Nigerian Stock Exchange Onitsha, journals Journals, electronic media, fact book and related books.

Significance Of The Study

The significance of the study is towards creating a positive mindfulness amongst investors, stockbrokers and capital request drivers about the operations of the Central Securities Clearing System and its effect on the performance of trading conditioning on the performance of trading conditioning on the Nigerian Capital Market.

It’ll affect to further prompt and accurate clearing agreement, delivery and custodian system in the Nigerian Stock Exchange brings about the effective service delivery of stockbrokers and investors confidence in the Central Securities Clearing System operations. Also it’ll bring about increase in knowledge to the academic society, it’ll enable farther experimenter to acquire further knowledge and exploration of its.

Limitations Of The Study