Building the Foundation of Somalia’s Capital Markets
Central Securities Depository • Clearing • Settlement • Custody
Secure, Regulated and Auditable Securities Infrastructure
Supporting the Somali Stock Exchange and Market Participants
100%
Secure Custody
Role of the Central Securities Depository (CSD) in the Somali Capital Market
The Central Securities Depository (CSD) is the official depository in Somalia. It operates under the oversight of the Ministry of Commerce and Trade of Somalia. With authorization from the Central Bank of Somalia, the CSD is mandated to provide clearing, settlement, and registration services for securities issued by companies listed on the Somali Stock Exchange.
The CSD’s mandate includes the custody of equities and other financial securities, as well as the operation of a centralized depository system that replaces physical certificates with secure electronic records, thereby enhancing efficiency, transparency, and market integrity.
Core functions include:
Dematerialization & Settlement
Understanding how the Central Securities Depository operates to provide convenient stock certificate registration and secure electronic settlement.
Open Depository Account
Investors open a depository account through a CSD Member/Participant/Agent to participate in the primary market via IPO or the SSE PLC.
Dematerialization
Certificated securities are converted to electronic form through CSD Members. All issuers are maintained in dematerialized form within the CSD system.
Account Maintenance
CSD Members maintain accounts on behalf of investors. Account holders can amend details such as address, names, telephone numbers, or bank details.
Settlement (T+1 / T+3)
Bond transactions settle at T+1, while other securities transactions settle at T+3 using the DVP (Delivery versus Payment) model through settlement banks.
For information on clearing, settlement, and custodial services, please visit the list of
Nominated Advisors certified by the Somali Stock Exchange.Comprehensive Central Securities Depository (CSD) Services
Our suite of services designed to support the Somali capital markets, transforming markets to dematerialized systems for maximum investor efficiency.
Registry Services
The CSD acts as registrar for companies issuing official securities through IPOs, rights issues, bonus shares, bonds, or treasury bills in the financial market.
Clearing & Settlement
DVP (Delivery versus Payment) mechanism supporting electronic crediting and debiting for SSE transactions. Bond transactions settled at T+1, other securities at T+3.
Depository Services
Conversion of certificated securities to electronic form through CSD Members/Depository Participants. All securities are maintained in dematerialized form for maximum efficiency.
Account Services
Depository accounts are required for participation in the primary market through IPO or SSE PLC, opened through CSD Members/Participants/Agents.
Corporate Actions
Processing of rights attached to securities, ensuring suitable sequences and actions leading to final corporate action completion.
Dividend Processing
Managing dividend notifications and payments on behalf of issuers, ensuring accurate and timely disbursement to registered shareholders.
Clearing & Settlement System
The CSD supports electronic crediting and debiting for DVP stocks on the SSE, involving securities deals entered into the CSD system and circulated funds through settlement banks.
Transfer of Securities
The CSD enables transfer of securities from one investor's account to another in cases of death, bankruptcy, or other operations as classified by law.
DVP Settlement Model
Delivery versus Payment (DVP) Model 2 is used for trade transfers, with gross transaction and net transaction settlement through settlement banks.
Settlement Bank Integration
All CSD participants must have an account at a settlement bank. Custodian Banks serve as Settlement Banks responsible for transaction delivery.
Efficient Processing
Bilateral netting amongst banks for prompt interbank payments. The CSD system minimizes intervention and enables easy settling and transfer of securities.
Laws & Regulations
Operating under the regulatory framework established for capital markets in Somalia.
Registrar Responsibility
As Registrar, CSD delivers accurate and immutable lists of registered security owners before Books Closure and Register Closing dates.
Central Bank Authorization
Authorized by the Central Bank of Somalia to provide depository services.
Ministry Registration
Incorporated and registered as a limited liability company by the Ministry of Commerce & Industry.
Regulatory
Framework
The Central Securities Depository operates under the laws and regulations established for capital markets in Somalia, ensuring compliance and protection for all market participants.
As the official registrar, CSD maintains responsibility for dividend disbursement to shareholders and provides accurate, immutable records of security ownership.
Get in Touch
Have questions about CSD Somalia? We're here to help. Reach out to our team for more information.