Rédaction Africa Links 24 with Shania Lazarus
Published on 2024-03-16 14:29:28
The Namibia Financial Institutions Supervisory Authority (Namfisa) has given the green light for the establishment of the Central Securities Depository (CSD) Limited. This development is set to transform trading activities in Namibia by introducing a centralised platform for the safekeeping and settlement of securities.
According to Namfisa spokesperson Victoria Raimond, the introduction of the CSD marks a significant milestone for Namibia’s capital market industry. The Central Securities Depository Limited, a joint venture between the Bank of Namibia and the Namibian Stock Exchange, will play a crucial role in securely holding, safekeeping, and settling securities such as shares, bonds, and other financial instruments in electronic form. This move aligns with global trends towards digitisation in financial markets, promising improved efficiency and transparency.
Raimond explains that the approval of the Central Securities Depository Limited falls under the regulatory framework outlined in the ‘Determination of Conditions Relating to a Central Securities Depository’, in compliance with the Stock Exchanges Control Act of 1985. The regulatory oversight aims to maintain adherence to rigorous standards, protecting investor interests and market integrity.
Furthermore, this upgrade in infrastructure aims to boost market participation, promote liquidity, and ultimately build confidence among investors. With the capital market industry in Namibia valued at N$251 billion, the full implementation of the Central Securities Depository Limited has the potential to elevate the country’s financial ecosystem. By enabling seamless digital transactions and replacing paper-based securities with secure digital records, the CSD is poised to drive innovation and strengthen the overall stability of Namibia’s financial system.
The establishment of the CSD Limited is a vital step towards modernising Namibia’s financial market infrastructure, bringing it in line with global standards. This move not only enhances the efficiency and transparency of trading activities but also solidifies investor confidence in the country’s financial system. With the support of regulatory oversight and adherence to stringent standards, the Central Securities Depository Limited is set to revolutionise how securities are held, safekept, and settled in Namibia.
In conclusion, the approval of the Central Securities Depository Limited signifies a significant advancement for the Namibian capital market industry. With the potential to drive innovation, improve efficiency, and enhance market integrity, the CSD Limited is set to play a central role in shaping the future of Namibia’s financial ecosystem. Investors and market participants can look forward to a more secure, transparent, and efficient trading environment with the introduction of the CSD in Namibia.
Read the original article on The Namibian
