The CSD & Registry Company Limited (CSDR) is a private limited Company approved by the Capital Markets and Securities Authority (CMSA) to conduct the Central Securities Depository business in Tanzania. The CSDR provides automated clearing, delivery and settlement facilities in respect of transactions carried out at the Dar es salaam Stock Exchange PLC (DSE) as well as holding of listed and non-listed securities.
The CSD & Registry Company Limited (CSDR) was incorporated on 17th January 2017 and became operational on 1st October 2017 following the approval and licensing by the Capital Markets and Securities Authority (CMSA) on 18th September 2017.
The establishment of the CSDR is in compliance with the International Organization of Securities Commission (IOSCO) Principles and International Best Practices for Securities Markets. The CSDR is currently whole owned by Dar es salaam Stock Exchange PLC (DSE).
The CSDR provides its services through an online computer system with CSD Members (Depository Participants) having direct online access to the system. Equity trades settle on a rolling T+3 settlement cycle on a Delivery versus Payment (DVP) basis. Final transfer of funds between Settlement Banks occurs through Central Bank money.
The CSDR provides Registry Services to listed and non-listed companies subscribed to the service. The Registry Services covers a full range of registry functions including security transfers, maintenance of ownership records, administration of shareholders registers, processing of corporate actions such as dividend payments, bonus, right issue and other related services.
Before incorporation of the CSDR, the DSE was participating in the Depository Information Gathering Project of the Association of Global Custodians (AGC) on a regular basis. The CSDR will continue to participate in this project. The objective of the project is to assist members of the AGC in meeting their regulatory obligations under the U.S Investment Company Act Rule 17f-7 which sets forth the circumstances under which U.S investment companies may hold securities through the facilities of non-U.S. securities depositories.
The CSDR is also covered by the Thomas Murray Capital Market Infrastructure Risk Ratings Service. The ratings service of Thomas Murray provides an independent, objective analysis of local post trade capital market controls and procedures. It examines the extent to which an infrastructure minimizes recognized risks and maximizes asset safety for investment.
Internal auditors perform operational audits on quarterly basis while External Auditors performs both financial and operational audits of the CSDR annually.