What is the role of Family Bank Shares Department as regards NSE stocks?
Family Bank works hand in hand with Brokers to effect NSE stocks related dealings which include:-

  • Sale of shares
  • Purchase of shares
  • Opening of accounts/Amendment of addresses, names etc
  • Immobilization of shares
  • Transfer of shares from one Broker to another
  • Transfer of shares from a deceased shareholder to the beneficiary
  • Placing of shares under lien
  • & Unfreezing of shares

Who handles shareholder related queries?
Queries related to NSE stocks owned by Family Bank customers are overseen and managed by the Shares Administrator and Shares Manager, who are available to the service of shareholders at all times.
The queries are raised through our branch network and channeled to the Head Office for action through Standard Investment Bank.

Which other corporate bodies does Family Bank work with in relation to NSE stocks?
NSE, CDSC, Image Registrars, RBA & CMA

What are the requirements of opening an account with the CDSC?
Customer to fill CDS1 form and provide a certified ID /Passport Copy & 2 Passport size photos
Opening normally takes 1(one) day.

How can a shareholder amend their already existing CDS account details?

A shareholder may want to amend the address and names in their CDS account.
In this case, they are required to fill CDS1S account and attach a certified ID /Passport Copy and documentation showing the change of names.

How can a shareholder purchase or sell shares?
To trade in shares, the following are the requirements;
Client must have an existing CDS account, if not; one is opened with the broker to facilitate the order.
For Sale, a Securities Order Form is filled and Certified ID copy attached
Share Proceed Cheques are then submitted to Head Office by the brokers for onward transmission to branches.
For purchase, the mode of payment agreed on is used and receipt attached to the order form and Certified ID copy

How can a shareholder immobilize his/her shares?
A CDS2 form is used to convert shares from certificate form to electronic form.
Client must have an existing CDS account. Client to fill in the form as instructed and append signature where required. One form is used for each security type.
The client is supposed to attach a copy of his/her ID, a copy of the CDS or broker statement, a copy of any utility bill, and a copy of any dividend notice that he/she has to the shares certificate and the CDS 2 form.
The client is then given the pink copy of the duly filled form.

How can a shareholder transfer shares from one broker to the other?
A shareholder may want to transfer shares from one broker to the other for their own reasons.
A CDS4A/B is used to transfer clients’ holdings from one Central Depository Agent (CDA) to the other. The CDS 4A is filled and signed at your current broker and the 4B at the new broker. Both applications will be forwarded to CDSC, together with a Kshs 200 payment in form of a banker’s cheque.
Alternatively, the combined form CDS 4A/4B can be filled following the same process.

How do we place shares in lien?
A CDS5 form is used to freeze (pledge) shares.
This means that you as a client will not be able to transact on those shares unless instructed by both the bank and CDA. The CDSC performs this process. The client will required to provide a letter from the bank authorizing CDSC to pledge the respective shares. He/she is also required to fill in the CDS 5 form as instructed, append signature and also have the Branch Manager of the pledging bank sign on the form too.
Once the forms are presented to the broker, along with a cover letter from the bank and a fee of Ksh 1, 000, they are forwarded to CDSC for further processing i.e. freezing of shares.
This process should take 3 or 4 days from the day the Broker dispatches the documents to the CDSC.

How do we unfreeze shares?
Shares pledged in favour may be unfrozen for the following reasons;

  • Termination of pledge
  • Foreclosure on securities pledged with CDS
  • Foreclosure on securities pledged with the Registry

A CDS6 form is used to freeze (pledge) shares.
This form is used when the bank has instructed CDSC to release the ownership of the shares back to the investor. A transaction fee of Kshs. 1000 payable to CDSC is charged. The CDSC will perform a process called unfreezing whereby the investor will now be able to transact on those shares under instructions by both the bank and CDA (broker).
The client is required to provide a letter from the bank authorizing CDSC to free the respective shares. The bank is also required to fill in the CDS6 form as instructed and also append authorized signatures and stamp. The process also takes 3 to 4 days.

Under what circumstances are shares transferred?
Shares may be transferred due to the following reasons;

  • Private transfer
  • Transmission (Estate of the Late)

This is when a client would like to transfer shares without trading. Transfers can only be made to a close relation. The CDS 7 form will be used to transfer the shares.
NB: Section 57 of the CMA Licensing requirements (general) regulations 2002 state the following as the acceptable reasons for a private transfer

  • Transfer to a close relations (as defined by law) in the form of a gift.
  • Transfer to a close relations (as defined by law) in the form of a gift.

Requirements for Private transfers
A letter from the client holding the shares instructing us to perform the PT is required signed by the client.
An official document should be provided to prove the close relationship

Requirements for Transmissions/Estate of Late
In the case of estate of Late, the following documents are required:-

  • Certified copy of death certificate
  • Certified copy of confirmation of grant (obtain from the court)
  • Certified copy of letter of administration (obtain from the court)
  • Certificates or Indemnity for Lost share certificates.
  • All unpaid dividend cheques from the specific share registrar.