In an ever-evolving financial landscape, regulations play a pivotal role in ensuring transparency and efficiency. One such directive issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) to the Central Securities Depository Botswana (CSDB) has significantly impacted the realm of shareholding and trading on the Botswana Stock Exchange (BSE).

As of April 29, 2016, the NBFIRA mandated the dematerialization of all shares traded on the BSE, transitioning them from physical certificates to electronic form. This directive aimed to streamline processes, enhance security, and align Botswana’s financial markets with global standards.

However, not all shares swiftly made the digital leap. Shareholders without accounts on the CSDB, still holding physical certificates, posed a challenge. To address this, the CSDB established Omnibus accounts, acting as temporary repositories for these shares.

What are Omnibus Accounts?

Omnibus accounts serve as temporary holdings for shares yet to be dematerialized. They function akin to suspense accounts, preventing shareholders from conducting transactions until their shares are transferred into personal electronic accounts.

Navigating Omnibus Accounts:

For shareholders finding their names on the Omnibus list, unlocking their shares requires opening a CSDB account. This process mirrors opening a bank account and necessitates the involvement of a stockbroker.

Steps to Exit the Omnibus Account:

1. Select a Stockbroker: If not already engaged with one, nominating a BSE Licensed Broker is essential. These brokers facilitate the transition from Omnibus to personal accounts.
2. Documentation: Prepare necessary documents, including a certified Omang or passport, proof of address, and KYC details.
3. Opening a CSDB Account: With the assistance of the chosen stockbroker, initiate the process of opening a CSDB account. This step also involves setting up a brokerage account for trading purposes.
4. Transfer of Shares: Upon account activation, shares are transferred from the Omnibus account to the personal CSDB account, enabling shareholders to resume trading activities.

Key Contacts for Assistance:

Details of the three (3) stock brokering firms that can assist you (BSE Licensed Brokers) are as follows:

For shareholders encountering challenges or seeking clarification regarding dematerialization, reaching out to the Central Securities Depository Company of Botswana is recommended. They can be contacted via email at csd@bse.co.bw or by phone at 3674400/11/12.

Addressing Special Circumstances:

• Lost Certificates: Shareholders with misplaced certificates need not panic. Brokers provide Indemnity Forms, attested by a Commissioner of Oaths, to facilitate the process.
• Deceased Shareholders: In cases involving deceased shareholders, additional documentation and legal procedures are required. Executors of the estate or designated beneficiaries must navigate through specific protocols to access shares.

Dematerialization signifies Botswana’s commitment to modernizing its financial infrastructure. While transitioning from physical certificates to electronic shares may pose initial challenges, the long-term benefits in terms of efficiency and security are undeniable.

As Botswana continues its journey towards financial modernization, adherence to regulations and proactive engagement with authorized entities remain crucial for shareholders navigating this transition.