5.22
CENTRAL
REGISTRY
SYSTEM
5.22.1
Complete
the
Development
of
the
Central
Depository
System
to
Include
Equities
The
Central
Securities
Depository
(CSD)
System
commenced
operations
On
November
29,
2004
to
provide
a
registry
for
securities
in
electronic
form.
It
operates
as
a
unit
under
Bank
of
Ghana
(BoG).
It
has
a
depository
that
is
capable
of
handling
equities,
government
debt
and
corporate
debt
instruments
and
transactions
on
these
securities.
The
implementation
of
the
system
was
in
two
phases.
The
first
phase
involved
the
registration
of
investors
into
the
CSD
system
and
the
admission
of
Government
of
Ghana
and
Bank
of
Ghana
(BoG)
Securities.
The
second
phase
would
involve
the
admission
of
equities
into
the
CSD
system.
This
will
require
the
availability
of
a
legal
framework
and
the
repeal
of
some
existing
sections
of
the
Companies
Code,
1963
(Act
179).
A
Central
Securities
Depository
Bill
has
been
passed
into
law.
The
law,
The
Central
Securities
Depository
Act,
2007
(Act
733),
was
given
presidential
assent
on
May
16,
2007.
The
law
creates
the
legal
framework
for
the
establishment
of
a
CSD,
outlines
the
functions
of
the
CSD,
the
admittance
of
Securities
(including
Equities)
into
the
CSD
among
others,
and
some
consequential
amendments.
Section
1
of
the
Central
Securities
Depository
Act,
2007
(Act
733)
requires
that,
“A
central
securities
depository
may
be
established
by
a
company
under
the
Companies
Code,
1963
(Act
179)”.
According
to
the
Act,
a
company
will
have
to
be
established
for
the
operations
of
the
CSD.
Section
2
of
the
Act,
under
Application
Procedure,
also
requires
that,
“A
person
who
intends
to
establish
or
operate
a
central
securities
depository
shall
apply
in
writing
to
the
Commission
(The
Securities
and
Exchange
Commission)”.
The
CSD
will
therefore
be
under
the
direct
supervision
of
the
SEC.
The
Ghana
Stock
Exchange
(GSE)
has
set
up
a
securities
depository.
Hence
BoG’s
depository
would
for
the
moment
provide
custody
for
only
government
securities.
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