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SEMINAR ON MANAGEMENT OF
SHARES, DIVIDENDS AND ESOPs
OCTOBER 17-18, 2018
CPS GOVERNANCE CENTRE, UPPERHILL
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About the SpeakerMarion Kioi is the Head of Operations at the Central Depository & Settlement Corporation and a director at CDSC Registrars Limited.
She holds a bachelor of Science degree from the University of Nairobi and is currently pursuing MSC Finance from the same university.
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MANAGEMENT OF BONDS……………………………………….
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Outline:
1. Introduction
2. Features of bonds
3. Types of bonds
4. Bond management process
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IntroductionA bond is a debt instrument in which an investor loans money
to an entity (typically corporate or governmental) which
borrows the funds for a defined period of time at a variable or
fixed interest rate. Owners of bonds are debt-holders, or
creditors of the issuer. Bonds are commonly referred to as
fixed-income securities. Many corporate and government
bonds are publicly traded on exchanges, while others are
traded only over-the-counter.
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Features of bonds
1. Principal
2. Coupon
3. Maturity
4. Market interest rates
5. Yield
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Types of bonds
Types of
Bonds
Form of payment
1.Non-interest bearing bond2. Deferred –interest bonds 3. Income bonds 4. Index bonds
Type of Coupon
1. Coupon bonds
2. Zero coupon bonds
3. Full coupon bonds
Types of Collateral
1. Secured & Unsecured bonds 2. Debentures3. Sinking fund bonds4. Guaranteed bonds
Type of issuers
1.Treasury (government) bonds.2. Municipal bonds3. Corporate bonds
Recall possibility
1. Callable (redeemable) bonds2. Non-callable (irredeemable) bonds
Type of circulation
1. Convertible bonds
2. Interchangeable bonds
Place of circulation
1. Internal bonds
2. External bonds eg. Eurobond
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Bond management process
Bond Issuance
Register Maintenance
Coupon Payments
Redemptions
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MANAGEMENT AND PROCESSING OF DIVIDENDS
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Outline:
1. Introduction
2. Types of dividends
3. Dividend payment modes
4. Dividend payment process
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IntroductionThe dividend payment process is managed by the registrar in
consultation with the Issuer and the bank.
The role of the issuer is to ensure the declared dividend is
approved by the board and the shareholders and the
necessary announcements are made.
The issuer may choose to appoint a bank to process payments
or the registrar may use their preferred bank.
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Types of Dividends
Interim dividend
Final Dividend
Special Dividend
Scrip Dividend
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Dividend payment modes
Cheques
RTGS/ EFT
Mobile Money
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Dividend payment Process
The registrar undertakes the following process:
Receive Entitlement file
Prepare payment schedules
Process payments
Reconciliation
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Challenges faced
Inability to pay some shareholders
due to:
Wrong or incomplete addresses
Wrong bank account details
Fraud
Unclaimed dividends
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SHARE REGISTER MAINTENANCE
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Share Register Maintenance process
This role entails overall management of the
share register and includes the following
processes:
Initial set-up of the register
Tracking movements in the share register
and maintenance of an updated electronic
register.
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Register maintenance….
Responding to shareholder queries and
correspondence.
Reporting on the register statistics to the
various relevant authorities and the
issuer.
Processing of share transfers
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Register maintenance….
Maintenance of all records and documents
relating to the register.
Change of shareholder details
Periodic reconciliation with CDSC
Unclaimed Assets Management
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THANK YOU
Q&A
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