INTRODUCTION
The Securities Central Depository (SCD) was established to operate as a subsidiary company of the Uganda Securities Exchange and is licensed as a Central Securities Depository under the Capital Markets Authority Act Cap 84.
The Securities Central Depository has been operational since July 2010 and commenced full dematerialization in 2012. Uganda now operates a T+3 settlement cycle which allows for real time transfer of ownership as trades are confirmed by the depository participants.
What is a Central Securities Depository?
A Central Securities Depository (CSD) is a specialized financial institution that holds securities in either physical or electronic (dematerialized) form to enable book entry transfer of securities. The CSD plays a crucial role in ensuring the safe and efficient transfer of securities ownership in financial markets.
OWNERSHIP AND GOVERNANCE
Ownership Structure
The Securities Central Depository is a wholly-owned subsidiary of the Uganda Securities Exchange, operating under the regulatory oversight of the Capital Markets Authority.
Regulatory Framework
Licensed and regulated under the Capital Markets Authority Act Cap 84, ensuring compliance with international best practices and standards for securities depositories.
Operational Excellence
Operating on a T+3 settlement cycle with full dematerialization capabilities, providing real-time transfer of ownership and enhanced market efficiency.