Kampala — Uganda Securities Exchange last week unveiled the Securities Central Depositary (SCD), an electronic store for company shares traded at the stock market as it looks at improving efficiency at the stock market.

The SCD was unveiled to investors, as the first step towards computerizing the trading of securities.

The migration from paper certificates to the SCD system now means that shareholders will be issued with personal electronic accounts as evidence for ownership of a company's listed shares at the USE.

The same system is currently used in advanced markets especially; in Europe, the United States, South Africa, and Kenya, among others.

Opening free Accounts

Following the launch of the electronic system in Kampala last week, Mr Simon Rutega, the chief executive officer of USE called on both holders of listed company shares like Stanbic Bank, as well as potential investors to open free SCD accounts at their SCD Agents (stock brokerage firms) offices as part of the transition.

He said the migration to the new system was a giant step for the stock market. "What it means is; we are moving away from a paper-based to a paperless system, from a manual to an electronic system," he told journalists at the launch of the SCD system.

"It means that if an investor is going to participate in this market, he or she will require an SCD account."

After opening their accounts, the next stage for investors who currently hold their shares in certificate or paper form, will be immobilisation- where their securities will be deposited into their electronic accounts in the SCD.

Ms Harriet Kiwanuka, the head of trade, research and market development at USE, said the migration to the new system is an innovation to promote efficiency and convenience.