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FAQs - Securities Trading

View Frequently Asked Questions relating to Securities Trading

  • Account Opening
  • Key Terms
  • Trading and Investment
  • Shares & Dividends
1. What is a SCD account?
  • Securities Central Depository is an account that enables you to carryout business transactions/investing in equities on the exchange.
2. How does one open a SCD account with SBGS?

There are 2 options  and these include:

  • Easy portal, follow this link, https://scd.use.or.ug/ and choose SBG Securities Uganda  as your broker.
  • USSD, here you use your mtn line and dial *165*65# and choose SBG as your broker.
3. Why do I need to provide all these documents?

These documents are part of your KYC and they provide evidence/proof for opening and SCD account.

4. What are the account opening requirements if I already hold a bank account with Stanbic Bank?

You need to present a passport size, national ID/passport photo copies for foreigners.

5. How do I open a CDS account at Central Bank?

Fill a form attach a copy of your National Id and a passport photo

6. What are the CDS documents and what are they used for?

They provide proof of transaction between the parties.

7. What is the minimum amount required to invest in the Uganda Securities Exchange?

Your finances limit you. Advisable amount is 100,000 Ugx

1. What is a bond?
  • A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)
2. Who is a stockbroker?
  • A stockbroker is an agent or firm that charges a fee or commission for executing buy and sell orders for an investor.
3. What is a registrar?
  • The registrar verifies the shareholders who own the stock on the record date and the number of shares owned as of that date. Both cash and stock dividends are paid based on the registrar's list of shareholders.
    The registrar changes this shareholder data based on current buy-and-sell transactions.
4. What is immobilization?
  • The placement of physical certificates for securities and financial instruments in a central securities depository so that subsequent transfers can be made by book entry
5. What if I want my certificate back (De-materialization)?
  • It is not possible to get it back because the certificate has been immobilized your shares are transferred into electronic form and your balances can be monitored through your portal.
6. What is the role of the Uganda Securities Exchange? 
  • It’s a market platform for equities/stocks, treasury bills and bonds.
7. What is the role of the Capital Markets Authority?
  • This is a government parastatal that regulates the capital markets.
1. What is the minimum investment I can make in bonds?

Uganda shillings 100,000 (one hundred thousand)

2. How can I invest in government bonds?

You can go through your bank as a primary dealer or your broker at the exchange

3. How can I trade my bonds?

​​​​​​Through sending instructions to SBG Securities Uganda

4. Can I trade my bonds online?

Currently not available

5. How quickly can my order be executed?
It depends on the available offers but your broker can help you in time
6. How long does it take for a trade to settle?
It is T+3. Three days from when the trade was initiated.
7. When does the securities market open?

Monday to Friday 9:30am -1:00Pm exclusive of holidays.

8. How can I transfer money to my share trading (CDS) account in order to purchase shares?

You contact your SBG Securities Uganda for guidance.

9. How soon after depositing funds into my CDS account can I buy shares

As soon you confirm with your broker.

10. How often do I receive my transaction statement?

As soon as you want since it is shared on the Exchange’s easy portal.

11. What are the charges for trading in shares?
A 2.1% on every transaction value.
12. How will I know when my order is executed?
Your broker will confirm with the contract note.
13. How long are orders valid for?
Depending on the order type.
1. How are share-price spreads determined?
It’s determined by the forces of demand & supply not exceeding opening price with 15% above and below
2. Can I place an order at any price?
No, it is based upon the opening price.
3. How can I sell my shares in certificate form?
 One has to first open a SCD account, then immobilize the shares into electronic format then once the shares reflect in the system one is able to sell them off.
4. Can I use my shares to get a loan?
Yes, you get a letter from the bank you wish to get a loan from and take it to your broker and fill in a Form 5 to lien your shares.
5. What happens to my shares when I complete paying off my loan?

You again take a letter to your broker from the bank you had acquired a loan from confirming your payment and once you meet all the requirements you fill in a form 6 and you shares are un lien.

6. What happens to my shares when a counter is suspended?

Your shares are still there but trading can be put on halt due to serious concerns about a company’s assets, operations, or other financial information.

7. How do I move shares from One Broker to another?
By contacting the broker, you wish to move to and then fill in the form 4B and provide the supporting documents.
8. How do I receive my dividends?
Through the details provided on your bank account and captured on the register. 
9. What should I do if I want to receive my dividends via EFT?
You share your details with your broker.
10. How can I get paid after making a payment request?
Basing on mode of payment you indicated in your paying request.