What happens to listed shares of a deceased person at the Nairobi Securities Exchange?
Making arrangements to transfer the shares of a deceased person is important so as to access the dividends and capital gains from such shares. Below is a simplified procedure of how to transfer the shares at the NSE.
First confirm the number of shares that were held by the deceased from the Central Depository & Settlement Corporation. This will assist in the determination of the exact number of shares held by the deceased. You can also contact the relevant company registrar. This can also be accessed from the statement issued by the CDSC or on the share certificate.
Apply for letters of administration– as part of the estate administration process; you will be required to apply for letters of administration from the courts.
For purpose of transfer of NSE shares, it is extremely important to state the correct/exact number of shares that were held by the deceased to avoid having to obtain an amended grant. Remember not to state vaguely like â€śshares held at the Nairobi Securities Exchangeâ€ť as this will not be acceptable. The correct manner to state is â€ś1,000 shares of East Africa Breweries Limitedâ€ť.
The name of the beneficiary must be correctly and clearly stated. For clarity, always use the names as listed in the National ID or passport.
Contact a stockbroker to forward the application to the Nairobi Securities Exchange. Only licensed stockbrokers can forward the application for processing.
The documents required to process the private transfers are as listed below.
Where the letters of administration have been issued by a foreign court, they should be sealed by the High Court of Kenya.
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