A report by Uganda Securities Exchange (USE) indicates that 99.8 per cent (40,000) of investors at the stock market have a Securities Central Depository account.
The account enables investors to participate in buying and selling of shares.
Speaking during the Ring the Bell for Financial Literacy 2021 event in Kampala, Mr Paul Biwso, the USE chief executive officer, said USE had also digitised a number of its module that seeks to simplify market accessibility for retail investors in terms of opening Securities Central Depository accounts.
The digitisation, he said, will enhance the self-service platform that is expected to encourage growth of the number of investors at the exchange.
“Currently we have about 40,000 investors with SCD accounts. 8 per cent of these are foreign-based who have dominated the market. However, over the past few months, we are beginning to see this trend change,” he said. This, he added, has been a result of continuous sesnsitisation supported by annual events such as International Organisation of Securities Commissions (IOSCO), a world investor week campaign that seeks to promote awareness about investor education and protection.
In 2020, IOSCO in partnership with the World Federation of Exchanges initiated the Ring the Bell for Financial Literacy 2021 under a similar concept -that in recognition of the unique position of exchanges there was an opportunity to collaborate with various stakeholders to raise awareness on the equally critical issue of, investor education and financial awareness generally.
Mr Biwso said USE had this year focused on the role of technology in creating sustainable finance, especially by promoting financial awareness and literacy as a critical first step.
The role of a stockbroker is to facilitate buying and selling of stocks at the stock markets, on behalf of investors.
Types of brokers; Based on the types of clients they cater to, stock brokers are usually classified into two distinct categories:
Mr Keith Kalyegira, the Capital Markets Authority chief executive officer, said stockbrokers are a relevant link in the equity markets that must never be ignored.
“It is very risky to bypass brokers. You can’t invest in stocks by yourself even if you have apps,” he said. moketch@ug.nationmedia.com