Regulatory Alerts2007-12-04 | TED-FEM-FPC-GEN-01-146-07Global Depository Receipts (GDRs) and Certificate of Capital Importation (CCI) Issuance
This document outlines guidelines for Authorised Dealers regarding the issuance of Global Depository Receipts (GDRs), a financial instrument that enables foreign investors to own shares in Nigerian companies. It states that a Certificate of Capital Importation (CCI) shall be issued for any GDR inflow, with a master CCI being issued in favor of the Depository bank (DB). The receiving Authorised Dealer must provide a copy of the CCI with the details of the beneficial investors. Upon cancellation of any portion of the GDR offshore by an investor, the DB must inform the custodian and provide documentary evidence. To trade local shares using the valid CCI covering withdrawn GDR shares or to repatriate funds outside Nigeria, investors must follow certain guidelines such as providing a completed Form A, documentary evidence of conversion from GDRs to shares, and evidence of cancellation of the GDR. Authorised Dealers are responsible for performing book-keeping and paper trail procedures to ensure compliance with these guidelines. Any doubts should be clarified by contacting the Director, Trade and Exchange Department at the Central Bank of Nigeria.