1. CENTRAL DEPOSITORY
COMPANY (CDC)

2. BACKGROUND
 In 1993 USAID sponsored study was
conducted to develop a conceptual
framework for the depository system.
 This report laid the foundation for depository
design.
 In 1993, CDC was incorporated to implement
and operate the Central Depository System
and eliminate the tedious process of physical
shares handling and transfer.

3. ESTABLISHMENT:
 Central Depository Company of Pakistan
Limited (CDC) was incorporated as a public
limited company (Unlisted) in 1993.
 The Company started operations in
September 1997.
 CDC is the only depository in Pakistan,
handling the electronic (paperless) settlement
of transactions carried out at all three stock
exchanges of the country.

4. OBJECTIVE
 CDC was primarily established to operate the
Central Depository System (CDS) for equity,
debt and other financial instruments that are
traded in the Pakistani Capital Market.

5. CENTRAL DEPOSITORY
SYSTEM (CDS)
 CDS is an electronic book entry system used to
record and maintain securities and their transfer’s
registration.
 The system changes the ownership of securities
without any physical movement or endorsement of
certificates and execution of transfer instruments.
 An IBM led consortium along with the management
of the company implemented CDS in Pakistan.

6. OBJECTIVES:
 To provide secured and dependable services
to the capital and financial market.
 To operate as a central securities depository
on behalf of the financial services industry so
as to contribute to the country's ability to
support an effective capital market system

7. SHARE CAPITAL:
 Authorized capital: Rs. 750,000,000
 Issued, subscribed and paid-up
capital:Rs.302,250,000.

8. SOURCES OF FUNDS
 CDC earn its revenue through;
 CDS Operations
 Investor Account Services
 Trustee & Custodial Services
 Facility Management Fee NCCPL
 Other sources

9. MANAGEMENT
 Management of CDC consist of a chairman ,
chief executive officer along with 9 member
board of directors
 the chief executive officer is the head of a
company and all the departments and board
of directors report to him.
 Mr. Muhammad Hanif is the CEO of the
company.

10. BRANCHES
 Its main office is situated in Lahore and three
other branches are located in Karachi,
Islamabad and Hyderabad.

11. FUNCTIONS
 CDC Pakistan provide following main services
to its clients in financial and capital market:
1. Investor Account Services.
2. Trustee & Custodial Services.
3. Customer Support Help Desk.
4. Account Statement Verification.
5. Global Terminal Facility.
6. CDC E-mail Facility.
7. Training

12. INVESTOR ACCOUNT SERVICES
 This service allows investors to directly open
and maintain accounts in Central Depository
System (CDS) for electronic settlement of
securities.
 Before IAS to settle the securities through
Central Depository System, investors had to
open client accounts (sub accounts) with the
Participants (brokers & financial institutions).
 Now with IAS, investors can also have direct
access to CDC.

13. INVESTOR ACCOUNT
SERVICES
ELIGIBILTY CRITERIA:
The following are eligible to open Investor Account with CDC:
1. Individuals who are Pakistani nationals (Residents/ Non Residents),
Foreigners and;
 Are not minor (Minors can open IAS accounts through their legally
acceptable guardians).
 Are not of unsound mind.
 Have not applied to be adjudicated as an insolvent, have not suspended
payments and have not compounded with their creditors
 Are not undischarged insolvent.
2. Other than Individuals such as corporate entities, trusts, societies, etc.


14. INVESTOR ACCOUNT
SERVICES
 BENEFITS:
 Investors have full control over their securities
which are maintained by CDC and account is
operated only on the instructions of investors.
 By opening Investor Accounts with CDC,
investors are able to fully control their electronic
securities. Although trading is still done through
brokers, settlement is done through CDS on
written instructions from investors.

15. TRANSACTIONS IN IAS
 Deposit
Investors can deposit their securities directly
into their Investor Accounts through IAS.
IAS Account Holders can deposit only those
physical securities in their IAS Account which
are duly transferred in their own names.

16. TRANSACTIONS IN IAS
 Delivery Out
At the time of opening of Investor Account, an
investor is given a transaction order book (similar to
a bank cheque book) for delivery out transactions.
 Delivery In:
An investor needs to provide his/her Investor
Account number to the Participant in order to
transfer securities in his/her Investor Account with
CDC.

17. TRANSACTIONS IN IAS
 Withdrawal
an investor needs to fill out the Securities
Withdrawal Form (SWF) along with share
transfer stamps as per the prevailing rate and
submit it at the front desk of IAS department

18. CLOSING OF INVESTOR
ACCOUNTS
To close an Investor Account, an investor has
to intimate CDC through Account Closing
Request Form (ACRF) duly signed by all
authorized signatories. The account will not
be closed in the following circumstances:
 If the cash or security balance of Investor Account
is not zero.
 If there is any pending corporate action awaiting
credit in Investor Account.
 If there is a pending withdrawal request.

19. TRUSTEE AND CUSTODIAL
SERVICES
Central Depository Company started Trustee &
Custodial Services in 2002, initially with two
open-ended mutual funds having net asset
value of Rs. 500 million.
CDC currently provides T&C Services to more
than 77 mutual funds managed by various
Asset Management Companies (AMCs) with
an aggregate fund size of approximately Rs.
200 billion.

20. TRUSTEE AND CUSTODIAL
SERVICES
 The prime responsibility of CDC as the
trustee/custodian is to take into its custody all
the assets of the Collective Investment
Scheme and hold them in trust on behalf of
the unit or certificate holders.
 They also carry out the instructions of the
asset management company/investment
adviser in respect of the investment portfolio
and the units/certificates held by the
investors,

21. SHARE REGISTRAR
SERVICES
 CDC offers Shares Registrar Services (also
known as Transfer Agent or R/TA services) to
facilitate Issuers and their shareholders.
 CDC initiated this service in 2008.
 CDC is the first company in Pakistan,
providing SRS facility to its client.
 CDC - SRS offers a composite portfolio of
maintenance, registration, verification and
direct customer dealing & interaction.

22. SHARE REGISTRAR
SERVICES
Following is the scope of services that would be provided under the
umbrella of CDC – SRS Services.
 Maintenance of computerized Members’ Register
 Maintenance of specimen signatures of share holders
 Dealing with share holders on SRS Service Counter, telephone
and through mail.
 Verification of share holders’ signatures on Transfer Deeds and
Proxy Forms etc.
 Physical Transfer of Securities, Deposit of Securities into CDS,
Withdrawal of Securities from CDS and transmission of physical
certificates / Securities.
 Split / Consolidation / Renewal of certificates

23. SHARE REGISTRAR
SERVICES
 Dividend Entitlements and Payments to share holders
 Bonus Shares issuance to share holders with fractional
shares payment
 Custody of undelivered certificates and dividend
warrants, etc.
 Preparation of reports related to the securities and share
holders
 Taking attendance of share holders in Annual General
Meeting (AGM) / Extra-Ordinary General Meeting
(EOGM)
 Compliance of legal obligations as Share Registrar
 Other standard Share Registrar department activities
such as dispatch of Annual / Half Yearly Accounts, etc.

24. CURRENT PERFORMANCE OF
CDC