Introduction:

Incorporated as a public limited (Unlisted) company in 1993, Central

Depository Company of Pakistan Limited (CDC) is the only depository in
Pakistan. The Company started operations in September 1997. CDC is the sole
entity handling the electronic (paperless) settlement of transactions carried out at
all three stock exchanges of the country. Through efficient functioning of CDC,
approximately 99% of the market settlement is in book entry form.

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. However, with the passage of time and development of
Pakistan’s Capital Market, it now also provides services that are beyond the
traditional depository services. 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.

CDC provides depository services to a wide range of Capital Market

participants which includes Brokers, Asset Management Companies, Banks
(including Custodian Banks) and general retail investors. It also serves to link up
the Issuers and Registrars of securities and the market for the purpose of executing
corporate actions like disbursement of corporate benefits and carrying out mergers
and splits.

The aim of CDC is 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 which will attract institutional and retail level
investors from Pakistan and abroad. CDC is regulated by the Securities and
Exchange Commission of Pakistan (SECP). CDC has branches in Karachi, Lahore,
Islamabad and Hyderabad.

Taking another step towards capital market development, CDC has

diversified its operations in the following services:
Launched in 1999, Investor Account Services (IAS) allows retail investors to open
and maintain securities’ accounts directly with CDC.
Trustee and Custodial Services (T&C) were introduced in 2002 and enlists Open-
end and Closed end Mutual Funds and Voluntary Pension Schemes.
Launched in 2008, Share Registrar Services (SRS) provides issuing companies
state-of-the-art facilities of registrar and transfer agent services, including
registration and verification of shares and records and customer dealing on behalf
of issuer companies.

History:
With an ever increasing exponential growth in the Pakistani Capital Market
during the last decade causing a huge increase in trading volumes, the physical
handling of paper-based shares/ certificates not only became laborious but also
time consuming. The manual system was no longer feasible. It was in this
perspective that CDC was incorporated to implement and operate the CDS and
eliminate the tedious process of physical shares handling and transfer.
Experts from Price Waterhouse Coopers conducted a study in 1993 to
develop a conceptual framework for the depository. The study was sponsored by
the United States Agency for International Development (USAID) and their report
laid the foundation for depository design.

In November 1994, the Board of Directors at CDC awarded a turnkey

contract to the IBM consortium for the implementation of the system in Pakistan.
The IBM consortium proposed a comprehensive Master Implementation Plan
(MIP) to the CDC Board after a detailed analysis of the following:

•National requirements
• Company and Banking laws
• Regulations & Procedures
• Financial and organizational aspects of the project
In April 1995, MIP was approved by the CDC board.

The infrastructural development included development and testing of software,

hiring and training of personnel and establishment of CDC offices. The CDC
offices at Lahore and Islamabad were connected to the head office through VSAT
link leading to the development of a geographically neutral depository.

What is Central Depository System ?

The main function of CDC is to operate and maintain the Central Depository
System (CDS), drawing guidance from a well-defined legal framework laid down
by Securities & Exchange Commission of Pakistan (SECP). Installed by an IBM-
led consortium, CDS is an electronic book-entry system used to record and
maintain securities and to register the transfer of securities.
The system changes the ownership of securities without any physical movement or
endorsement of certificates and execution of transfer instruments. CDS facilitates
equity, debt and other financial instruments in the Pakistani Capital Market. It
manages Ordinary & Preference shares, TFCs, WAPDA Bonds, Sukuk, Open-End
& Closed-End funds and Modaraba Certificates.

Benefits of Electronic Settlement through CDS.

Following are some of the benefits of electronic settlement of securities through
CDS:
• Reduced workload and manpower requirements due to paperless settlement.
• Instantaneous transfer of ownership.
• No stamp duty on transfers in CDS.
• No risk of damaged, lost, forged or duplicate certificates.
• No impact in case of sudden increase of settlement volumes.
• Instant credit of corporate entitlements (bonus, rights and new issues).
• Paperless environment (no traditional vaults).
• Secure custody of securities.
• Substantial reduction of paperwork during book closure.
• Convenient pledging of securities.
• Substantial reduction in time & capital investments.
Investor Account
Service(IAS)
•

Introductio
n
•

Investor Account Services offered by Central Depository Company allows

retail investors to directly open and maintain accounts in Central Depository
System for electronic settlement of securities. Earlier, to settle the securities
through Central Depository System, investors had to open client accounts (sub
accounts) with the CDS Participants (brokers & financial institutions). With
Investor Account Services, investors can now have direct access to their
account.

Investors now have direct access to their securities, which are maintained by
CDC in accounts operated directly and only on the instructions of investors.
CDC is regulated by the Securities & Exchange Commission of Pakistan. The
relevant legislations are Companies Ordinance 1984, Central Depositories Act
1997 and Central Depository Company of Pakistan Limited Regulations.

Control

After the dematerialization of security certificates, investors no longer have

physical possession of securities and are troubled by the lack of control over
their securities. By opening Investor Accounts with CDC, investors are able to
directly control their electronic securities. Although trading is still done
through brokers, settlement is done through CDS on written instructions from
investors.

Enhanced Services
Confirmation of all transactions carried out in an Investors Account is sent to
investors on request. In case, where account is operated by an agent on
investor's behalf, confirmation is sent directly to the investor. This measure
ensures that investors are constantly aware of the movement of securities in
their account.

Eligibility Criteria
The following are eligible to open Investor Accounts with CDC:

1. Individuals who are Pakistani nationals (Residents/ Non Residents),

Foreigners and;

Are not minor

Are of sound mind
Have not applied to be adjudicated as an insolvent, have not suspended
payments and have not compounded with their creditors.
Are not undercharged insolvent.
2. Other than Individuals such as corporate entities, societies etc.

Account Opening Process

To open an Investor account, investors need to fill out the Investor Account
Opening Form available at the IAS counters at CDC offices. Investors can also
get the form by mail through a written or telephonic request. For a telephonic
request, call our Customer Services at the toll free number: 0800-CDCPL
(23275).

The applicant’s physical presence is mandatory at the time of submitting

application for opening of Investor Account. In case of joint accounts physical
presence of all account holders will be required.
Investors are required to submit the following with the application form:

In case of an Individual Investor:

Copy of CNIC (Applicant (Title Holder) & all Joint Account Holders, if
applicable)
Copy of NICOP/Passport (In case of Foreign/Non-Resident account, duly
attested by Consulate Office of Pakistan)
Bank Verification is required on the Account Opening form by the bank
manager only where the applicant (Title holder) of the prospective IAS
Account is maintaining a bank account.
Documentation of Zakat Status (Notarized copy of declaration on prescribed
format for applicant (Title Holder) & all Joint Account Holders, if applicable)
Affidavit for Nomination(s) (As per prescribed format on Rs.20 non-judicial
stamp paper, if applicable)
Power of attorney (As per prescribed format on Rs. 200 non-judicial stamp
paper if applicable)
NTN certificate (optional).
Foreigners:
Proof of nationality duly attested by Notary Public.
In case of a corporate entity:
Certified true copy of Memorandum and Article of Association/By
laws/Charter (relevant documents where applicable).
Prospectus (in case of Modaraba).
Certified true copy of the Board Resolution: Investors can either fill out
the Board Resolution given in the Investor Account Opening Form (which will
expedite the account process), or provide a separate resolution having the same
meaning. In the latter situation, the processing time will be longer.
Certified true copy of Certificate of Commencement of Business (relevant
documents where applicable).
Certified true copy of the Certificate of Incorporation (if applicable).
Power of attorney (if applicable).
NTN certificate (optional).
All such documents that CDC may require.
Note: In case of corporate clients all the forms have to be signed by the
authorized signatory (ies) as authorized by the board.

As many as four persons/Investors can jointly open an account. Kindly specify

in the Investor Account Opening Form, as to how the account will be operated
i.e. singly, jointly, or in any other combination.

Any person authorized by the investor can operate the account on his behalf.
However, the Investor has to submit a power of attorney along with his
specimen signature authorizing the relevant person to operate the account on
his behalf.

Services offered by CDC to Investor Account Holders

Investor Account Services are offered at two CDC offices in

Karachi.

CDC – CDC – KSE

SERVICES OFFERED
House Branch
Account Maintenance
Account Opening Yes Yes
Updating and Maintenance Yes Yes
Account Closing Yes Yes
Transactions
T.O. Processing Yes Yes
T.O. Book Issuance Yes Yes
Deposit of Physical Securities No Yes
Withdrawal of Securities Yes Yes
Pledge Processing of Securities Yes Yes
Redemption & Transfer of Units Yes Yes
Cash Deposits Yes Yes
Cash Adjustments Yes Yes
Cash Refunds Yes Yes
 Customer Support Services
A/C Balance & Activity Statements (On
Yes Yes
Written Request)
Distribution of all IAS Forms Yes Yes

At the time of opening of Investor Account, an investor is given a transaction

order (T.O.) book (similar to a bank cheque book) for delivery out
transactions. The investor fills out details in the transaction order leaf and
submits the same at the front desk of IAS department along with the payment.
Before making the payment, the investor makes sure that his/her account has
sufficient available balance of the security to be transacted.

Investors having accounts with IAS can give instructions of a maximum of

three securities per transaction order. While transacting in more than one
security, the investor makes sure that sufficient available balance of each
security is present in his/her account. If there is no sufficiently available
balance of any security in his/her account, the transaction order cannot be
executed, as partial transaction cannot be carried out. A new transaction order
is required in such cases. The transaction order is executed any time on the day
of submission.

Delivery to another CDC Investor Account Holder can only be made by way
of a gift. In such cases, the gift deed has to be submitted with the transaction
order. In other words, CDC only makes deliveries to the CDC Participants and
Account Holders and not to Investor Account Holders.

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.

Pledge
In order to pledge his/her securities, an investor needs to fill out the securities
pledge form and submit it at the front desk of IAS department. The investor
can only pledge securities in favour of Pledgees having accounts in CDS as
Eligible Pledgees. The pledge instructions are executed anytime on the day of
submission.

Withdrawal
In order to withdraw securities from Central Depository System, an investor
needs to fill out the Securities Withdrawal Form; affix transfer stamps as per
the prevailing rate on the second or third copy of the form and submit it at the
front desk of IAS department. Withdrawal request along with relevant
documents is sent to respective issuer/registrar any time the same day. An
investor receives physical certificates from the issuer/registrar directly on the
basis of first copy of Securities Withdrawal Form.

Closing of Investor Account

To close an Investor Account, an investor has to intimate CDC through
Account Closing Request Form. 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.
Therefore, if the security balance is not zero, investors can either move the
securities out of the account through delivery out transaction or withdraw the
balance. In case of cash balance, investors can deposit/claim the balance, as
the case may be.

Trustee & Custodial Service(T&C)

•

Introductio
n
•
•

In 2002, the mutual fund industry started flourishing in the Pakistani Capital
Market and provided a new concept and investment arena to retail and
individual investors who possess inadequate knowledge of the capital market
but are interested in utilizing its benefits.
Central Depository Company, realizing the importance and service demands of
this sector started Trustee & Custodial Services in 2002, initially with two
open-ended mutual funds with net assets value of Rs. 500 million. The
Company, through its proactive approach and high standards of service, has
become the market leader in the private sector and currently provides Trustee
& Custodial Services to 88 mutual funds managed by various Asset
Management Companies (AMCs)/Pension Fund Managers (PFMs) with an
aggregate fund size of approximately Rs. 117 billion. Since the start of this
operation, the CDC Trustee and Custodial Services has become the preferred
choice due to its excellent service level and the level of business understanding
possessed by their staff.

Nature of 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. Additionally, CDC carries out
the instructions of the asset management company/investment adviser/pension
fund managers in respect of the investment portfolio and the units/certificates
held by the investors, while ensuring that, in all material respects, the scheme
is being managed in accordance with the provisions of the constitutive
documents, the NBFC Rules, the Regulations and VPS Rules.
Scope of Services
The services undertaken by CDC as the Trustee/Custodian are as follows:

Transaction Settlement
 Receipt and delivery of securities against payment both in script-less
and physical form.
 Collection and receipt, on account of the beneficial owners.
 All income and other payments and distributions in respect of the
securities and/or cash held by us on behalf of the beneficial owners.
 Cash disbursements or payments for any fees, taxes, duties, levies,
expenses and/or any payments.
Nominal Ownership of the Assets
 As the nominee owner of all the assets held by the Fund, undertake
any exchange/transfer of assets on behalf of the Investor, the beneficial owner.
Compliance with Regulatory Requirements
 Responsibility to ensure compliance with the requirements of the
Constitutive Documents and relevant Rules & Regulations.
Corporate Actions
 Sending intimation to the clients regarding any notices that have been
received in respect of any bonus issues, rights issues, payment calls, takeover
bids or general meetings of the issuers/companies in relation to the securities
held on behalf of the beneficial owners.
 Receiving and holding, for the account of the beneficial owners, all
securities received as a result of a stock dividend, share sub-division or
reorganization, capitalization of reserves or otherwise.
Portfolio Reporting
 Provision of account balance reports, received from the Central
Depository System, either electronically or physically.
 Submission of periodic statements of balances of physical securities as
per the agreed terms.
 Provision of/arrangement of bank statements of the bank accounts
being maintained for and on behalf of the beneficial owners as per the agreed
terms.
Tax Reporting
 Provision of necessary information relating to withholding tax on
brokerage & commission and other payments pertaining to the settlement of
transactions.

IT System & Back-Up Support

Central Depository Company (CDC) is acknowledged as a model IT-based
company with the finest of IT professionals in the field of system development
and maintenance and state-of-the-art IT infrastructure. In order to further
enhance the quality and efficiency of our Trustee services, our in house
software development team has developed and a Fund Management System
(FMS) specifically for the activities of Trustee/Custodian business.
Fund Management System (FMS)
Through FMS, the company intends to implement straight-through-processing
(STP), which enables the ultimate possible automation of all the financial
transactions directly from AMC to Bank via CDC.

The objective of this effort is to streamline the process, eventually eliminating

the need for intervention in the settlement cycle. This in turn should reduce
risk and uncertainty as well as the level of customer securities and funding
required for completing settlement for a given volume of trade.

The system is expected to enormously increase the efficiency and reliability of

trustee and custodial operations. Further, the need for manual processing will
be reduced to a large extent. The system is expected to enormously increase
the efficiency and reliability of trustee and custodial operations. Further, the
need for manual processing will be reduced to a large extent. The system has
enabled CDC to perform the following functions, among others, more
effectively:

Maintenance of investment portfolio.

Ensuring compliance with the governing rules and regulations.
Recording and maintenance of the details of Unit Holder transactions.
Generation of different reports.
Other Systems
In addition to FMS, the company uses the Central Depository System (CDS)
for safe custody and settlement of equities, National Clearing and Settlement
System (NCSS) for settlement of equity transactions on the exchange and
systems of different Financial Institutions for banking transactions.
Security Measures
CDC being one of the most important pillars of the capital market gives
utmost importance to security of information. The Company constantly
upgrades its systems with the latest technology in order to maintain its position
as one of the most secure and reliable IT based organizations in the country.

Various firewalls and protection systems employed at CDC effectively restrict

unauthorized use of the system and virus infections with utmost efficiency.
Login to the computer system is protected through RSA token which generates
a constantly changing code complimented by a 4-digit PIN.
Database Back-ups
Proper back-up policy has been implemented to protect against loss of
electronic data. In line with this policy periodical back-ups are taken.
Similarly, all critical physical records are digitized to ensure their safety.
Custody Section
Since custody of assets is an integral part of our business, this activity is
undertaken separately from normal business operations whereby dedicated
staff ensures the safe custody and movement of physical securities and data.
For this purpose, a proper vault and filing area is in place for the critical
documents.

Compliance Framework
Considering the critical and sensitive nature of the business, there are several
checks and balances which ensure the vigilant performance of duties by the
Trustee. The basic documents that govern the operations of this department are
as follows:
Trust Deed
The document through which a Fund is originated and which defines rights
and obligations of the three parties involved, namely unit holder, AMC/PFM
and the trustee. Trust deeds are approved by the Securities & Exchange
Commission of Pakistan (SECP).
Offering Document
This document is a link between the prospective investors and the Fund
(Management Company & Trustee) and is governed by the Trust Deed. The
Management Company prepares this document, which is reviewed by the
Trustee and approved by the SECP.
NBFC Rules & NBFC Regulations
All the activities performed by the AMC on behalf of the Fund and executed
by the Trustee/Custodian are governed by the NBFC Regulations and Rules
issued by SECP.
Voluntary Pension Scheme (VPS)
All the activities performed by the Pension Fund Managers on behalf of the
Fund and executed by the Trustee are governed by the VPS Rules issued by
SECP.
Tax Authorities
The requirements of the Tax authorities with respect to deduction of tax,
payment and filing of returns are assisted by Trustee and Custodial
department.
Comprehensive operating procedures exist to ensure smooth performance of
all trustee functions.

Share Registrar Services(SRS)

•

Introductio
n
•

CDC offers Shares Registrar Services (also known as Transfer Agent or R/TA
services) to facilitate Issuers and their shareholders. This initiative was taken
in early 2008 to cater to the growing need of more comprehensive and
efficient SRS services in the Pakistani Capital Market.

SRS is one of the most important services required by a capital market in any
country or region. Considering the current market scenario where none of the
other SRS service offerings are composite enough to offer a one-stop solution,
CDC has developed a high-tech Share Accounting System with an exclusive
Authority & Security Management System and workflow components to
guarantee efficient SRS services. CDC - SRS offers a composite portfolio of
maintenance, registration, verification and direct customer dealing &
interaction.

CDC has taken a competitive lead in the market for SRS services by providing
a one-window solution to shareholders, backed by a country-wide branch
network and state-of-the-art IT infrastructure. Also, independent Legal and
Internal Audit departments ensure statutory and regulatory compliances.
Moreover, a customer support services department including a call center with
a toll free number [0800 – CDCPL (23275)] and a dedicated and trained
customer support team facilitating customers on a day-to-day basis.

Additionally, the feature that gives CDC a real edge is its Business Continuity
Program (BCP) supported by backup sites and disaster recovery capabilities to
ensure integrity of information and recovery of the service immediately in case
of any disaster.

Currently, CDC – SRS is the most comprehensive and efficient Shares

Registrar / Transfer Agent Services in the market. By providing a synergy
between depository and shares registrar services and through a combination of
state-of-the-art service features, CDC has raised the bar of service excellence
in the financial services industry.

Scope of Service
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.
Issuance of duplicate certificates and dividend warrants against appropriate
indemnities and fulfillment of formalities
Split / Consolidation / Renewal of certificates
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.
We also have future plans of handling the following transactions (IPO
handling, Registrar Services to Open Ended Mutual Funds)
Timings
Staying ahead of the competition, CDC also offers extended service counter
timings: Monday to Friday from 9:00 am to 1:00 pm and additionally from
2:30 pm to 4:30 pm. Furthermore, the service counters also operate on
Saturdays (only SRS provider to offer service on Saturday) from 9:00 am to
1:00 pm.

Technology Service Group(TSG)

Introductio
n
•

•
• As part of CDC’s diversified portfolio services offering and a strong
financial backbone, CDC Technology Services Group offers Enterprise
Information Technology based consultancy and implementation services to
its valued customers across the following markets: Financial Services,
Telecom & Media and Medium to Large Enterprises across the region
focusing predominantly towards Microsoft based competencies with the
right team equipped to deliver quality services to our customers.
• We at CDC Technology Services believe in a two-prong balanced approach
i.e. delivering not only the process adoption that is most beneficial to our
customer’s organization, but also facilitating the implementation of process
adherence utilizing the best in class enterprise technology. With this focused
approach CDC Technology Services facilitates to businesses, the innovative
and creative use of processes and technologies helping them to capitalize on
their ‘true potential’.
• We are confident that the strong lineage of values inherent within CDC’s
culture since 1997 will enable us to emerge as the next market leaders for
premiere technology services in the region. When you work with us, you
will feel the difference as you will be working with some of the most
seasoned, passionate and forward-thinking Consultants and Technologists in
not only Pakistan but the entire region.
• Objective
•
• “To be a leading institution providing quality services to our customers and helping them
capitalize on their true potential.”
•
• Our Commitment
• We are committed to provide quality services to our customers comparable
to best in class practices. The company’s aim is to be the centre of
excellence in every venture it pursues by continuously employing state-of-
the-art technology coupled with the best talent while maintaining good
corporate governance. CDC is committed to providing its employees an
environment of professional & personal growth.
 Account Holder

Account Holders are allowed to keep their beneficially owned securities into CDS.
Eligibility Criteria:
As per CDCPLR, any person, company, corporation or institution in such class as the Board may, from time to
time, determine in this behalf, may apply to the CDC for admission to the CDS as an Account Holder.

Account Opening Procedure:

A) The applicant initiates a written request for the account-opening package.
B) An account-opening package containing the following original/specimen documents is sent to the applicant.

Account Opening Package contains the following documents and request for other required documents:

C) The applicant submits the above-mentioned documents (complete in all respect) to CDC.

D) Upon receipt of the documents, CDS software is installed at the premises of the applicant.
Participant

Participants, apart from keeping their beneficially owned securities, are entitled to have client accounting
facilities and therefore can provide custody services to their clients.

Eligibility Criteria:
As per Central Depository Company of Pakistan Limited Regulations (CDCPLR), Any:

• Stock broker;
• Banking company within the meaning of the Banking Companies Ordinance, 1962 (LVII of 1962);
• Company, corporation or institution to which Section 3-A of the Banking Companies Ordinance, 1962
is applicable; or
• Company, corporation or institution in such class as the Board may, from time to time, determine in this
behalf, may apply to the CDC for admission to the CDS as a Participant.

Account Opening Procedure:

A) The applicant initiates a written request for the account-opening package.
B) An account-opening package containing the following original/specimen documents is sent to the
applicant.
Account Opening Package (Participant) contains the following documents and request for other
required documents:
Individual Corporate
Documents
Account Account
Admission Form: General information about the client is obtained on
Yes Yes
this form. Admission Form (Individual) Admission Form (Corporate)
Agreement: The agreement states terms and conditions agreed upon by
Yes Yes
both parties for opening an account with CDC.
Specimen Signature Card: Name & signatures of authorized signatories
Yes Yes
are obtained on this card.
Specimen Letter: Declaration of Meeting the Technical Requirements of
Yes Yes
The CDC Regulations To Become A CDS Participant/Account Holder.
Specimen Undertaking: confirmation regarding not maintaining an
Yes Yes
Investor Account with CDC.
Specimen Board Resolution: Certified true copy of the Board
Resolution authorizing the company to enter into an agreement with No Yes
CDC and nominating signatories on behalf of the company is required.
OTHER REQUIRED DOCUMENTS
Power of Attorney in case of an agent (if applicable) Yes No
Attested copy of Passport of Joint holder (if applicable) Yes No
Attested copy of NIC/Passport of Nominee Yes No
Certified true copy of Stock Exchange Registration Certificate (if
Yes Yes
applicable)
Attested copy of NIC of the applicant Yes No
Certified true copy of Memorandum & Articles of Association No Yes
Certified true copy of certificate of incorporation No Yes
Certified true copy of Certificate of Commencement of Business (if
No Yes
applicable)
Security Deposit & Documentation Fee Yes Yes
Certified true copy of Banking License(if applicable) No Yes
Certified true copy of NBFC License(if applicable) No Yes
Certified true copy of SECP Brokerage Certificate (if applicable) Yes Yes
Certified true copy of Notification by Stock Exchange(if applicable) Yes Yes
Certified true copy of Minimum Subscription Certificate and Prospectus
No Yes
(if applicable)
C) The applicant submits the above-mentioned documents (complete in all respect) to CDC.
D) Upon receipt of the documents, CDS software is installed at the premises of the applicant.
E) A comprehensive training session is conducted to train the users of the CDS to their satisfacti
The session explains in detail the concept & workings of the CDS.
F) As soon as the account is activated, following Ids and passwords are sent to the Applicants:
• CDS User IDs & Passwords
• Dialup ID & Password (If Applicable)

It is also to be noted that it takes three working days to open an account after submission of
documents (provided the documents are complete in every respect).

Eligible Pledgee
In order to lend against electronic book entry securities, the pledgors can pledge the desired
securities only in favor of Eligible Pledgee in CDS. Once pledged, the securities are no longer
available for transfer/delivery to the pledgor until such time as Eligible Pledgee releases them
from pledge. In short, the control over the pledged securities moves to Eligible Pledgee until
the securities are released. Any benefits however, still accrue to the Pledgor. Eligible pledgees
can also call the pledged securities in another account if they so desire.

Eligibility Criteria
Any person, company, corporation or institution in such class as the Board may, from time to
time, determine in this behalf, may apply to the CDC for recognition by the CDC for the
purpose of admission to the CDS as Eligible Pledgee.

Account Opening Procedure

A) The applicant initiates a written request for the account-opening package.
B) An account-opening package containing various documents is sent to the applicant. The
applicant is required to fill these documents apart from providing other relevant documents.

Account Opening Package (Eligible Pledgee) contains the following documents and
request for other required documents:
Individual Corporate
Documents
Account Account
Admission Form: General information about the client is
obtained on this form. Admission Form (Individual) Yes Yes
Admission Form (Corporate)
Agreement: The agreement states terms and conditions
agreed upon by both parties for opening an account with Yes Yes
CDC.
Specimen Signature Card: Name & signatures of authorized
Yes Yes
signatories are obtained on this card.
Specimen Board Resolution: Certified true copy of the
Board Resolution authorizing the company to enter into an
No Yes
agreement with CDC and nominating signatories on behalf
of the company is required.
OTHER REQUIRED DOCUMENTS
Certified true copy of Stock Exchange Registration
Yes Yes
Certificate (If applicable)
Certified true copy of Memorandum & Articles of No Yes
Association
Certified true copy of Certificate of Incorporation No Yes
Certified true copy of Certificate of Commencement of
No Yes
Business (if applicable)
Security Deposit & Documentation Fee Yes Yes
Certified true copy of Banking License(if applicable) No Yes
Certified true copy of NBFC License(if applicable) No Yes
Certified true copy of SECP Brokerage Certificate (if
Yes Yes
applicable)
Certified true copy of Minimum Subscription Certificate and
No Yes
Prospectus (if applicable)

C) The applicant submits the above-mentioned documents (complete in all

respect) to CDC.

D) Upon receipt of the documents, CDS software is installed at the premises of

the applicant.
E) A comprehensive training session is conducted to train the users of the CDS to
their
satisfaction. The session explains in detail the concept & workings of the CDS.

F) As soon as the account is activated, following Ids and passwords are sent to
the Applicants:

• CDS User IDs & Passwords

• Dialup ID & Password (If Applicable)

It is also to be noted that it takes three working days to open an account after
submission of documents (provided the documents are complete in every respect).

Global Terminal
All CDS elements are required to access CDS through their authenticated terminals
only. For the benefit of its clients, CDC has provided computer terminals at its
premises to be operated by clients (all CDS elements), in case of any technical
problem at their end. With this facility, clients can directly log on to their accounts
from CDC premises and complete their transactions.

Clients are required to bring a request letter duly signed by the authorized
signatory (ies) of the account to avail this facility.

General CDS Training

At the time of induction into CDS, CDC provides a comprehensive training to its
clients (CDS elements) in order to familiarize them with the concept & workings
of the Central Depository System. CDC does not charge clients for this training
and they can request as many sessions as they desire.

Element Training Program

Element Training Program (ETP) is an example of CDC’s focused effort on

educating the market participants about Capital Market mechanisms in relation to
CDC. The Element Training Program (earlier called Management Training
Program) is aimed at training Elements (users) of CDC’s Central Depository
System (CDS) enabling them to receive complete benefits of the System’s
efficiency, and also update them on new developments in the System. It also serves
as a forum to CDS Elements to raise their queries and concerns. Enlightening CDS
Elements about different procedures, e.g., account opening, sub-account
management, deposit, etc. is also part of the program.
The training program educates CDS Elements about the following areas:
• Legal and security issues
• General and operational issues
• Technical and procedural issues
• General Issues pertaining to IAS
• Interactive Voice Response (IVR)
 • Enhanced security measures
• Procedures for handling units of open-end mutual funds
• Main features of CDS
• Current developments
• Enhancements in CDS
• CDS Password Policy
• CDC's Regulations
• Central Depositories Act, 1997
• CDC’s services’ initiatives and structure

DIRECT TRANSACTIONS

DEPOSIT OF ELIGIBLE SECURITIES INTO THE CDS

Securities of Issuers which have been declared as eligible securities are

brought into the system through this functionality. The deposit request
transaction can be initiated by an Account Holder/Participant either on
behalf of his client or on his own behalf and will result in the
cancellation of the security certificate in the name of the current owner
and an increase in the CDC’s nominee holding in the Members’/Security
Holders’ Register of the Issuer.
All categories of Account Holders/Participants, i.e., stock brokers;
banks/financial institution, and institutional investors will be able to
deposit security certificates.
To give the user an overview, an outline flow-chart of the procedures
relating to Deposits of Registered Form Securities into the CDS is given
below:
Detailed Procedures

The detailed procedures for the deposit of security certificates into the Central
Depository System are as follows:
1. Account holder/Participant will fill out a four copies of Securities Deposit Form
which contains, inter alia, the following data elements:
⎯ Account Holder/Participant Id
⎯ Account Holder/Participant Name
⎯ Security Id
⎯ Security Name
⎯ House/Sub-account Id
⎯ House/Sub-account Name
⎯ Issuer/Transfer agent Id
⎯ Issuer/Transfer agent name
⎯ Folio No. (multiple)
⎯ Certificate No. (multiple)
⎯ Distinctive Nos.— from (multiple)
⎯ Distinctive Nos.— to (multiple)
⎯ No. of securities (multiple)
⎯ Account Holder/Participant/authorized agent’s signature

In addition to the above the Securities Deposit Form has fields which the
Issuer/Transfer agent (R/TA) will use to indicate whether a particular security
certificate has been rejected or accepted and, if accepted, cancelled
The Securities Deposit Form also contains a declaration, to be signed by the legal
owner of the securities being deposited, stating the fact that he is indeed the owner
and that the details given on the form are correct. The objective of this declaration
is to provide protection to the Participant against possible subsequent claims
relating to the securities in question.
A sample of the Securities Deposit form is given below for the user’s guidance.
This sample contains all the data fields mentioned in the description above.
2. Although distinctive numbers of the securities being deposited are entered on
the Securities Deposit Form, these numbers are not entered into the Central
Depository System at any stage. The objective of putting them on the form is to
provide an audit trail back to the original securities should this be found
necessary at a later stage.
3. Relevant security certificates and the signed transfer deeds accompanying them
will be attached to the Securities Deposit Form. The Account
Holder/Participant will enter the name of the CDC as the transferee.
4. Account Holder/Participant will then key in the data to the system using the
form as the data entry document.
5. The Issuer/Transfer agent (R/TA) will mark the appropriate spaces in the
Securities Deposit Form, indicating against each security certificate whether it
has been accepted or rejected. The ‘Accepted’ column on the form will contain
a ‘4’ and the ‘Certs. Cancelled’ column will contain the initials of
Issuer/Transfer agent (R/TA) staff member dealing with the transaction if the
certificate mentioned on that line has been accepted. In case of rejection, the
Issuer/Transfer agent (R/TA) will put the appropriate rejection code in the
‘Rejected’ column.
6. Partial acceptance of some of the certificates on a Securities Deposit Form will
be allowed by the system.
7. Cancellation of a deposit request will be allowed until such time the transaction
is not saved by Issuer/Transfer agent (R/TA).
8. While CDC has authorized its Account Holders/Participants to sign transfer
deeds as transferee on behalf of CDC under Regulation 8.1.1. However, if an
Account Holder/Participant wish to authorize any person to sign the transfer
deed on his behalf then he may contact the concerned Issuer/Transfer agent
(R/TA) as to what would satisfy his requirement.
Note: During the Book Closure period for a Security, the System will not
allow Account Holders/Participants to process and post Deposit Request
transactions for that particular Security.
 WITHDRAWAL OF ELIGIBLE SECURITIES FROM
THE CDS

The withdrawal functionality enables Account Holders/Participants to

withdraw securities from the Central Depository System in the form of
physical certificates. This functionality is provided to cater for Account
Holders/Sub-Account Holders who wish to withdraw any securities from
CDS. Securities Withdrawal Form will be completed by an Account
Holder/Participant either on behalf of his client or on his own behalf and
will ultimately result in the issuance of a fresh security certificates in the
name of the transferee in the form and a decrease in the CDC’s nominee
holding in the Members’/Security Holders’ Register of the Issuer.
To give the user an overview, an outline flow-chart of the procedures
relating to Withdrawal of Registered Form Securities from the CDS is given
below:
Detailed Procedures

The withdrawal transaction will be initiated by an investor requesting an Account

Holder/Participant or an Account Holder/Participant to withdraw securities on his
own behalf. The detailed procedures will be as follows:
1. Account Holder/Participant will prepare/receive four copies of Securities
Withdrawal Form which will contain, inter alia, the following information:
⎯ Account Holder/Participant Account Id
⎯ Account Holder/Participant Name
⎯ House/ Sub-account ID
⎯ House / Sub-account name
⎯ Issuer/Transfer agent (R/TA) ID
⎯ Issuer/Transfer agent (R/TA) name
⎯ Security ID
⎯ Security Name
⎯ No. of Securities being withdrawn
⎯ Certificate(s) denominations required
⎯ Account Holder/Participant/Authorised agent’s signature
⎯ Transferee Name
⎯ Father’s/Husband’s name (if applicable / if required)
⎯ Address
⎯ Joint holders (three fields)
⎯ Tax status
⎯ Occupation
⎯ Zakat Status
⎯ Dividend mandate — Bank (optional)
⎯ Dividend mandate — Bank Account # (optional)
⎯ National ID. Card No. (if required)
⎯ Passport No. (if foreign national)
⎯ Date & Place of issue
⎯ Successor Name
⎯ Transferee’s name
⎯ Transferee’s signature — two signatures, one will be cut out by
the Issuer/Transfer agent (R/TA) and used as his signature
of record
⎯ Rejection code (to be filled by the Issuer/Transfer agent (RTA)
in case of Rejection)
⎯ Shareholder category
The relevant data in the top portion of the above form will be input to the system
by the Account Holder/Participant initiating the Withdrawal Request
Transaction. The lower portion of the form contains information, which is of
relevance, as stated above, to the Transferee’s folio in the Register of
Members/Security Holders of the Issuer. It will be the responsibility of the
Transferee to see that this portion is correctly filled in Account
Holder/Participant.
3. The Issuer/Transfer agent (R/TA) will verify that the Securities Withdrawal
Form is properly completed and will then execute the Withdrawal Approval
transaction. The system provides for a two-stage confirmation process i.e.,
‘update’ and ‘post’. This is a control feature, which the Issuer/Transfer agent
(R/TA) can use if he wants to approve withdrawal requests in one step and issue
relevant security certificates in another.
4. Partial approvals of withdrawal transactions by R/TA will not be allowed.

Note: During the Book Closure period of a Security, the System will not allow
Account Holders / Participants to process and post Withdrawal Request
transactions of that particular Security.
FREE DELIVERIES

The term ‘free deliveries’ applies to all book-entry deliveries of securities, which
take place without any corresponding movement of cash on the system.
An Account Holder/Participant is only allowed to deliver securities out of his
Account Family. The security controls built into the system do not allow an
Account Holder/Participant access to any Account Family other than his own.
Participants are required to deliver securities out of sub-accounts only after
obtaining written instructions from their respective clients.
This category of transaction also covers book-entry deliveries between an Account
Holder/Participant’s main account, house account and the sub-accounts maintained
on the system.
The Free Delivery transaction does not require separate initiation and confirmation
stage. The transaction is completed when an Account Holder/Participant enters
data into the system asking for securities to be delivered from his account to
another account. The Account Activity Report produced by the system on request
provides the necessary documentation and audit trail of the transaction. For the
sake of their own documentation, Account Holder/Participants can get their clients
to fill out standard forms when giving instructions to the Account
Holder/Participant.
If the recipient of the securities being delivered does not wish to accept them, he
can execute another free delivery to reverse the impact of the original transaction.
Once an Account Holder/Participant has delivered securities from his account to
another Account Holder/Participant’s account, the transaction can only be reversed
by the recipient delivering them back.
To give the user an overview of free deliveries, a flow chart of the procedures is
given below:
Free deliveries are executed in the CDS by means of the four following options:
• Intra Account Movement
• Bulk Intra Account Movement
 • Inter Participant Free Delivery
• Bulk Inter Participant Free Delivery

Each of the above options is described in detail in the paragraphs that follow.

Intra Account Movement

The Central Depository System provides the facility to Account
Holders/Participants to transfer securities between accounts within their control.
Securities delivered to an Account Holder/Participant from another Account
Holder/Participant are always delivered to his Main Account. It is the Participant’s
responsibility thereafter to transfer such deliveries, to the respective account under
his umbrella using the Intra Account Movement transaction. Similarly, before he
can deliver securities to the accounts of other Account Holder/Participants, the
Account Holder/Participant must transfer securities from the respective house, sub-
account under his Account Family to his Main Account using the same transaction.
For transfer from Sub-Accounts/clients written instructions of the Sub-Account
Holder/clients is required. It must be borne in mind that the Intra Account
Movement covers only free deliveries, i.e., those not involving a corresponding
movement of cash on the system.
While making intra account movements to handle clients’ securities the Account
Holder/Participant should strictly comply with the provisions of Section 24 of the
Central Depositories Act, 1997.

Bulk Intra Account Movement

The Bulk Intra Account Movement transaction has been provided in the CDS to
cater for the need for posting or deleting a large number of previously entered but
un-posted Intra Account Movement transactions, instead of having to post each
transaction individually. It is purely a device for saving time and effort.

Inter Participant Free Delivery

This transaction is used to make Free Deliveries of securities between one Account
Holder/Participant and another. As stated above Free Deliveries are transfers of
securities between one account and another, which do not involve corresponding
cash movements on the system. Inter Participant Free Deliveries can only be made
through an Account Holder/Participant’s Main Account. In other words, if an
Account Holder/Participant has to transfer securities held in one of his client’s
accounts to the account of another Account Holder/Participant, he first has to make
an intra-account Free Delivery of those securities into his Main Account and then
transfer them.
In case where the Account Holder/Participant wants to make free delivery
transaction in favour of an Investor Account. He is required to specify Investor
Account Services Id and the relevant account number.

Bulk Inter Participant Free Delivery

The bulk inter Participant Free Delivery transaction has been provided in the CDS
to cater for the need for posting or deleting a large number of previously entered
but un-posted Inter Participant Free Delivery transactions, instead of having to post
each transaction individually. It is purely a device for saving time and effort.

PLACING SECURITIES UNDER PLEDGE

An Account Holder or a Participant, acting either on his own behalf or on behalf
of his client, can place securities under pledge to an Eligible Pledgee. Prior written
authorization from sub-Account Holders/clients is required in case of pledge
through sub-account. Placing securities under pledge results in the securities being
flagged as no longer available for handling until such time as they are released
from pledge.
To give the user an overview, an outline flow-chart of the procedures relating to
Placing Securities under Pledge is given below:
Detailed Procedures
The detailed procedures for placing securities under pledge is as follows:
1. An Account Holder or a Participant, either on behalf of a client or on his own
behalf, fills out three copies of Pledge Form which will have, inter alia, the
following data elements :
⎯ Account Holder/Participant ID, Account # & Account type
⎯ Account Holder/Participant Name
⎯ Pledgor Name (if other than Participant)
⎯ Sub-account # . (if applicable)
⎯ Group / Contract ID
⎯ Pledgee ID.
⎯ Pledgee Name
⎯ Pledgee Branch (if bank)
⎯ Security ID(s) (multiple)
⎯ Security Name(s) (multiple)
⎯ No. of securities (multiple)
⎯ Pledgor Signature
⎯ Account Holder/Participant Authorised Signature

A sample of the Pledge Form is given below for the user’s guidance. This sample
contains all the data fields mentioned in the description above.
The Eligible Pledgee creates a new group for the pledge using the Open Group
transaction
3. The Account Holder/Participant enters the pledge transaction into the system by
using the Pledge form as the basis for data entry.
4. The Account Holder/Participant sends one copy of the Pledge form, duly signed
by the Account Holder/Participant and his client (in case securities are being
pledged on behalf of a client) under whose instructions the securities are being
pledged to the Eligible Pledgee.
5. The Eligible Pledgee retains the signed form mentioned above for its own
record.
6. One copy of the Pledge Form is retained by the Account Holder/Participant and
the third copy is given to the client (in case securities are being pledged on
behalf of a client).
7. Reversals of Pledge transactions are not allowed. The only way to reverse a
Pledge transaction is to put through a Pledge Release Transaction, which is
described below.
8. The Eligible Pledgee is to obtain printed reports from the CDS showing the
position of securities pledged to him by various Account Holder/Participants of
the Depository and/or their clients.
9. In the case of Pledgee Banks, the Eligible Pledgee(s) are the designated
branches of that particular bank, which have been given Pledgee status by the
CDC.

RELEASING SECURITIES FROM PLEDGE

Securities, which have been placed under Pledge, can be released only by Eligible
Pledgee. It is not part of the CDC’s functions to verify that instructions received
from the Eligible Pledgee, either for the release or for the call of pledged securities,
are authentic. In other words, if an Eligible Pledgee gives instructions to release
certain pledged securities, the CDC will not verify that the obligation of the
pledgor has been discharged or that alternate collateral has been furnished.
 As soon as securities have been released from pledge they will be available to the
Pledgor for handling.

PLEDGE CALL
Securities, which have been pledged can be transferred to any other account at any
time by the Eligible Pledgee or transferred to any other account in CDC at any
time by the Eligible Pledgee for handling under his instruction. The CDC does not
require the Eligible Pledgee to establish that the Pledgee has defaulted or otherwise
created a condition whereby a pledged call may be made.

How CDC works with Stock Exchange?

STOCK EXCHANGE

A Transaction of Securities B
(Sell (Buy
er) er)
Securities transfer request Securities transfer intimation

CDC

CDS
A’s Securities transfer from A’s a/c to B’s a/c B’s
Account Account
 HOW CDC WORKS WITH STOCK EXCHANGE?
CDC acts as a window for stock exchange. Transactions take place between two
investors in stock exchange. CDC just transfer the securities from One Investor
account to other Investor Account on behalf of those investors.

There are two parties: party A and party B, Both have their account s in CDC,
✔ A transaction takes place between A and B at stock Exchange.
✔ A sells his securities to B.
✔ A sent request to CDC to transfer his shares to B.
✔ In CDS, Shares are transferred from A’s account to B’s account
✔ Intimation about transfer of securities are sent to both parties.

LEGAL FRAMEWORK

Central Depository Company of Pakistan Limited was formed under Central Depositories Act
1997 which was passed on June 10, 1997. Subsequently, Central Depository Company of
Pakistan Limited Regulations were developed and approved by the Securities and Exchange
Commission of Pakistan.

The establishment of a Central Depository System required changes in the legal framework.
Before Central Depositories Act 1997, registered owner of securities were recognized as
beneficial owner by law. Therefore, all the rights of the security holder (benefits & voting rights
etc.) were vested with the registered owner which was not suitable to the depository structure.
The Central Depositories Act 1997 made it possible to recognize the beneficial owner of
securities on the basis of holdings in depository accounts. In the current depository structure, all
securities are registered in the name of Central Depository Company of Pakistan Limited in the
capacity of a nominee, the account holders are considered to be the beneficial owners of
securities on the basis of their holdings in CDS accounts.
RELEVANT LEGISLATION:
Central Depositories Act, 1997
Central Depository Company of Pakistan Limited Regulations as of November 6, 2009
Companies Ordinance, 1984, and
Zakat & Ushr Ordinance, 1980
OTHER REGULATIONS:
The Anti Money Laundering Rules 2008
The Anti Money Laundering Regulations 2008
The Anti Money Laundering Ordinance 2007

TECHNICAL INFO
CDS NETWORK:
CDC's network is spread across the main trade hub cities of Pakistan. The sites are
interconnected through highly reliable WAN links. The reliability of links is backed up with
multiple levels of redundancy. In case of a link failure, the fallback to backup link is completely
unnoticeable. Along with reliability and redundancy, security is one of the most important
concerns for CDC. Confidentiality and authenticity are ensured for all transactions that are
carried over the network.

Stock users are connected through resilient and dedicated links while clients other than stock
users (external clients) connect to the CDC network through dial-in to our local point of presence
by using Pakistan Telecommunication Corporation Limited’s Public Switched
Telecommunication Network (PSTN). Sufficient numbers of simultaneous dial-in lines are
maintained at various sites to allow first call connection. We also have reliable and high
bandwidth metro fiber connectivity for external clients.
CDS SOFTWARE:
CDS is a menu-driven client/server application system. The Graphic User Interface based
proprietary client runs on a Microsoft Windows based PC. The Client neither stores users’ data
nor executes the application logic; instead the customer data as well as application logic resides
on the central server managed by CDC. The installation and set-up of the proprietary CDS Client
at customer site is supported by the Customer Network Support Services.

The application is being continuously enhanced in-house to include more functions and features.
Standards based Software Engineering process is being implemented to ensure uninterrupted
availability of the system and the integrity of the data.
The software updates for CDS Client are delivered over the CDC network for efficient
configuration management.

CDS HARDWARE:
CDS Client is an Intel based PC with a LAN card for the users at local stock exchange and a
standard modem for the remote users.

Minimum hardware Configuration for CDS Applications

Component Requirement
Processor Intel Pentium IV 3GHz or above
RAM 512 MB or above
Hard Disk Atleast 5 GB Free
Serial Port/USB for External Modem 1 at least
Printer High quality/speed Laser printer
Mouse 2/3 Buttons (PS1 or PS2 connector type)
Keyboard 101/104 Keys (PS1 or PS2 connector type only)
Keyboard Interface on Motherboard PS1/ PS2
Monitor 15” SVGA Color Monitor with 1024x768 Display Resolution
VGA Card 16MB or above Graphics Card on AGP/PCI slot
CD ROM 50 x or above
Brand Branded PC
Operating System Configuration
Minimum Requirement
Microsoft Windows 2000 Professional/ Windows XP Professional (Licensed)
with latest Service Pack & patches
Internet Explorer version 6.0 or above
Acrobat Reader 7.0
Connectivity Option
(NIC for Stock Exchange Users)
Manufacturer Type
Any Brand RJ-45 Connector Type (10/100 Mbps)
Modem for Remote Users/ Dialup Users
Minimum Requirement
US Robotic / Zoltrix 56 Kbps (Internal or External)/ ISDN Modem / ISDN BRI

SECURITY MEASURES:
To ensure utmost security of information, multiple levels of protection have been deployed to
create an impregnable system for hackers and unauthorized users. Some of the major security
measures include:
• Terminal Authentication – A dual factor authentication protocol comprising of a 4 digit
pin number and a 6 digit automatically generated RSA passcode.

• Virtual Private Network (VPN)

• Various Firewalls

• Segregated User Level Authorities

• CLI binding Servers - The central servers comprise of powerful, fault tolerant and
redundant servers with large storage devices and fast archival systems at the primary site.

PERFORMANCE AT A GLANCE

STATISTICS

On June 30, On June 30, On October 31,

Performance at a glance
2008 2009 2009
Number of shares in CDS (in Bn) 55.69 65.08 70.10
Market Capitalization of shares in 2.097 1.148 1.452
 CDS (in Trillion)
% of shares in CDS w.r.t. total share
80.10% 83.33% 84.97%
capital
Total number of Investor Accounts 43,985 51,984 52,865
Number of Securities in Investor
15.412 20.199 20.151
Accounts (in Bn)

FEE SCHEDULE:

In spite of the high inflationary pressures, CDC has not revised its fee structure. In fact, a
friendlier tariff package has been introduced. This is inline with our prime objective that is to
cater to the needs of industry growth.
The fee structure for trustee services is as follows:
Trusteeship Tariff Structure for Voluntary Pension Schemes
Net Assets
(Rupees) Tariff
From To
Rs. 0.3 million or 0.15% p.a. of Net Assets, which ever is
1 1 billion
higher
Above 1 Rs. 1.5 million plus 0.10% p.a. of Net Assets, on amount
3 billion
billion exceeding Rs. 1 billion
Above 3 Rs. 3.5 million plus 0.08% p.a. of Net Assets, on amount
6 billion
billion exceeding Rs. 3 billion
Above 6 Rs. 5.9 million plus 0.06% p.a. of Net Assets, on amount
-
billion exceeding Rs. 6 billion

GLOBAL TERMINAL

All CDS elements are required to access CDS through their authenticated terminals only. For the
benefit of its clients, CDC has provided computer terminals at its premises to be operated by
clients (all CDS elements), in case of any technical problem at their end. With this facility,
clients can directly log on to their accounts from CDC premises and complete their transactions.

Clients are required to bring a request letter duly signed by the authorized signatory (ies) of the
account to avail this facility.
Please feel free to contact our Customer Support Services at 0800-CDCPL (23275) or
info@cdcpak.com for detailed requirements related to Global Terminal Facility.

INTERNATIONAL LINKAGES

CDCPL is an active member of the following regional and international bodies / entities:
ACG – Asia-Pacific Central Securities Depository Group:
In 2006, CDC hosted the 10th Annual General Meeting of the Asia Pacific Central Securities
Depository Group (ACG), which was attended by around 60 delegates from 18 countries of the
region as well as chairpersons of major financial regulatory bodies of the country. CDC was also
the ACG Secretariat for 2007.
ANNA – Association of National Numbering Agencies
CDC is the sole National Numbering Agency (NNA) for Pakistan and issues ISIN to standardize
identification of local securities for trading and settlement in the country and abroad. ISIN
(International Securities Identification Number) is the unique identification number assigned to
identify securities worldwide.
ISSA – International Securities Services Association.
FEAS – Federation of Euro-Asian Stock Exchanges.
SAFE – South Asian Federation of Exchanges.

Capital Market Development

CDC has been the leading force in Capital Market development through
initiatives for the creation of an efficiently functional marketplace and making a
remarkable difference to how it operates. Due to CDC’s efforts, synergy among the
top 6 constituents of the Pakistan Equity and Capital Markets has been achieved.
These are Securities and Exchange Commission of Pakistan(SECP), State Bank of
Pakistan, country’s three stock exchanges – Karachi Stock Exchange(KSE) in
particular, National Clearing Company(NCCPL), Central Depository
Company(CDC) itself and most importantly, the market, which comprises of
brokers, AMCs, mutual funds and investors.
Genuinely speaking, CDC has directed all its efforts towards integrating people,
processes and systems. We have focused primarily on empowering the people,
safekeeping their assets and investments and secondarily on the improvement of
markets and systems.

National Clearing and Settlement System(NCSS):

Formulated by the CDC management, National Clearing Company operates
the National Clearing and Settlement System (NCSS), another capital market
infrastructure mechanism, providing settlement and clearing facilitates to all three
exchanges for trades in eligible securities.
Clearing and settlement are among the most important aspects in the operation of
the securities business. It is the process of reporting, matching, correcting
securities transactions and the ultimate delivery or receipt of net balances.
Formerly managed by the CDC management, NCCPL is registered as a separate
legal entity and now independently manages the National Clearing and Settlement
System (NCSS).

Investment Road Shows:

With a vision for wide scale development of the Pakistani Capital Market
and to educate investors throughout Pakistan, Central Depository Company
launched a series of Investment Road Shows in 2005. These target-driven events
have now transformed into a platform for the capital market leaders and executives
to meet and interact with the investors and stakeholders. The road shows have
become a channel in educating the investors about the workings of Pakistani
Capital Market & investment opportunities and clearing misconceptions about
associated risks. These events have also been helpful in attracting household
savings from the common investors towards more productive, economy-building
causes.
Choronology of Events:
Sialkot February 2005
Peshawer March 2005
Hyderabad June 2005
Quetta July 2005
Multan September 2005
Sukkur January 2006
Faislabad March 2008
Gujeranwala May 2008
Lahore October 2009
Capital Market Days:
Apart from covering 8 local cities in Pakistan, CDC has taken
the road shows to Abu Dhabi and Dubai in 2006 and held similar events in London
(in collaboration with London Stock Exchange) and in New York (in collaboration
with Citibank and The Bank of New York Mellon) in July 2007. These events by
the name of Capital Market Days have played a key role in foreign-investor
relationship development and increasing the investment base & foreign investment
volume in Pakistan. These events have enabled face-to-face dialogue between
corporate entities and fund managers/institutional investors who are interested to
invest in the country.

CDC Access
Introduction:
CDC Access- Worldwide Access to CDC Accounts
In a drive to increase customer convenience for investors to benefit from electronic
custody & settlement of securities, CDC has started multiple channels for investors
to access their electronic securities portfolio through its innovative service-range
CDC customers can access their account information through services, which
include IVR (Interactive Voice Response), Web and SMS facilities.
• IVR is a round-the-clock Interactive Voice Response system supported by a
state-of-the-art call centre, toll free number 0800-CDCPL (23275) and
dedicated customer support staff.
• CDC Access – Web enables Investor Account holders to access their
account information through https://www.cdcaccess.com.pk
• CDC Access– SMS gives an added level of convenience to investors by
providing them their account info on their mobile screens.
• Web Kiosk and IVR Phone Booth are two especially tailored facilities for
CDC’s walk-in customers at the CDC House (Shahra-e-Faisal, Karachi),
enabling them to access https://www.cdcaccess.com.pk through the touch-
point kiosk machine installed in the waiting lobby. Similarly, they can
access the CDC Access – IVR and / or talk to a customer relationship officer
through the nearby IVR Phone Booth.

Your CDC Relationship Number:

To register for availing CDC Access – IVR, Web and
SMS services, you would be required to fill in your CDC Relationship Number on
the CDC Access – Registration Form. Your CDC Relationship Number is the
combination of Investor Account Services(IAS) ID and your account number.

Generation of T-Pin:
• Call at 0800-CDCPL (23275).
 • After selecting the language preference, press 1 for self service.
• Enter your 12 digit CDC – Relationship Number (which is a combination of
IAS ID and your Investor Account Number)
• Generate your 4 digit T-Pin.

CDC Access - Registration Form:

Please click on the link to download the Registration Form The form can also be
obtained from the Customer Support Front Desk at CDC Offices.

Activation of CDC Access - Services:

Submit completely filled Registration
Form duly signed by the authorized signatory(ies) at the CDC Customer Support
Front Desk or send it to the CDC Office where you are maintaining your Investor
Account. Also affix the company stamp in case you are a corporate client.

CDC Access - Interactive Voice Response(IVR):

CDC Access – IVR is a round-the-clock

Interactive Voice Response system supported by a state-of-the-art call center, toll
free number and dedicated customer support staff.
For callers in Pakistan, this facility is provided through 0800 – CDCPL (23275).
Overseas callers can dial +9221-4326038. The IVR service is available 24/7 while
the dedicated customer relationship representatives are available for assistance
during office hours (9am to 6pm PST – Monday to Saturday). The key activities
provided through CDC Access – IVR service are as follows:

• Balance of a specific security

• Balance of last three active securities
• Balance of all securities
• Account Activity Report
• Cash Balance
• Cash Activity Report
• Requisition of Transaction Order (T.O) Book
• Change of contact numbers
CDC Access - SMS:

CDC Access – SMS gives an added level of convenience to investors by providing

them their account info on their mobile screens through short messaging service
alerts.
CDC Access – SMS service is a one-way account information facility provided on
national cellular networks only. Information about the following activities is
provided through this service:
• Approval and rejection of deposit transactions
• Transfer of book-entry securities (delivery out) from your IAS Account
• Credit of corporate action entitlements such as, bonus/right shares and new
issues
• Pledge transactions pertaining to your account
• Dispatch of Transaction Order Book (T.O. Book)
• Change in your account’s registration details
• Change of your CDC Access – IVR T-PIN
• Reminder for depositing cash to avoid inconvenience
• Due date for the annual fee
• Listing/Delisting of securities in CDS
• Change in the Security Name and Symbol
CDC Access – WEB
• Registration Details of your Investor Account

Account Balance(For any given date):

• Securities Balance – Balance of securities held in your account

• Cash Balance – Cash available in your account for transactions

Account Activities(For any given period):

• Securities Activity – Detail of securities’ movement pertaining to your
account
• Cash Activity - Detail of cash deposited and cash consumption for
transactions pertaining to your account
 • Pledgor Balance / Activity Report - Detail of securities pledged in your
account and their subsequent ‘Call’ or ‘Release’ by the respective Pledgee

Other Reports:
• Deposit Report – Detail of deposit of physical certificates in your account
for conversion to electronic book-entry form
• Withdrawal Report - Detail of withdrawal of securities from your account
in the form of physical certificates
• Billing Information – Detail of amount charged against transactions &
other services pertaining to your account

Service Request:
• Service Request Status - Detail of services requested by you and their
status
• New Service Request - Facility to make service requests pertaining to your
account, like changes in Registration Details or request for a new
Transaction Order (T.O) Book, etc.

General Information:

• Securities List Price – List of CDS Live securities with their closing market
value as of the last trading day of the previous month, at the Karachi Stock
Exchange (Guarantee) Ltd. (basis for calculating ‘Custody Fee’ according to
IAS Schedule of Fees)
• Corporate Action Diary - Detail of Bonuses, Right Issues, Cash Dividends,
Mergers and other Corporate Announcements
• Notices & Circulars - General CDC-related updates