The Pakistan Central Depository Company (CDC) is the sole securities depository in the country. It also provides trustee and custodial services for open-ended funds and voluntary pension schemes. In addition, it has launched a digital platform for the mutual funds sector. It is currently not listed on the Karachi Stock Exchange.
CDC is the sole securities depository in Pakistan
As the sole securities depository in Pakistan, CDC is a vital player in the financial market. Its electronic book-entry solution for securities and operations has helped revolutionize the Pakistan Capital Market. The company has two decades of operational experience and has consistently spearheaded digitization efforts. Its technology solutions are state-of-the-art and incorporate the latest security features.
The CDC is a public limited company that was incorporated in 1993. Since then, it has been the backbone of the Pakistan Capital Market, acting as the ultimate custodian of securities. CDC is the sole entity that handles book entry and electronic settlement of transactions at the Pakistan Stock Exchange.
CDC is also a member of the Asia-Pacific Central Securities Depository Group (ASCDG), which is a global network of securities depositories that cooperate to improve their services. CDC is owned by the PSX, which controls almost 40pc of its shares. Other major shareholders include MCB Bank and HBL. Apart from its role as a securities depository, the CDC also provides BPO and back-office services for the mutual fund and insurance industries.
It offers trustee and custodial services for open ended funds and voluntary pension schemes
Pakistan Central Depository Company (CDC) is the sole securities depository company in the country and offers a diverse range of services beyond the traditional depository domain. It offers trustee and custodial services for closed ended funds and voluntary pension schemes, share registrar services, back office functions and BPO services to the mutual fund industry and a centralized information sharing solution for the insurance industry.
CDC also offers trust and custodial services for open ended and closed ended funds, pension schemes, and other funds. CDC provides trust services to unit holders, while maintaining strict regulatory compliance and confidentiality. CDC has over eighty percent market share in Net Assets and is one of the largest providers in the Mutual Fund industry.
It may be listed on Karachi Stock Exchange
If you want to invest in Pakistan stock market, you may need to open an account in a Pakistan Central Depository Company CDC. This account can be fed with remittances from abroad or by a transfer from another foreign currency account. You can use this account to buy any share.
As a member of the Asia-Pacific Central Securities Depository Group (APCSDG), CDC facilitates the exchange of information and mutual assistance among its member securities depositories and clearing organizations. Its CEO Muhammad Hanif Jakhura served as CEO from 2002 to 2017. He was elected as the ACG’s executive committee chairman for the years 2014-2016 and served as the ACG’s secretariat for that period.
As a member of the SECP, the CDC has offices in Karachi, Lahore, and Islamabad. It is also ISO/IEC 27001:2013-certified for information security management. Moreover, it is an Approved Employer of various professional bodies in Pakistan.
Before becoming a member of PSX, an investor must first open an Account with a brokerage firm. After opening an Account, the brokerage firm will issue a Client Identification Number (CIN). This number will be used for all transactions and trades within the PSX. The Central Depository Company Limited CDC is responsible for the settlement of trades. Its members are brokerage firms who are part of the ecosystem that makes the exchange possible.
The process is simple. The Participant must submit original documents, such as a certificate of ownership, to the company. The company will then update the record of the non-resident’s holding and furnish the update to the designated Authorised Dealer. This process is called the repatriation process.
