Central Depository Company of Pakistan Limited
Incorporated in 1993, Central Depository Company of Pakistan Limited (CDC) is a public limited
(unlisted) company and the sole depository in Pakistan handling the electronic settlement of
securities transactions carried out at all three stock exchanges of the country.
CDC Pakistan started operations in September 1997, currently managing approximately 99% of
the market settlements in book entry form and providing depository services to a large number
of Capital Market participants which includes Brokers, Asset Management Companies, Banks
(including Custodian Banks), Issuers/ R/TAs and general retail investors.
The Company also links Issuers & Registrars of securities and Investors for the purpose of
executing corporate actions like disbursement of corporate benefits (cash dividends, bonus
shares etc) and processing mergers and splits.
The aim of CDC is to continue functioning 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.
The Company’s shareholders include financial institutions primarily stock exchanges and banks.
Regulated by the Securities and Exchange Commission of Pakistan (SECP), CDC Pakistan has
offices in Karachi, Lahore and Islamabad.
For the year 2012-13
Diversified Services Portfolio:
CDC Pakistan was 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 other
services that are beyond the traditional depository domain.
The Company has diversified its services portfolio with the view of benefiting country’s capital
market and for its sustainable growth:
Central Depository System
Central Depository System (CDS) is an electronic book entry system built on a well-
defined legal framework laid down by the Securities & Exchange Commission of Pakistan
(SECP). The system records and maintains 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. Investors can have
their securities, subscribed in IPOs, directly credited to their accounts in electronic form.
The system also facilitates the processes of Merger, Demerger and Consolidation / Sub-
Division. It manages Ordinary & Preference shares, Term Finance Certificates (TFCs),
Bonds, Sukuk, Modaraba and Open-End & Closed-End funds.
Now in its 16th
year of operation, the securities under the custody of CDS have crossed
one hundred billion Pakistani Rupees with its market value touching approximately Pak
Rupee 3 trillion.
As of June 30, 2013
Investor Account Services
Investor Account Services (IAS) offered by Central Depository Company (CDC) allows
retail investors to directly open and maintain accounts with CDC 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.
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. They can also always remain
updated about their Account information using free-of-cost CDC Access services which
comprise of Web, IVR, SMS, eStatements and eAlerts.
Trustee and Custodial Services
CDC Pakistan, realizing the importance and service demands of the mutual fund industry
started Trustee & Custodial Services in 2002. The Company, through its proactive
approach and high standards of service, has become the market leader with 85% share
in the private sector providing services to various mutual funds and discretionary
portfolios managed by Asset Management Companies and Pension Fund Managers.
Since the start of this operation, the CDC Trustee and Custodial Services has become the
preferred choice due to its excellent service and the level of business understanding
possessed by its staff.
The prime responsibility of CDC as the trustee and custodian is to take into its custody
all the assets of the Collective Investment Scheme & funds and hold them in trust on
behalf of the unit & certificate holders. Additionally, CDC carries out the instructions of
the asset management company, investment advisor and 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
Share Registrar Services
CDC Pakistan offers Share Registrar Services to facilitate Issuers and their shareholders.
The service caters to the growing need of more comprehensive and efficient Share
Registrar Services in the Pakistani Capital Market. It provides a one window solution
backed by a country-wide branch network, state-of-the-art IT infrastructure,
independent Legal and Internal Audit departments ensuring statutory and regulatory
CDC Pakistan has developed a high-tech Share Accounting System with an exclusive
Authority & Security Management System and workflow components. The service offers
a composite portfolio of maintenance, registration, verification and direct customer
dealing & interaction.
IT Minds Limited [Information Technology based consultancy & implementation
CDC Pakistan launched IT Minds (a wholly owned subsidiary of Central Depository
Company) as part of its business diversification strategy to hedge risk by not relying
upon one industry and to create synergy and efficiency in response to the increasingly
crucial environmental and political considerations.
ITMinds provide innovative e-business solutions to companies in partnership with IBM,
Microsoft and Gemalto. The company specializes in Capital Market & Enterprise
With the novel use of technologies and expertise, ITMinds is all equipped to deliver high
quality solutions in the areas of IT automation, compliance, security and management.
Centralized Information Sharing Solution for Insurance Industry
CDC Pakistan has developed a Centralized Information Sharing Database for the Life
Insurance and Takaful industry. The system will facilitate greater efficiencies and
transparency within the Insurance Industry by enabling sharing of critical information
including acceptance of claim and underwriting of hazardous risks.
The system will be implemented in two phases, the first phase of which will cover the
sharing of policy holders’ information among the Insurance companies on a Centralized
database while the second phase will result in its extension for establishment of a
comprehensive Insurance Repository in Pakistan through which insurance policies can
be stored in dematerialized form.
Investment Portfolio Services
CDC Pakistan is the only non-banking institution entrusted by the State Bank of Pakistan
with the membership of Pakistan Real Time Interbank Settlement Mechanism (PRISM)
and Real time Gross Settlement (RTGS). The membership will enable CDC to provide
custody and settlement services of Government Securities. The current range of GOP
debt securities include Pakistan Investment Bonds, Treasury Bills and Ijrah Sukuks,
issued by the State Bank on behalf of the Government of Pakistan. Previously these
securities were only available by the Bank to a certain category of corporate clientele
and the sale was directly handled by Bank’s Treasury Department.
General investors will be able to invest in government securities by opening Investor
Portfolio Securities (IPS) account with CDC through partner brokers. IPS account will
enable retail investors to maintain custody of their investing securities directly with CDC
and avail high returns with zero investment risk.
Back Office Accounting for Mutual Fund Industry
CDC Pakistan is in final phases of launching Back Office Accounting System for the
Mutual Fund Industry. The system will facilitate Mutual Fund companies to outsource
their non-core back-office functions such as fund accounting and valuations to CDC
including the calculation of the net asset value (NAV).
Currently, Mutual Fund companies in Pakistan have their own staff doing fund
accounting and valuations which is tedious and prone to several errors and litigation
risks. With the inception of the system, mutual fund companies will be able to safeguard
their interests by outsourcing their back office functions including settlement, custody,
accounting and reporting.
Business Continuity Program:
CDC is one of the first few Pakistani institutions to establish a comprehensive Business
Continuity Program (BCP) to ensure readiness of responding to disaster situation. Similarly,
another major business continuity initiative of digitization of all critical physical records to
ensure their safety has been taken alongside.
ISO 27001 Certification:
CDC Pakistan is certified with the prestigious ISO 27001 standard, the highest Information
Security Management System (ISMS) certification in the world for its overall operations
including functional, technical and legal aspects.
CDC Pakistan is amongst one of the most active entities in the country doing corporate
philanthropy whereby it contributes 2.5 percent of profit before tax to various charitable
organizations providing healthcare, education as well as doing vocational activities. The
Company also encourages its employees to participate in voluntary activities which it considers
a duty as a responsible corporate citizen.
For further information, please visit www.cdcpakistan.com