Investor Account Services allows retail investors to directly open and maintain accounts in Central Depository System (CDS) for safe custody and electronic settlement of securities. Earlier, to settle the securities through CDS, 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.
Investor accounts are safe and secure as they are directly maintained by CDC • Investor Accounts are operated directly and only on written instructions of investor(s). Therefore, investors have direct and complete control over their book-entry securities • Account balance and other information is available through CDC access Interactive Voice Response (IVR), Web service and SMS alerts.
The following are eligible to open Investor Account with CDC: 1. Individuals (Pakistani nationals as well as foreigners) who; • 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 undischarged insolvent. 2. Other than Individuals such as corporate entities, societies etc.
To open an Investor account, you need to fill out the Investor Account Opening Form, which can be obtained from the CDC Investor Account Services department located in Karachi, Hyderabad, Lahore, Faisalabad and Islamabad. The form can also be downloaded from the CDC Website (www.cdcpakistan.com) or through written request or by calling CDC Customer Support Services at 0800 – CDCPL (23275).* You are required to submit the application form along with the other required documents. Once your account has been opened you will be provided with an Account Opening Package. Physical presence of the Account Holder and Joint Account Holders, if any, is necessary at the time of account opening for residents of the cities where CDC offices are present. In other cases, the copy (ies) of CNIC (s) being submitted must be signed by the manager of any Commercial Bank or by the nearest embassy in case of Non-Resident Pakistanis and Foreigners. * For overseas callers: +9221-4326038
Account Opening Package provided on opening an Investor Account includes the following items: • Transaction Order (T.O.) Book • Account Setup Detail (registration details) • CDC access – IVR and Web User Guides / Flyers and SMS • CDC access Registration Form.
Individual accounts are opened within 24 hours whereas corporate accounts are opened within 48 hours (Incase of cheque, the account will be opened after its clearance) after which you can start using the services of IAS.
As many as four persons can jointly open an account. Once the account is opened, the joint account holders can neither be added nor removed.
CDS is an Electronic Book Entry System: • To record & maintain securities • To register transfer of securities. The system changes the ownership of securities without any physical movement /endorsement of certificates & execution of transfer instruments.
At the time of book closure for corporate action, the records of the depository are considered an extension of the Members' Register maintained by the respective Company Registrar. In other words, the detailed break-up of the CDC's nominee shareholding is obtained from the records of the depository and shareholder entitlements like bonus, rights, etc. are directly credited to the respective accounts on the basis of the list of beneficial owners provided by CDC. CDS also facilitates the process of Merger, De-merger and Consolidation / Sub-Division in an efficient manner.
Securities can be withdrawn in the form of physical certificates from CDS through withdrawal transaction. This facility is provided to cater to those investors who prefer to keep physical security certificates.
Eligible Pledgees are capable of calling pledged securities in their own account or in any other account in CDS.
Eligible Pledgees can release securities, which have been placed under pledge in their favour. As soon as securities are released from pledge, they become available to the Pledgor for further transactions such as a delivery, withdrawal or another pledge.
An Account Holder or a Participant, acting either on his own behalf or on behalf of his client, can place securities under pledge in favour of an Eligible Pledgee. Placing securities under pledge results in the securities being flagged as no longer available for delivery until released from pledge. The beneficial owner however continues to get the corporate benefits (dividends, etc.) on flagged securities.
The term 'Free Delivery' applies to all book- entry delivery of securities, which takes place without any corresponding movement of cash in the system. Once the securities are Deposited in CDS, they become available for delivery from one account to another. If transfer of securities is within the account family of a Participant, it is called an Intra-Participant Free Delivery. Similarly, if securities are transferred from one Participant to another, the transaction is called an inter-Participant Free Delivery.
• Share certificate with verified transfer deed along with copy of CNIC are required to be submitted with respective Share Registrar. • Purchaser / buyer / transferee will fill his / her particulars in relevant columns of transfer deed and sign. • Transferee signature must be witnessed • Transfer duty is to be affixed on the reverse of transfer deed in form of share transfer stamps. Transfer duty is to be affixed @ 1.5 % of the face value of shares. • Share certificates lodged for transfer are ready for delivery / dispatch within 45 days.
• Shareholder is requested to get the transfer deed verified by respective Share Registrar to make his/her physical shares saleable or convertible in book entry form. • Shareholder sends his / her filled, signed and witnessed transfer deed to respective Share Registrar through mail or on service counters to make his / her physical shares saleable or convertible in book entry form • Transferor’s columns of transfer deed will be filled by shareholder. • Transfer Deed will be verified within 48 hours. • At service counters transfer deed is verified on presentation.
• In case of loss / misplacement of verified transfer deed, formalities such as submission of signed request letter, indemnity bond, copies of CNIC of applicant/guarantor/witnessing persons and other requirements depending upon case to case basis are to be fulfilled by Shareholder for verification of duplicate transfer deed.
Shareholder must open an account in CDS with any CDC Participant (Stock Broker) or with CDC Investors Account Services (IAS) • CDC Participant (Stock Broker) or CDC IAS Deposit Section initiates deposit request in CDS on behalf of shareholder. • CDC Participant (Stock Broker) or CDC IAS Deposit Section sends physical share certificate, verified transfer deed, duly filled and signed security deposit form and CDS deposit request printout (obtained after initiating deposit request in CDS) to respective Share. • For deposit, transfer duty is to be affixed on the reverse of transfer deed in form of share transfer stamps. Transfer duty is to be affixed @ 0.1 % of the face value of shares. • Share Registrar after verifying the documents gives approval of deposit in CDS within 5 days.
CDC Participant (Stock Broker) or CDC IAS Deposit Section initiates withdrawal request in CDS on behalf of the shareholder. • CDC Participant (Stock Broker) or CDC IAS Deposit Section sends Security Withdrawal Form (SWF) and CDS Withdrawal Request printout (obtained after initiating withdrawal request in CDS) to Share Registrar. SWF is also filled and signed by withdrawing shareholder. • Transfer duty is to be affixed on the reverse of SWF in form of share transfer stamps @ 1.5 % of the face value of shares. • Withdrawal request lodged for conversion of shares from book entry form to physical form is approved by Share Registrar in CDS within 5 days. • Physical share certificates are prepared and delivered / dispatched to shareholder within 45 days.
Shareholder will immediately inform Share Registrar in writing (signed letter) about lost / misplacement. • Share Registrar will let him / her know about necessary formalities (such as submission of indemnity bond, newspaper publication, copies of CNIC of applicant/guarantor/witnessing persons and other requirements depending upon case to case basis which are to be fulfilled by the Shareholder) • Duplicate share certificates will be prepared and issued within 45 days after completion of above mentioned formalities by the shareholder.
In case of change in personal registration details (such as address, name, bank mandate, etc.) shareholder will send letter to Share Registrar duly signed mentioning new address to note in records and to update his /her particulars in Members’ Register. In the event where shares are in electronic form, CDS account holders would write to his/her CDC participant (Stock Broker) or CDC Investor Account Services as the case maybe.