Central Depository Company Presentation e4t18

Group : 1: ISMAIL FAYYAZ F08md034 2: MUHAMMAD ALI 3: ABDULLAH 4: ALLAH RAKHA 5: SALMAN AKMAL 6: FAWAD MIRZA

F08md035 F08md045 F07md014 F08md043 F07md055

ISMAIL

FAYYAZ

(f08md034 )

TOPIC : Company

Central Deposit

Introduction 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.

Provide Services 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 . Other services : Trustee and custodial

Investor Service

Aim of CDC 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 an effective capital market system which will attract institutional and retail level investors from Pakistan and abroad. CDC is regulated by the SE. CDC has branches in Karachi, Lahore and Islamabad.

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. 

History .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

Central Deposit System ( CDS )

Main function to operate CDS Guidance well defined by SE Installed by IBM No Physically movement of securities

Benefits of CDS § Reduced workload and manpower requirements due to paperless settlement.

§ No stamp duty on transfers in CDS. § No risk of damaged, lost, forged or duplicate certificates.  § Paperless environment. § Secure custody of securities. § Substantial reduction of paperwork during book closure. § Substantial reduction in time & capital investments.

MUHAMMAD AL Roll No FO8mdO35

S ervices offered by CDC

Investor Service s ( IAS ) Investor Services allow retail investors to directly open and maintain s in Central Depository System for electronic settlement of securities. With Investor Services, investors can now have direct access to their and securities.

Enhanced Services

Confirmation of all transactions carried out in an Investors is sent to investors on request. In case, where 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 .

Pledge

In order to pledge securities, an investor needs to fill out the securities pledge form and submit it at IAS department. The investor pledge securities in favour of Pledgees having s in CDS.

W ith d ra w a l In o rd e r to w ith d ra w se cu ritie s fro m C e n tra l D e p o sito ry S yste m , a n in ve sto r n e e d s to fill o u t th e S e cu ritie s W ith d ra w a l Fo rm ; a ffix tra n sfe r sta m p s a s p e r th e p re va ilin g ra te o n th e se co n d o r th ird co p y o f th e fo rm a n d su b m it it a t IA S d e p a rtm e n t. W ith d ra w a l re q u e st a lo n g w ith re le va n t d o cu m e n ts is se n t to re sp e ctive re g istra r a n y tim e th e sa m e d a y. A n in ve sto r re ce ive s p h ysica l ce rtifica te s fro m th e re g istra r d ire ctly o n th e b a sis o f first co p y o f S e cu ritie s W ith d ra w a lFo rm .

Trustee & Custodial (T & C): Central Depository Company started Trustee & Custodial Services in 2002.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 with an aggregate fund size of approximately Rs. 1 1 7 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 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.

Tra n sa ctio n S e ttle m e n t R e ce ip t a n d d e live ry o f se cu ritie s a g a in st p a ym e n t b o th in scrip t- le ss a n d p h ysica lfo rm .

Corporate Actions: Sending intimation to the clients regarding any notices that have been received in respect of bonus issues, rights issues held on behalf of the beneficial owners. Receiving and holding, for the of the beneficial owners, all securities received as a result of a stock dividend, share sub-division or reorganization, capitalization of reserves.

Merger Scenario I Merger of Company ‘A’ (Transferor) with Company ‘B’ (Transferee) Both companies (company ‘A’ and company ‘B’) are live on CDS.

Scenario II • Merger of Company ‘A’ and Company ‘B’ forming new company ‘C’ • Both companies (company ‘A’ and company ‘B’) are live on CDS while company ‘C’ is declared as an eligible security.

De-Merger • Separation of one of the division / department from Company ‘A’

• Establishment of separated division / department

as a new Company ‘B’. • Company ‘A’ is already live security on CDS whereas company ‘B’ will be declared as an eligible security prior to de-merger process.

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 : 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.

Security Measures: Various firewalls and protection systems employed at CDC effectively restrict unauthorized use of the system and virus infections with utmost efficiency. to the computer system is protected through token which generates a constantly changing code complimented by a 4-digit PIN.

Share Registrar Services ( SRS )

SRS is one of the most important services required by a capital market in any country or region. Central Depository Company, Share Registrar Services 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 countrywide branch network and IT infrastructure. Also, independent Legal and Internal Audit departments ensure statutory and regulatory compliances.

SRS Features Ø Customer services department including, call center with a toll free number and a dedicated and trained customer team facilitating customers. Ø Giving CDC a real edge is its Business Continuity Program (B) ed by backup capabilities to ensure security of information and recovery of the service immediately in case of any disaster Ø Highly professional, qualified and experienced

Scope of Service qMaintenance of computerized ’ qMaintenance of specimen signatures of share holders qDealing with share holders on SRS Service Counter, telephone and through mail. qVerification of share holders’ signatures on Transfer Deeds and Proxy Forms etc. qDividend Entitlements and Payments to share holders qTaking attendance of share holders in Annual

Technology Service Group ( TSG ) 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 Medium and Large Enterprises Focusing predominantly towards Microsoft based competencies with the right team equipped to deliver quality services to their customers.

CDC Technology Services: It consist of 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’.

Objective of CDC Services: “To be a leading institution providing quality services to our customers and helping them capitalize on their true potential.”

CDC Commitment: CDC committed to provide quality services to their customers comparable to best in class practices. The company’s aim is to providing its employees an environment of professional & personal growth.

ABDULLAH F08MD045

Elements of Central Depository System

There are three elements of CDS § Holders § Issuers / Registrars § Eligible Pledges

Holders Holders are divided into two categories: 1. Holder 2.Participant Both have direct access to CDS.

All the of Stock Exchanges, Banks ( Both Commercial and Investment ), and DFIs are allowed to open their as Participants whereas, Corporate Bodies such as Leasing Companies, Modarabas and Insurance Companies can open their as Holders.

Structure Main : Each Holder in the system will be allocated a main by virtue of being an Holder in the CDS. This will mainly be used as a transit for movement of securities. Any security coming in or moving out of an holder's family of s will through this . House : Used for securities owned beneficially by Holders.

Structure Sub- (Client ): used for keeping securities belonging individually to each of those clients of a Participant who require their securities to be kept in a Sub . Investor s: Investor s are s which can be opened and maintained by CDC Investor Services.

Issuers / Registrars The issuers of capital whose securities are converted from physical to electronic book entry system play a significant role in Central Depository System. They will also have direct access to the CDS. After a security is declared eligible for the purpose of Central Depository System, necessary software and CDS connection is provided to that particular issuer upon g the Issuers Agreement with CDC. The shares are entered into CDS only after proper verification by these issuers or their registrar. This process eliminates the problem of fake/duplicate/lost/stolen share certificates as issuers thoroughly check them before approving for CDS.

Eligible Pledges Financial institutions that lend against securities will have their with CDS in the capacity of Eligible Pledges. These institutions will also have direct access to CDS and will be provided with necessary connection in this regard upon g the Pledge Agreement with CDC. Their Clients will be able to pledge their electronic book based securities in CDS. Once the securities are pledged in the CDS, the control over those securities is transferred to the eligible pledgee in the form of pledge release / call. Nevertheless, the beneficial owner will continue to get the benefits of corporate action on pledged securities.

Holder

holders are allowed to keep their beneficially owned securities into CDS . ELIGIBILITY CRITERIA According to CDLR, any person, company, corporation or institution may apply to the CDC for ission to the CDS as an Holder.

Participant

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

Eligibility Criteria As per Central Depository Company of Pakistan Limited Regulations it can be, 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 decide.

Eligible Pledgee

Financial institutions that lend against securities can CDC in the capacity of Eligible Pledgees . 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 ission to the CDS as Eligible Pledgee. 

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

C) The applicant submits the 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 s of the CDS to their satisfaction. F) As soon as the is activated, Ids and s are sent to the Applicants

Documents Ø ission Form(individual, corporate) Ø Agreement Ø Specimen Signature Card Ø Specimen Board Resolution(in case of corporate )

Other Required Documents Ø Certified true copy of Stock Exchange Registration Certificate (If applicable)(both) Ø Certified true copy of Memorandum & Articles of Association(corporate) Ø Certified true copy of Certificate of Incorporation(corporate) Ø Certified true copy of Certificate of Commencement of Business (if applicable) (corporate) Ø

Other Required Documents ( cont ’ d ) Ø Security Deposit & Documentation Fee(both) Ø Certified true copy of Banking License(if applicable) (corporate) Ø Certified true copy of NBFC License(if applicable) (corporate) Ø Certified true copy of SE Brokerage Certificate (if applicable)(both) Ø Certified true copy of Minimum Subscription Certificate and Prospectus (if applicable) (corporate)

Issuer ( Security ) To induct a security into CDS a security must first be declared as an eligible security (by fulfilling the ission criteria set out in CDL Regulations) for the purposes of CDS. Once a security is declared eligible for the purposes of CDS, the issuer is provided with the necessary software to connect to the CDS for verification and dematerialization of the said security and then only it can be inducted into CDS (made live in CDS). The securities’ induction in CDS is done in two phases: • Declaring Security Eligible • Induction of an Eligible security

Eligibility Criteria As per CDLR, the Central Depository CDC can declare any security (listed or unlisted) as an eligible security if it is satisfied that: The issuer has the data processing capacity and operational capability. The securities are valid, legal and transferable by book entry or otherwise. The issuer has acquired or has the capability to acquire the capacity to communicate reliably with CDC in accordance with the procedures. The issuer employs or has the capability to employ personnel familiar with the regulations and procedures to carry out its obligations.

Induction Process : A)Notice of Eligibility A notice of declaration of Eligible Securities is given to the following: Issuer of the Security Relevant Stock Exchange(s) - In case of a listed security Securities & Exchange Commission of Pakistan B) After the notice, a security induction package containing Issuer Agreement, Issuer ission form, Specimen signature card, Board resolution and Payment advice is sent to the Issuer.

C)  In case of New RTA: On confirmation from the Issuer regarding availability of hardware & CDS software is installed at Issuer's / Registrar's premises. D)  A comprehensive training session is conducted to train the s of the CDS to their satisfaction. The session explains in detail the concept & workings of the CDS. E)  Once the setup of the security is done in CDS; Ids and s are sent to the issuers: F)  CDC notifies all its Participants/ Holders either directly or through Stock Exchanges that the security has become live in the CDS.

ALLAH RAKHA ( F08MD014 ) qTransaction qHow CDC Exchange?

AT CDC works

with

Stock

TRANSACTIONS AT CDC Ø DEPOSIT OF ELIGIBLE SECURITIES INTO THE CDS Ø WITHDRAWAL OF ELIGIBLE SECURITIES FROM THE CDS Ø FREE DELIVERIES Ø PLACING SECURITIES UNDER PLEDGE Ø

DEPOSIT OF ELIGIBLE SECURITIES The deposit request transaction can be initiated by an 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 ’/Security Holders’ of the Issuer. To give the an overview, an outline flow-chart of the procedures relating to Deposits of ed Form Securities into the CDS is given below:

DETAILED PROCEDURE 1. holder/Participant will fill out a four copies of Securities Deposit Form 2. Relevant security certificates and the signed transfer deeds accompanying them will be attached to the Securities Deposit Form. The Holder/Participant will enter the name of the CDC as the transferee. 3. Holder/Participant will then key in the data to the system using the form as the data entry document.

DETAILED PROCEDURE 4. 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. 5. 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).

WITHDRAWAL OF SECURITIES The withdrawal functionality enables Holders/Participants to withdraw securities from the CDS in the form of physical certificates. Securities Withdrawal Form will be completed by an 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 ’/Security Holders’ of the Issuer.

DETAILED PROCEDURE 1. Holder/Participant will prepare/receive

four copies of Securities Withdrawal Form

2. The relevant data in the form will be input to the system by the Holder/Participant initiating the Withdrawal Request Transaction.

DETAILED PROCEDURE 3. The Issuer/Transfer agent (R/TA) will that the Securities Withdrawal Form is properly completed and will then execute the Withdrawal Approval transaction. 4. After approval, fresh security certificates are issued in the name of the transferee in the form 5. This transaction decrease the CDC’s nominee holding in the ’/Security Holders’ of the Issuer.

FREE DELIVERIES An Holder/Participant is only allowed to deliver securities out of his Family. Participants are required to deliver securities out of sub-s only after obtaining written instructions from their respective clients. This category of transaction also covers book-entry deliveries between an Holder/Participant’s main , house and the sub-s maintained on the system.

DETAILED PROCEDURE The Free Delivery transaction does not require separate initiation and confirmation stage. The transaction is completed when an Holder/Participant enters data into the system asking for securities to be delivered from his to another . The Activity Report produced by the system on request provides the necessary documentation. For the sake of their own documentation, Holder/Participants can get their clients to fill out standard forms when giving instructions to the Holder/Participant. If the Transaction is reject, participant can execute another free delivery to reverse the impact of the original transaction.

PLACING SECURITIES UNDER PLEDGE An 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- Holders/clients is required in case of pledge through sub-. 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.

DETAILED PROCEDURE 1. An Holder or a Participant, either on behalf of a client or on his own behalf, fills out three copies of Pledge Form 2. The Holder/Participant enters the pledge transaction into the system by using the Pledge form as the basis for data entry. 3. The Holder/Participant sends one copy of the Pledge form, duly signed by the 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.

DETAILED PROCEDURE 4. The Eligible Pledgee retains the signed form mentioned above for its own record. 5. One copy of the Pledge Form is retained by the Holder/Participant and the third copy is given to the client (in case securities are being pledged on behalf of a client). 6. The Eligible Pledgee is to obtain printed reports from the CDS showing the position of securities pledged to him by various Holder/Participants of the Depository and/or their clients.

HOW CDC WORKS WITH STOCK EXCHANGE? CDC provides a window for stock exchange. CDC does not involve in stock exchange Transactions. It only keeps the track of transactions and keeps the all the securities in it along with its owner name. take place between two investors in stock exchange. CDC just transfer the securities from One Investor to other Investor on behalf of those investors.

HOW CDC WORKS WITH STOCK EXCHANGE? STOCK EXCHANGE

A

B

Transaction of Securities Tra nsf er req ues t

ta Da o nt ti pu in

PARTICIPANT

sy e st m

Secu riti es T

CDC

A’s

rans fer inti mati on

CDS

Securities transfer from A ’ s a / c to B ’ s a / c

B ’s

DETAILED PROCEDURE There are two parties: party A and party B, Both have their s in CDC, ü A transaction take place between A and B at stock Exchange. ü A sells his securities to B. ü A sent request to his participant to transfer his shares to B. ü Participant enter transfer request and data of into system. ü In CDS, Shares are transferred from A’s to B’s ü Intimation about transfer of securities are sent to both parties

SALMAN AKMAL F08MD043

Central depository company ( CDC ) qLegal Framework

qTechnical Info qPerformance of CDC

qFee Schedule qGlobal Terminal qInternational Linkages

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

Legal Framework

Ø The establishment of a Central Depository System required changes in the legal framework. Before Central Depositories Act 1997 Ø ed 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 ed owner which was not suitable to the depository structure.

Legal Framework After Central Depositories Act 1997 Ø The Central Depositories Act 1997 made it possible to recognize the beneficial owner of securities on the basis of holdings in depository s. Ø In the current depository structure, all securities are ed in the name of Central Depository Company of Pakistan Limited in the capacity of a nominee, the holders are considered to be the beneficial owners of securities on the basis of their holdings in CDS s.

Legal Framework Relevant Legislation: Centr al Depositories Act, 1997

Central Depository Company of Pakistan Limited Regulat as of November 6, 2009 Companies Ordinance, 1984, and  Zakat & Ushr Ordinance, 1980

Technical Info CDS Network Ø CDC's network is spread across the main trade hub cities of Pakistan. The sites are interconnected through highly reliable WAN links. Ø 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. Ø 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.

Technical Info CDS Network Ø Stock s are connected through resilient and dedicated links while clients other than stock s (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).

Technical Info CDS Software: Ø CDS is a menu-driven client/server application system. The Graphic Interface based proprietary client runs on a Microsoft Windows based PC. Ø The Client neither stores s’ 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 ed by the Customer Network Services.

Technical Info

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

Technical Info

Security Measures: To ensure utmost security of information, multiple levels of protection have been deployed to create an impregnable system for hackers and unauthorized s. Some of the major security measures include: Ø Terminal Authentication  

Technical Info

Security Measures:

  Ø Virtual Private Network (VPN) Ø Various Firewalls Ø Segregated Level Authorities Ø 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 Performance at a glance

On June 30, 2008

On June 30, 2009

On October 31, 2009

Number of shares in CDS (in Bn)

55.69

65.08

70.10

Market Capitalization of 2.097 shares in CDS (in Trillion)

1.148

1.452

% of shares in CDS w.r.t. total share capital

80.10%

83.33%

84.97%

Total number of Investor s

43,985

51,984

52,865

Number of Securities in Investor s (in Bn)

15.412

20.199

20.151

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.

Fee Schedule The fee structure for trustee services is as follows: Net Assets (Rupees)

Tariff

from 1

to 1 billion

Above 1 billion

3 billion

Rs. 1.5 million plus 0.10% p.a. of Net Assets, on amount exceeding Rs. 1 billion

Above 3 billion

6 billion

Rs. 3.5 million plus 0.08% p.a. of Net Assets, on amount exceeding Rs. 3 billion

Above 6 billion

-

Rs. 5.9 million plus 0.06% p.a. of Net Assets, on amount exceeding Rs. 6 billion

Rs. 0.3 million or 0.15% p.a. of Net Assets, which ever is higher

Global Terminal Facility

Ø 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 s from CDC premises and complete their transactions. Ø Clients are required to bring a request letter duly signed by the authorized signatory (ies) of the to avail this facility.

International Linkages CDL(Central Depository Company of Pakistan Limited) is an active member of the following regional and international bodies / entities: Ø 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.

International Linkages Ø 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. Similarly Ø ISSA – International Securities Services Association Ø FEAS – Federation of Euro-Asian Stock Exchanges Ø SAFE – South Asian Federation of Exchanges

International Linkages Affiliations Memorandums of Understanding (MoUs): To avail benefits of cross-border cooperation, explore avenues of mutual assistance and enhance coordination with international depositories, CDC has signed a number of Memorandums of Understanding (MoUs) with regional and international depositories.

International Linkages These include: Ø  Japan Security Depository Centre, JASDEC Ø Depository Trust & Clearing Corporation (DTCC), U.S.A. Ø Thailand Securities Depository (TSD), Thailand Ø Abu Dhabi Securities Market (ADSM), U.A.E. Ø Dubai Financial Market (DFM), U.A.E. These MoUs entail cooperation in the areas of technology exchange, operational procedures, mechanism for cross-border listing of securities and exchange of information.

FAWAD AHMED MIRZA F07MD055

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(SE), State Bank of Pakistan, country’s three stock exchanges – Karachi Stock Exchange(KSE) in particular, National Clearing Company(NCL), Central Depository Company(CDC) itself and most importantly, the market, which comprises of brokers, AMCs, mutual funds and investors.

Capital Market Development 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 Settelement 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.

National Clearing and Settelement System ( NCSS ): Formerly managed by the CDC management, NCL is ed 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.

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 Peshawer Hyderabad

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 s 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 servicerange CDC customers can access their information through services, which include IVR (Interactive Voice Response), Web and SMS facilities.

CDC Access IVRis a round-the-clock Interactive Voice Response system ed by a state-of-the-art call centre, toll free number 0800-CDL (23275) and dedicated customer staff. CDC Access – Web enables Investor holders to access their information through https://www.cdcaccess.com.pk CDC Access– SMS gives an added level of convenience to investors by providing them their info on their mobile screens.

CDC Access 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 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 Services(IAS) ID and your number.  

Your CDC Relationship Number :

Generation of T Pin : Call at 0800-CDL (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 Number) Generate your 4 digit T-Pin.

Generation of T Pin : CDC Access - Registration Form: Please click on the link to the Registration Form The form can also be obtained from the Customer 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 Front Desk or send it to the CDC Office where you are maintaining your Investor . 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 ed by a state-of-theart call center, toll free number and dedicated customer staff. For callers in Pakistan, this facility is provided through 0800 – CDL (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:

CDC Access Interactive Voice Response ( IVR ): Balance of a specific security Balance of last three active securities Balance of all securities Activity Report Cash Balance Cash Activity Report Requisition of Transaction Order (T.O) Book Change of numbers

CDC Access - SMS : CDC Access – SMS gives an added level of convenience to investors by providing them their info on their mobile screens through short messaging service alerts. CDC Access – SMS service is a one-way information facility provided on national cellular networks only. Information about the following activities is provided through this service:

CDC Access - SMS : Approval and rejection of deposit transactions Transfer of book-entry securities (delivery out) from your IAS Credit of corporate action entitlements such as, bonus/right shares and new issues Pledge transactions pertaining to your Dispatch of Transaction Order Book (T.O. Book) Change in your ’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   Balance(For any given date):   Securities Balance – Balance of securities held in your Cash Balance – Cash available in your for transactions

CDC Access – WEB Activities(For any given period):   Securities Activity – Detail of securities’ movement pertaining to your Cash Activity - Detail of cash deposited and cash consumption for transactions pertaining to your Pledgor Balance / Activity Report - Detail of securities pledged in your and their subsequent ‘Call’ or ‘Release’ by the respective Pledgee

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

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

CDC Access – WEB 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 , like changes in Registration Details or request for a new Transaction Order (T.O) Book, etc.