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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
CDC CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED
AFFILIATE MEMBER
The year 2005-06 proved to be the best
in CDC’s history where record revenue
of US$ 14.3 million has been earned.
M. Hanif Jakhura
CEO
Economic Review
The year 2005-06 was another year of robust
economic growth for Pakistan where GDP
grew by 6.6%. While service and industrial
sectors growth continued to be the bright
spot, the overall growth in the agriculture
sector which accounts for approximately
25% of GDP remained below the target. With
average economic growth of 7.5% in the last
three years, Pakistan positioned itself as one
of the fastest growing economies of the
Asian region. The dynamism in industry,
services and agriculture sectors, and the
emergence of a new investment cycle with
investment rate progressively reaching new
height at 20% of GDP depict all the prerequisites
for sustained economic growth.
Company Review
The year 2005-06 proved to be the best in
the Company’s history where record revenue
of US$ 14.3 million has been earned.
Various activities contributed towards this
achievement especially earnings from the
transfer of ownership to strategic buyers of
mega Government owned entities through
the Central Depository System by the
Privatization Commission and exceptional
growth in trustee business.
Consistent growth shown by the Company
over the past few years has made it
financially strong increasing its shareholders’
value. Shareholders’ equity which was
US$ 1.198 million as at 30 June 2002 which
was less than the original paid-up capital of
US$ 1.67 million, depicted unprecedented
growth in the last four years to close at
US$ 15.214 million as at 30 June 2006
resulting in cumulative annualized growth
rate of 88%.
During the year the Company lived up to its
status as a national institution when it
developed the Unique Identification Number
System (UIN) for registration of investors to
maintain a traceable link with trades
executed on behalf of investors, thereby
paving the way for a more transparent
working of the Pakistani capital markets.
Being an infrastructure project serving capital
and financial markets, the Company followed
the previous practice of sharing the benefits
of its increased revenue earned through
efficient and pioneering services with
investors and market participants and once
again slashed its tariffs. Transaction fees
were reduced by 16.67% while custody fees
were lowered by 50% for all investors with a
further reduction of 25% on blocked shares
under regulatory directive providing
substantial relief to long term investors.
The confidence of market participants and
investors in the Company has been
portrayed best by the fact that during the
year 15.59 billion shares, 40 new securities
and 78 new Participants/ Account Holders
were admitted into Central Depository
System.
Closely following the immensely successful
Road Shows held in Abu Dhabi and Dubai,
CDC added another feather in its cap by
successfully hosting the high profile 10th
General Meeting of Asia Pacific Central
Securities Depository Group, commonly
referred to as the ACG10 in Karachi and is
currently also acting as the ACG Secretariat.
The Company is well on course of achieving
new targets in its operational activities, with
planned commencement of registrar services
and growth envisaged in trusteeship
operations.
General Information
The CDC is the only depository in Pakistan
having its branches in various cities in the
country. The company was incorporated as a
public limited company (un-listed) on
23 January 1993 and started operations in
September 1997. The market allows both
physical and scripless settlement, but a very
high proportion of traded securities have been
immobilized in the Central Depository System
(CDS). Approximately 98% of the market
settlement is in book entry form. Conversion
into the CDS is stipulated to take five days.
Investors have the option to withdraw the
securities in physical form. Physical settlement
is not allowed for securities live on the CDS.
Core Services Provided
1. Deposit of securities
2. Custody of securities
3. Transfer of securities
4. Pledging of securities
5. Withdrawal of securities
6. Corporate actions
7. Initial public offerings
8. Services to open end mutual funds
* Please refer to page 84 for the Pakistan country report.
Participation Criteria
Participants/Account Holders
Members of stock exchanges, banks, DFIs,
corporate bodies and qualified private
investors are eligible to become
participant/account holder of CDC.
Eligible Pledgee
Financial institutions, stock exchanges &
brokers may join CDC as eligible pledge.
Issuers
All issuers of listed securities must join the
CDC in the capacity of an Issuer. Unlisted
Companies can also join the system.
Size of Guarantee Fund
CDC does not operate a guarantee fund.
Does the CSD act as a central
counter party?
No
Memberships in other International
Organizations
Association of National Numbering Agency
(ANNA)
International Securities Services Association
(ISSA)
Asia-Pacific Central Securities Depositories
Group (ACG)*
*Central Depository Company of Pakistan Limited is
elected as the secretariat of Asia Pacific Central
Depositories Group for the year 2007.
Legal Status
Public Limited Company (Unlisted)
Type of Commercial Entity
For-profit company
Regulated by
Securities and Exchange Commission of
Pakistan
Form of Securities
Immobilized
Form of Settlement
Book Entry
CONTACT INFORMATION
Address: CDC House, 99-B, Block “B”, SMCHS,Main Shahrah-e-Faisal, Karachi, 74400, Pakistan
Tel: (9221) 432 6032 Fax: (9221) 432 6034
Contact Name Mr. Aftab Ahmed Diwan E-mail diwan@cyber.net.pk Website www.cdcpakistan.com
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