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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006
CDC CENTRAL DEPOSITORY COMPANY OF PAKISTAN LIMITED
AFFILIATE MEMBER
M. Hanif Jakhura
CEO
Since commencement of its operations in
1997, The Central Depository Company of
Pakistan Limited (CDC) has achieved an
indispensable position in the capital market
of Pakistan by providing concrete benefits to
its clients in terms of efficiency, security,
reliability and cost effectiveness. The
government of Pakistan’s aggressive
privatization policy deployed through
The Central Depository Company of
Pakistan Limited (CDC) has achieved an
indispensable position in the capital market
of Pakistan by providing concrete benefits
to its clients in terms of efficiency, security,
reliability and cost effectiveness.
exchanges, capital reforms undertaken by
the Securities and Exchange Commission of
Pakistan and the continued reliable services
of the CDC have resulted in the market
boom with a record increase in the Karachi
Stock Exchange (KSE) index by almost
56.50% since June 2004 and the market
capitalization has surged to US$ 38.62 billion
as of February 28, 2005.
Role of the Depository
CDC is the country’s sole depository for
equities, corporate debt and bonds. It
provides settlement and depository services
to all three stock exchanges of the country
(Karachi, Lahore and Islamabad), financial
institutions and qualified private investors. The
CDC was incorporated on January 21, 1993
as a public limited company and began live
operations on September 3, 1997. The
Company was established under the Central
Depositories Act in 1997 with the scope to
manage and operate the Central Depository
System (CDS), an electronic book-entry
system. The Company is sponsored by all the
three stock exchanges of Pakistan as well as
national and multinational institutions. The
CDC is regulated by the Securities and
Exchange Commission of Pakistan. It is
market practice to use CDS for custody and
compulsory to use it for settlement of
securities live on CDS.
The Company also manages the operations
of the National Clearing and Settlement
System (NCSS) on behalf of the National
Clearing Company Pakistan Limited (NCCPL).
The CDC started providing Investor Account
Services (IAS) to retail investors, both
individual and corporate in 1999. The CDC
has also started Trustee and Custodial
Services for closed-end and open-end mutual
funds in the year 2002.
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
Financing institutions may join CDC as eligible
pledge.
Issuers
All issuers of listed securities must join CDC in
the capacity of an Issuer.
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)
Legal Status
Public Limited Company (Unlisted)
Type of Commercial Entity
For-profit company
Regulated by
Securities and Exchange Commission of
Pakistan
CONTACT INFORMATION
Contact Name Mr. Aftab Ahmed Diwan E-mail diwan@cyber.net.pk Website www.cdcpakistan.com
* Please refer to page 86 for the Pakistan country report.
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