Professional Documents
Culture Documents
The main function of CDC is to operate and maintain the Central Depository System
(CDS), drawing guidance from a well-defined legal framework laid down by Securities
& Exchange Commission of Pakistan (SECP). Installed by an IBM-led consortium,
CDS is an electronic book-entry system used to record and maintain securities and to
register the transfer of securities.
The system changes the ownership of securities without any physical movement or
endorsement of certificates and execution of transfer instruments. CDS facilitates
equity, debt and other financial instruments in the Pakistani Capital Market. It
manages Ordinary & Preference shares, TFCs, WAPDA Bonds, Sukuk, Open-End &
Closed-End funds and Modaraba Certificates.
Following are some of the benefits of electronic settlement of securities through CDS:
CDS Elements
• Deposit of Securities
• Transfer of Securities
• Pledging of Securities
• Pledge Release
• Pledge Call
• Withdrawal of Securities
• Corporate Action
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 CDS
account to another. If the transfer of securities is within the account family of a
Participant, it is called Intra-Participant Free Delivery. Similarly, if securities are
transferred from one Participant to another, the transaction is called Inter-Participant
Free Delivery.
Securities can be withdrawn in the form of physical certificates from CDS through
withdrawal transaction. This facility is provided to cater for those investors who
prefer to keep physical security certificates.
At the time of book closure for corporate action, the records of the depository are
considered as an extension of the Members’ Register maintained by the Issuer or
Registrar / Transfer Agent on behalf of issuer. 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, dividends etc. are distributed on the basis
of the list of beneficial owners provided by the CDC. CDS also facilitates the
processes of Merger, Demerger and Consolidation / Sub-Division in an efficient
manner.
Investors can have their securities, subscribed in IPOs, directly credited to their
accounts in electronic form. With this feature, they can save costs and hassles
involved in obtaining physical certificates and then getting them deposited in
electronic form.
Technical Info
CDS Network
CDC's network is spread across the main trade hub cities of Pakistan. The sites are interconnected
through highly reliable WAN links. 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. 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.
Stock users are connected through resilient and dedicated links while clients other than stock users
(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). Sufficient numbers of simultaneous dial-in lines are maintained at various sites to allow first
call connection. We also have reliable and high bandwidth metro fiber connectivity for external
clients.
CDS Software
CDS is a menu-driven client/server application system. The Graphic User Interface based proprietary
client runs on a Microsoft Windows based PC. The Client neither stores users’ 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
supported by the Customer Network Support Services.
The application is being continuously enhanced in-house to include more functions and features.
Standards based Software Engineering process is being implemented to ensure uninterrupted
availability of the system and the integrity of the data.
The software updates for CDS Client are delivered over the CDC network for efficient configuration
management.
CDS Hardware
CDS Client is an Intel based PC with a LAN card for the users at local stock exchange LAN and a
standard modem for the remote users.
Minimum Requirement
Microsoft Windows 2000 Professional/ Windows XP Professional (Licensed) with latest Service Pack & p
Internet Explorer version 6.0 or above
Acrobat Reader 7.0
Connectivity Option
Manufacturer Type
Any Brand RJ-45 Connector Type (10/100 Mbps)
Modem for Remote Users/ Dialup Users
Minimum Requirement
US Robotic / Zoltrix 56 Kbps (Internal or External)/ ISDN Modem / ISDN BRI
Security Measures
To ensure utmost security of information, multiple levels of protection have been deployed to create
an impregnable system for hackers and unauthorized users. Some of the major security measures
include:
Users can open the received e-mail by clicking 'Outlook Express' option
from the 'Programs' sub menu of the MS-Windows 'Start' menu. The
same operation can be executed by clicking MS-Outlook Express icon
in the Task Bar. Once the Outlook Express main screen appears, user
would be able to Receive, Read and Delete e-mails.
Account Holders are allowed to keep their beneficially owned securities into CDS.
Eligibility Criteria:
As per CDCPLR, 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
admission to the CDS as an Account Holder.
D) Upon receipt of the documents, CDS software is installed at the premises of the
applicant.
F) As soon as the account is activated, following Ids and passwords are sent to
the Applicants:
It is also to be noted that it takes three working days to open an account after
submission of documents (provided the documents are complete in every respect).
Tariff
SCHEDULE OF FEES
S.No NAME RATE BASIS LEVIED ON COLLECTION
WHEN MODE
(Note 1)
Initial Deposit Fee Per share P.O./Draft/
- for Shares Re. 0.01 deposited Month end Cheque
Participant/
1. - for TFCs* Nil - - -
Account Holder
- for WAPDA Bonds ** Nil - - -
- for Units *** Re. 0.01 Per Unit Month end P.O./Draft/
deposited Cheque
(Note 2)
Transaction Fee
Per share
- for Shares Re. 0.0020 Per Unit* Participant/ Month end P.O./Draft/
2. - for TFCs* Re. 0.0020 Per WAPDA Account Holder (calculated on Cheque
- for WAPDA Bonds ** Re. 0.0020 Bond** daily basis)
- for Units *** Re. 0.0020 Per Unit***