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.
Benefits of Electronic Settlement through CDS:
1. Reduced workload and manpower requirements due to paperless settlement.
2. Instantaneous transfer of ownership.
3. No stamp duty on transfers in CDS.
4. No risk of damaged, lost, forged or duplicate certificates.
5. No impact in case of sudden increase of settlement volumes.
6. Instant credit of corporate entitlements (bonus, rights and new issues).
7. Paperless environment (no traditional vaults).
8. Secure custody of securities.
9. Substantial reduction of paperwork during book closure.
10.Convenient pledging of securities.
11.Substantial reduction in time & capital investments.
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.
Benefits of Electronic Settlement through CDS:
1. Reduced workload and manpower requirements due to paperless settlement.
2. Instantaneous transfer of ownership.
3. No stamp duty on transfers in CDS.
4. No risk of damaged, lost, forged or duplicate certificates.
5. No impact in case of sudden increase of settlement volumes.
6. Instant credit of corporate entitlements (bonus, rights and new issues).
7. Paperless environment (no traditional vaults).
8. Secure custody of securities.
9. Substantial reduction of paperwork during book closure.
10.Convenient pledging of securities.
11.Substantial reduction in time & capital investments.
CDS Elements
a. Participants / Account Holders
b. Issuers
c. Eligible Pledgee
a. Participants / Account Holders
b. Issuers
c. Eligible Pledgee
Transactions handled by CDS
a. Deposit of Securities
b. Transfer of Securities
c. Pledging of Securities
d. Pledge Release
e. Pledge Call
f. Withdrawal of Securities
g. Corporate Action
a. Deposit of Securities
b. Transfer of Securities
c. Pledging of Securities
d. Pledge Release
e. Pledge Call
f. Withdrawal of Securities
g. Corporate Action
