A central depository company (CDC) is an organization that provides secure and efficient systems for the settlement of securities transactions. It acts as a central point where all securities, such as stocks and bonds, are held in electronic form, making it easier for investors to buy, sell, and transfer these securities.
CDC plays a crucial role in the functioning of the capital market, as it reduces the risk of fraud and error in securities transactions. It also helps to increase the efficiency and transparency of the market by providing real-time information on the availability and status of securities.
CDC is typically owned by a group of financial institutions, such as banks, brokerage firms, and asset management companies. It operates under the supervision of regulatory authorities, such as the Securities and Exchange Commission (SEC) in the United States.
There are several key functions that CDC performs:
Securities depository: CDC acts as a central repository for securities, holding them in electronic form on behalf of the owners. It also maintains records of the ownership of securities, as well as any changes in ownership that occur through buy and sell transactions.
Securities clearing: CDC clears and settles securities transactions, ensuring that the appropriate securities are transferred between buyers and sellers. It also manages the settlement of cash payments between the parties involved in a transaction.
Securities lending: CDC facilitates the lending of securities to investors, allowing them to borrow securities to cover short positions or to facilitate trading strategies.
Corporate actions: CDC processes corporate actions, such as dividends, stock splits, and mergers, on behalf of the companies whose securities it holds.
CDC plays a critical role in the functioning of the capital market, and its services are essential for the smooth and efficient operation of the market. It helps to reduce the risk of fraud and error in securities transactions, and promotes transparency and efficiency in the market.
Central Depository Company Presentation
CDC has branches in Karachi, Lahore and Islamabad. This is unlike the physical market where it will take a long time. OBJECTIVES: To provide secured and dependable services to the capital and financial market. For callers in Pakistan, this facility is provided through 0800 CDCPL 23275. 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. 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.
Overview
INVESTOR ACCOUNT SERVICES This service allows investors to directly open and maintain accounts in Central Depository System CDS for electronic settlement of securities. Pledge In order to pledge securities, an investor needs to fill out the securities pledge form and submit it at IAS department. After approval, fresh security certificates are issued in the name of the transferee in the form 5. This is inline with our prime objective that is to cater to the needs of industry growth. The fees payable by a DP for the services provided by the depository in respect of transaction of securities is prescribed by regulations. In the past two decades, Central Depository Company has evolved as the infrastructure backbone and the Ultimate Custodian of the Pakistan Capital Market. Financial institutions, banks, insurance companies, limited companies, approved clearing corporation, clearing house of stock exchanges and any registered stock dealer, stock broker, merchant banker, asset management company, custodian or any capital market intermediary can become DP.
Depository Trust Company (DTC)
Giving CDC a real edge is its Business Continuity Program BCP supported by backup capabilities to ensure security of information and recovery of the service immediately in case of any disaster Highly professional, qualified and experienced Scope of ServiceqMaintenance of computerized Members Register qMaintenance of specimen signatures of share holders qDealing with share holders on SRS Service Counter, telephone and through mail. 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. Started on 01 January, 1986 By arch View Central depository services limited PowerPoint PPT presentations online in SlideServe. CDC Technology Services:It consist of two-prong balanced approach i. C The applicant submits the documents complete in all respect to CDC. Their Clients will be able to pledge their electronic book based securities in CDS.
CENTRAL DEPOSITORY AND SETTLEMENT SYSTEMS
Objective of CDC Services:To be a leading institution providing quality services to our customers and helping them capitalize on their true potential. Login to the computer system is protected through token which generates a constantly changing code complimented by a 4-digit PIN. Presented By, Rohit Mundhara P-21 Jignesh Thakkar P-36 Nahush Mhaskar P-19 Aditi Sabaria C-31 Kiran Pawar P- 26. BRANCHES Its main office is situated in Lahore and three other branches are located in Karachi, Islamabad and Hyderabad. Clients are required to bring a request letter duly signed by the authorized signatory ies of the account to avail this facility. 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 users. Some investment firms, or the issuer, may not provide the option of holding a security in the form of a certificate.
CDC
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 sites are interconnected through highly reliable WAN links. AMEDA CONFERENCE SUN CITY, SOUTH AFRICA 24 TH OCTOBER 2008. However, it does not matter really. CDC is the only depository in Pakistan, handling the electronic paperless settlement of transactions carried out at all three stock exchanges of the country. DETAILED PROCEDUREThe Free Delivery transaction does not require separate initiation and confirmation stage.
Central depository company (cdc)
This report laid the foundation for depository design. All the members of Stock Exchanges, Banks Both Commercial and Investment , and DFIs are allowed to open their account as Participants whereas, Corporate Bodies such as Leasing Companies, Modarabas and Insurance Companies can open their account as Account Holders. Partial acceptance of some of the certificates on a Securities Deposit Form will be allowed by the System. SRS is one of the most important services required by a capital market in any country or region. The issuer employs or has the capability to employ personnel familiar with the regulations andprocedures to carry out its obligations. When you buy dematerialized shares you become the owner of those shares as soon as they are credited to your account. House Account: Used for securities owned beneficially by Account Holders.
Other than Individuals such as corporate entities, trusts, societies, etc. Enhanced Services Confirmation of all transactions carried out in an Investors Account is sent to investors on request. Share Registrar Services SRS SRS Features Customer support services department including, call center with a toll free number and a dedicated and trained customer support team facilitating customers. O Book Change of contact numbers CDC Access - SMS :CDC Access SMS gives an added level of convenience to investors by providing them their account info on their mobile screens through short messaging service alerts. 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.
