Over the years, continuous reduction in CDC’s service charges has become one of the key initiatives taken by CDC to stimulate activity in the capital market. The practice to restructure the tariff is aimed at providing customers with cost effective depository services and to share the company’s success with its clients.   

Recently, CDC announced a momentous reduction in its tariff with approval of the Securities & Exchange Commission of Pakistan. The outline of the tariff is as follows:

SCHEDULE OF FEES

 
S.No Name Previous Tariff New Tariff Remarks  
 
1.

Transaction Fee -   For Share -  For TFCs -  For WAPDA Bond -  For Units-          For Rights Entitlements (Unpaid Rights)

Re. 0.0020 Re. 0.0012 Previously, for IAS clients, Transaction Fee was charged @ Re. 0.0040 upon delivery out.  Now in the new arrangement IAS clients would be charged for both delivery in and delivery out @ Re. 0.0012.  
2. Custody Fee -  for Shares -  for TFCs - for WAPDA Bonds -  for Units      0.015% p.a.  0.0125% p.a.  0.01125% p.a.  0.009375% p.a.  

 

Year

2009-10

2010-11

2011-12

2012-13

2013 onwards

Custody Rate 0.00675% p.a. 0.006% p.a. 0.00525% p.a. 0.0045% p.a. 0.00375% p.a.

 

 

The revised charges became effective on December 22, 2010 after publication in the official Gazette of Pakistan.

This initiative has been taken by the CDC to give much needed relief and support to the market participants, especially the investing public, considering the challenging conditions currently prevailing in the capital market. The board of CDC, while approving the proposal, appreciated the initiative of the management which is in line with the Company’s policy to provide world class services at lowest possible cost.

 

Tariff Reduction Highlights since the inception of CDC

 

Since the inception of the Company, the fee charged on transactions has been reduced by 92%

 		 and that charged on custody of shares has gone down by 88%
In addition, the custody fee charged on sponsors’ blocked accounts and majority shareholders has been reduced by 88%   and is being further reduced by approximately 10% every year until July 2013
The annual fee charged to individual IAS Account Holders has been reduced by 83% and that for corporate account holders by 60%
 

 

 

 

 

Despite making these continuous reductions over the years, CDC has improved the quality of its services constantly over time. While value added services such as CDC access which includes SMS, Web and Interactive Voice Response (IVR) services have been added on regular intervals, the Company has also invested a substantial amount to upgrade its technology platform.  In addition, CDC has developed a robust security infrastructure to safeguard the information relating to clients’ assets held in the Central Depository System.  

CDC intends to continue its policy of passing on the maximum possible benefit to the investing public without making any compromises whatsoever in the services it provides and the security and integrity of the information held on its system. Through this continuing market benefiting resolve, the CDC board of directors and management has once again proved the company’s commitment to provide relief to its clients without compromising on the quality and diversity of services offered.