::::::::: Introduction:::::::::

Investor Account Services (IAS) offered by Central Depository Company of Pakistan allows investors to directly open and maintain accounts in Central Depository System (CDS) for electronic settlement of securities. Earlier, to settle the securities through Central Depository System, investors had to open client accounts (sub accounts) with the Participants (brokers & financial institutions). Now with IAS, investors can also have direct access to CDC.

Keeping Investor-Convenience at the foremost of our priorities, CDC has launched CDC Access- Web, IVR & SMS services. Now your investor account will be even more easily accessible and your account information will be at your finger tips round the clock, 365 days a year.

In addition to above value added services, Investor Account Holders are also entitled to receive the Account Balance Statements at their registered addresses for the quarters ended on March, June, September and December in the beginning of the following months.

Full fledged Investor Account Services are available at all of our branches in Karachi, Lahore, Islamabad and Hyderabad.

::::::::: Benefits of Investor Account Services (IAS):::::::::

Security

Secured custody of securities has always been a prime concern of investors in Pakistani capital market. This factor has been a major hindrance in establishing confidence of investors in the securities market. The need for direct access was greatly felt among investors after the introduction of CDS. By opening Investor Accounts with CDC, investors no longer have to worry about the custody of their securities because:
Investors now have full control over their securities which are maintained by CDC and account is operated only on the instructions of investors.

CDC is regulated by the Securities & Exchange Commission of Pakistan. The relevant legislations are Companies Ordinance 1984, Central Depositories Act 1997 and Central Depository Company of Pakistan Limited Regulations.

Control

By opening Investor Accounts with CDC, investors are able to fully control their electronic securities. Although trading is still done through brokers, settlement is done through CDS on written instructions from investors.

::::::::: Eligibility Criteria:::::::::

The following are eligible to open Investor Account with CDC:

1. Individuals who are Pakistani nationals (Residents/ Non Residents), Foreigners and;

• Are not minor (Minors can open IAS accounts through their legally acceptable guardians).
• Are not of unsound mind.
• Have not applied to be adjudicated as an insolvent, have not suspended payments and have not compounded with their creditors
• Are not undischarged insolvent.

2. Other than Individuals such as corporate entities, trusts, societies, etc.

::::::::: Account Opening Process:::::::::

To open an IAS account, investors need to fill out the IAS Account Opening Form (AOF) which can be obtained from the Customer Support Counters in all branches. Investors can also get the AOF by mail through a written request or download it from CDC website www.cdcpakistan.com.

For opening of IAS directly with CDC, self presence of the applicant and all the joint account holders is mandatory to meet the requirements of “Know Your Customer (KYC)”

Investors are required to submit the following with the Account Opening Form :

In case of an Individual Investor:

Physical presence of the main title holder and all the joint account holders along with original CNIC and Copy is mandatory to meet the requirements of “Know Your Customer (KYC)”

• Notarized copy of Zakat Declaration (CZ-50) for principal & all joint holders (if applicable). In case of non-muslims, application on plain paper for exemption from the compulsory levy of zakat will be required.
• Verification of the main title holder by the bank manager where the main title holder is maintaining a bank account will be required. The verification by bank manager is not applicable where the applicant(s) is a non-resident Pakistani or a foreigner.
• Notarized original Power of attorney as per prescribed format (if applicable).
• National Tax Number (NTN) certificate (optional).
• Signature card will be signed by the main title holder and all joint account holders in front of the designated staff of IAS at the time of submission of duly filled AOF.
• Notarized original affidavit for nomination as per prescribed format on Rs. 20/= non-judicial stamp paper (if applicable).

Non-residents:

• Copy of National Identity Card for Overseas Pakistani (NICOP)/CNIC/Passport (at least six months stay in abroad), duly attested by the nearest Pakistani Consulate Office.
• Bank verification on AOF is not required but signature should be same as per the attested copy of NICOP / CNIC / Passport.
• Notarized original Power of attorney as per prescribed format (if applicable).
• National Tax Number (NTN) certificate (optional).
• Duly signed signature card by the main title holder and all joint account holders.
• Notarized original affidavit for nomination as per prescribed format on Rs. 20/= non-judicial stamp paper (if applicable).

Foreigners:

• Copy of Passport duly attested by the nearest Pakistani Consulate Office.
• Bank verification on AOF is not required but signature should be same as per the attested copy of Passport.
• Notarized original Power of attorney as per prescribed format (if applicable).
• National Tax Number (NTN) certificate (optional).
• Duly signed signature card by the main title holder and all joint account holders.
• Notarized original affidavit for nomination as per prescribed format on Rs. 20/= non-judicial stamp paper (if applicable).

In case of a corporate entity:

• Signature card duly signed by all the authorized signatories with clear account operating instructions.
• Certified true copy of Memorandum and Articles of Association/Bye laws/Global business license/Trust deed/Charter (relevant documents where applicable).
• Prospectus (in case of Modaraba).
• Certified true copy of the Board Resolution.
• Certified true copy of Certificate of Commencement of Business (relevant documents where applicable).
• Certified true copy of the Certificate of Incorporation.
• Notarized original Power of attorney (if applicable).
• NTN certificate (optional).
• Certified true copy of list of directors.
• Copies of CNICs / NICOPs / Passports.
• All such documents that CDC may require.

Note:

1. Nominee will be accepted only in sole account and not in joint account.
2. As many as four persons / Investors can jointly open an Investor Account.
3. Operating Instructions of the Investor Account i.e. singly, jointly, or in any other combination should be mentioned in Account Opening Form.
4. In case of corporate entities, account operating instructions must be according to the board resolution. Further, Account Opening Form must be signed by the authorized signatory(ies) as authorized by the board of directors / trustees.
5. In case of foreign entity all documents must be attested by notary public of respective country & also by nearest Consulate office of Pakistan.

::::::::: Services offered by CDC to Investor Account Holders :::::::::

Investor Account Services offered at various CDC Branches in Karachi – Effective from December 10, 2007.

::::::::: Transactions in IAS:::::::::

Deposit
Investors can deposit their securities directly into their Investor Accounts through IAS. Initially, deposit of physical certificates was done only through Participants and thereafter securities were transferred subsequently to IAS accounts, on their instructions to Participants..

IAS Account Holders can deposit only those physical securities in their IAS Account which are duly transferred in their own names.

In order to deposit securities in Central Depository System, an investor needs to fill out the Securities Deposit Form (SDF) and submit the same at IAS counter along with certificates, transfer deeds and share transfer stamps as per the prevailing rate. Deposit request along with relevant documents is sent to respective issuer / registrar after processing at the end of CDC preferably on the same day. Securities are credited into the respective accounts by the respective Issuer / Registrar.

Delivery Out
At the time of opening of Investor Account, an investor is given a transaction order book (similar to a bank cheque book) for delivery out transactions. The investor fills out details in the transaction order leaf and submits the same at the front desk of IAS department after ensuring that sufficient cash and securities balance is available in the respective Investor Account to process the required transaction(s).

Investors having accounts with IAS can give instructions of a maximum of three securities per transaction order. While transacting in more than one security, the investor makes sure that sufficient available balance of each security is present in his/her account. If there is not sufficient available balance of any security in his/her account the transaction order cannot be executed, as partial transaction cannot be carried out. A new transaction order is required in such cases. The transaction order is executed on the day of submission as per the timings detailed under Schedule of Counter / Processing Timings.

Delivery In:
An investor needs to provide his/her Investor Account number to the Participant in order to transfer securities in his/her Investor Account with CDC.

Pledge
In order to pledge his/her securities, after acquiring pledgee & group IDs from pledgee, an investor needs to fill out the securities pledge form and submit it at the front desk of IAS department. The investor can only pledge securities in favor of Pledgees having accounts in CDS as Eligible Pledgees. The pledge instructions are executed on the day of submission as per the timings detailed under Schedule of Counter / Processing Timings.

Withdrawal
In order to withdraw securities from Central Depository System, an investor needs to fill out the Securities Withdrawal Form (SWF) along with share transfer stamps as per the prevailing rate and submit it at the front desk of IAS department. Withdrawal request along with relevant documents is sent to respective issuer/registrar after processing at the end of CDC preferably on the same day. An investor receives physical certificates from the issuer/registrar directly on the basis of client copy of Securities Withdrawal Form.

::::::::: Closing of Investor Account:::::::::

To close an Investor Account, an investor has to intimate CDC through Account Closing Request Form (ACRF) duly signed by all authorized signatories. The account will not be closed in the following circumstances:

1. If the cash or security balance of Investor Account is not zero.
2. If there is any pending corporate action awaiting credit in Investor Account.
3. If there is a pending withdrawal request.

Therefore, if the security balance is not zero, investors can either move the securities out of the account through delivery out transaction or withdraw the balance. In case of cash balance, investors can deposit/claim the balance, as the case may be

Closing of Dormant Accounts:

Account having nil security & negative cash balance will be closed after serving the annual fee reminder and 20 business days account closing notice. Further the accounts in which notice is returned / undelivered due to any reason will also be closed on the completion of notice period.

::::::::: Available Cash Balance:::::::::

It is mandatory for all Investor Account Holders to maintain sufficient cash balance for transaction fee/custody fee/annual fee etc. to avoid any inconvenience for the execution of transactions and closure of account.

To maintain sufficient cash balance in Investor Accounts, IAS account holders have many options to deposit the amount as per their convenience. The options are as follows:

• Deposits at any CDC branch counter through cash/cheques/pay orders/demand drafts.

• By sending cheques/pay orders & demand drafts through courier.

• Direct deposits into CDC bank accounts through cash/cheques/pay orders/demand drafts & telegraphic transfers.

Note:

a) All cheques/Demand drafts/Pay orders must be in the name of “Central Depository Co. of Pakistan Ltd.” & should also encashable in the cities where CDC branches / counter exist i.e. “Karachi, Lahore, Islamabad, Hyderabad & Faisalabad”.

b) Don’t forget to write your Investor Account Number & Title at the back of your Cheque/DD/PO for convenient credit into respective IAS accounts.

c) For direct deposits/telegraphic transfers client can obtain CDC bank account number and its swift code through e-mail request at “info@cdcpak.com”
  

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