Author: cdc_admin

Financial Literacy Workshops in Karachi and Lahore

RIBA-Free Investment Through Modaraba

 

CDC proudly spearheads the drive to promote the financial market by enhancing the understanding and awareness of actual and potential investors with regards to available investment opportunities. Continuing with this commitment to broaden investor base in the Pakistan Capital Market, CDC introduced a new workshop about ‘RIBA-Free Investment Through Modaraba’.

This interactive workshop, held on November 26, 2016 in CDC House, was conducted by Muhammad Samiullah, Secretary General, NBFI & Modaraba Associates of Pakistan and Chairman, FPCCI Standing Committee on NBFI & Modarabas. It aimed at spreading awareness about the different ways to invest through Modaraba.

 

Money Management

 

A workshop of the ‘Money Matters’ series by Mr. Shuja Qureshi was conducted in Lahore on November 19, 2016. The workshop was held at Managers Today Management House and was attended by Investor Account holders and Sub Account holders from different parts of the city. During the workshop, Mr. Qureshi informed the attendees about the importance of financial planning, encouraging them to save and make educated investments.

Participants showed active interest in both the workshops and were responsive to the ideas shared. Attendees interacted well with the trainer and requested for more such events in future.

CDC Launches Abbottabad Sarmayakari Markaz

On November 12th 2015, Central Depository Company organized the soft launch of Abbottabad Sarmayakari Markaz (ASM) – Pakistan’s first ever Capital Market Business Hub.

 

Background:

 

It all started on January 17, 2015 when Mr. Zafar-ul-Haq Hijazi, Chairman – SECP visited the CDC House. Upon his visit, he made an important announcement to form a committee headed by Mr. Muhammad Hanif Jakhura, CEO – CDC, comprising of representatives of the stock exchanges (now Pakistan Stock Exchange) and asset management companies. The committee was assigned the task to enhance collaboration between Capital Market entities to increase outreach to smaller cities of Pakistan. These small cities have untapped savings which may result in exponential growth if synergized with right investment options. With this mandate, the committee took its first initiative of preparing an implementation plan to develop and fully operate a pilot project of Capital Market Business Hubs in such cities of Pakistan.

 

We envisioned these Hubs to play a pivotal role in enhancing the outreach and accessibility of the Capital Market across Pakistan by serving as a central location where people can have access to all major capital market entities under one roof.

 

CDC was assigned the task to launch Pakistan’s first ever Capital Market Business Hub. After extensive research and analysis, CDC decided to establish the first Hub in Abbottabad. As far as economic potential is concerned, Abbottabad is at the heart of the famous Hazara Belt which covers many cities including Haripur, Mansehra and Balakot etc. The Abbottabad Sarmayakari Markaz (ASM) is located in the heart of Mansehra Road which is the most happening and central location in the city of Abbottabad. CDC undertook the establishment of ASM’s office and supervised each and every step from designing till finalization of the construction.

The office interior and facilities are of international standards. Many Capital Market entities agreed to partner with CDC in its endeavor to increase the outreach of Pakistan Capital Market. These partners include 2 reputable brokerage houses, 6 leading AMCs, a bank, Karachi Stock Exchange (Now Pakistan Stock Exchange) and the apex regulator: Securities and Exchange Commission of Pakistan (SECP). CDC also holds an office at ASM.

 

Launch:

 

The soft launch ceremony took place at a local hotel in Abbottabad. The event was attended by all the participants of the Hub and the representatives of Abbottabad Press Club, Abbottabad Small Industries Association and Abbottabad Chamber of Commerce and residents of Abbottabad. The Chief Guest on the occasion, Mr. Zafar-ul-Haq Hijazi, Chairman – SECP, commended CDC’s efforts and stated that Abbottabad Sarmayakari Markaz is a revolutionary step towards changing the landscape of Pakistan Capital Market. CEO-CDC Muhammad Hanif Jakhura spoke about the various initiatives of increasing outreach to investors undertaken by CDC since its inception. The event received overwhelming praise from the investor community of Abbottabad.

 

Post launch Investor cultivation efforts:

 

CDC and SECP initiated investor cultivation efforts in Abbottabad after the launch of Abbottabad Sarmayakari Markaz. A number of Investor Awareness Seminars were conducted by CDC’s representatives at various locations including; Abbottabad Press Club, Mishwani Law College, COMSATS Institute of Information Technology Abbottabad, Frontier Medical & Dental College and Ayub Medical College. A great number of individuals including journalists, students and faculty members attended these seminars where they were briefed about CDC’s roles, responsibilities and service offerings. Moreover, they were educated on the purpose of establishing Capital Market Hubs. Our representatives enlightened the attendees on various investments opportunities related to Abbottabad Sarmayakari Markaz (ASM).

 

Next Phase:

 

After the success of ASM, the next phase in this endeavor would be the establishment of multiple Capital Market Hubs in various small cities of Pakistan in order to direct the idle investments towards economy building causes.

CDC introduces Online Transactions Reward Program

Online Transactions is a revolutionary service provided by CDC which allows Investor Account Holders to initiate Portfolio Transfers in real time directly through the CDC Access web portal https://www.cdcaccess.com.pk without any paper work or manual effort. In order to encourage the investors on benefits and convenience of Online Transactions, CDC recently launched Online Transactions Reward Program through which Broker Participants will be rewarded for promoting Online Transactions to Sub Account Holders. Through this scheme every quarter, top 10 Broker Participants will be rewarded based on the maximum percentage of online transactions generated by their clients as compared to preceding quarter.

CDC celebrates 18th Anniversary of its operations

The Central Depository Company of Pakistan Limited celebrated the 18th anniversary of its operations on 3rd September, 2015. In honour of this momentous milestone, an event was held at a local hotel. The event was attended by prominent members of the Pakistan Capital Market as well as several other members of the corporate community. Mr. Zafar-ul-Haq Hijazi, Chairman of the Securities and Exchange Commission of Pakistan was the Chief Guest on the occasion. Mr Hijazi praised the technological innovations introduced by CDC over the course of its operations and further acknowledged the role of CDC in implementing reforms for the benefit of safeguarding the investors.

 

Mr. Hijazi commented on the need for undertaking a collective responsibility as far as investor protection and market development was concerned, stressing that each participant had to play their respective parts. He further commented on the operational initiatives such as the Assets Under Custody regime introduced by CDC for safeguarding market integrity. Mr. Muhammad Hanif Jakhura also showed appreciation for the immense stakeholder support that enabled this milestone to be achieved. Also speaking at the occasion was CDC Chairman, Mr. Hussain Lawai who highlighted the instrumental role played by CDC’s board in ensuring effective corporate governance and providing strategic guidance to the management.

Japanese Delegation Visits CDC

A delegation from The Consulate General of Japan in Karachi and Pakistan Japan Business Forum visited the premises of the Central Depository Company of Pakistan. The delegation was headed by the Honourable Akira Ouchi, Consul General. Several Members from the Pakistan Japan Business Forum, led by Chairman Mr. Sohail p. Ahmed and Vice-Chairman, Mr. Kalim Farooqui also attended the event along with a few high-ranking members of the corporate community.

 

Mr. Muhammad Hanif Jakhura, CEO – CDC, welcomed the delegation and gave a detailed presentation to the attendees on the success story of CDC and its pivotal role in the development of Pakistan’s capital market. The attendees were also briefed on the business and operations of CDC’s subsidiary, ITMinds Limted.

 

The Honourable Consul General greatly appreciated the efforts of CDC in the development of the Pakistan Capital Market. He further praised the global image of CDC and commented upon the need for more international collaborations.

CDC introduces Limit on Assets under Custody Regime

Establishment of CDC was a defining moment in the history of Pakistan Capital Market. Our inception brought operational transparency and reduced the risk of human error in capital market transactions by introducing various procedures and solutions, ultimately nurturing a protective environment for investors. Time and again we have been taking steps to widen the scope of protection provided to the investors.

 

Recently, CDC and SECP have taken a joint initiative to introduce a security protocol that poses Limit on Assets under Custody that can be held by Trading Right Entitlement Certificate (TREC holder) Participants (Brokers). The introduction of this protocol is a revolutionary step in Investor protection which will reduce the extent of loss in case of adverse circumstances and also aims at enhancing the level of operational compliance.

 

“Limit on Assets under Custody” prescribes a limit to the extent of which a TREC holder (Broker) may have custody of securities under their control. As per the advice of SECP, the Maximum Custody Limit is 25 times of the reported Capital Adequacy Level. The method of calculating Capital Adequacy Level has been identified beforehand. This initiative would act as a damage control protocol when such situation arise.

 

This regime is applicable to all TREC holders and compliance is mandatory. CDC has also devised a set of periodic actions which will be taken against a TREC holders in case of non-compliance of these procedures.