Recently, the Central Depository Company of Pakistan Limited (CDC) had announced that the number of accounts in its Investor Account Services (IAS) have crossed over 8,500.
Today, not long after that laud, this count has left behind the 13,000 mark and is still advancing.
This rise testifies the confidence of the growing capital market with CDC. Operating from Karachi, Lahore and Islamabad, IAS caters to the Pakistani capital market by providing secure, efficient and transparent services, which are vital constituents of investor -confidence nowadays.
The current policy of Government of Pakistan to privatise the equity base of huge national organisations through stock exchanges has been made possible greatly due to the infrastructure provided by CDC.
The unmatchable benefits of getting direct credit into the system (electronic book entry) have made these privatisation efforts not only highly efficient, but also cost effective for both issuers as well as investors.
These benefits include instant credit of shares, great marketability/liquidity, stamp duty and postage cost savings, reduced work load and costs for issuers, no time delays for investors, convenient accommodation of huge volume issues in the capital market etc.
The public offering decisions by the government are encouraging more and more retail investors to participate in the capital markets of the country.
After successful handling of IPOs of OGDCL and SSGC through Central Depository System (CDS), CDC hopes that the more investors will open accounts with IAS for future IPOs of PIAC, PPL, Kapco, etc, and reap its benefits.
These public offerings will enable CDC to serve the capital market better and move closer to its mission of making the capital market of Pakistan, the hub of financial activities in the region.
As per CDCPL regulations, following are the guidelines for investors who wish to opt for direct credit in their CDC investor accounts:
Credit of securities in only allowed in a subscriber's own/joint account (investor account or sub-account in CDS). Credit is not allowed in someone else's account.
Credit of securities is allowed in a group account of the participant in CDS. Credit of securities is allowed in the main account of the participant/account holder.
Ensure authentic/correct account information (account title, account number, participant ID) in the subscription form.
Furthermore, those interested to open investor/sub-accounts or those already having investor/sub-account are advised to regularly check their registration details for any discrepancies or errors and get them rectified immediately so as to avoid consequences.-PR