Central depository of Pakistan

1. • By Muhammad Mazhar
• Sikander Hayyat Sheikh
• PhD (CyS)
Central Depository Company of Pakistan(CDC)
An Analysis
By: Mazhar Waqar &
Sikandar Hayyat
PhD - CYS

2. Agenda
• Introduction
• Transactions Handled By CDC
• CDC Certifications
• Departments
• Organization
• Organization Management
• Services Offered
• Scope of Services Offered
• Threat Landscape
• Executives of CDC
• Conclusion
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3. Introduction (2 of 3)
• Incorporated as a public limited (Unlisted) company in 1993,
Central Depository Company of Pakistan Limited (CDC) is the
only depository in Pakistan.
• The Company started operations in September 1997.
• CDC is the Sole Entity handling the electronic (paperless)
settlement of transactions carried out at all three stock
exchanges of the country.
• The main function of CDC is a create and maintain the Centra
Depository System CDS drawing guidance from a well-
designed legal framework laid down by Securities and
Exchange Commission of Pakistan (SECP).
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4. Introduction (3 of 3)
• CDS is an electronic book entry system used to record and
maintain securities and to register the transfer of securities.
• The system changes the ownership of securities without any
physical movement or endorsement of certificates and
execution of instruments.
• CDS facilitates equity, debt and other financial instruments in
the Pakistani Capital Market.
• It manages Ordinary & Preference shares, TFCs, WAPDA
Bonds Sukuk etc.
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5. Transactions Handled By CDC
• Deposit of Securities.
• Transfer of Securities.
• Pledging of Securities.
• Pledge Release.
• Pledge Call.
• Withdrawal of Securities.
• Corporate Action Regulated by SECP.
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6. Departments (1 of 2)
• Investor Account Services (Est 1999)
• Allows the retail and corporate investor to open and maintain custody
accounts directly with CDC.
• Trustee and Custodial Services (Est 2002)
• Serves as a Trustee to Open-end and Closed-end Mutual Funds and
Voluntary Pension Schemes.
• CDC Share Registrar Services Limited (Est 2008)
• Provides share issuing companies state-of-the-art facilities of registrar and
transfer agents, including customer dealing on behalf of the companies.
• ITMinds Limited (Est 2009)
• Provides Business Process Outsourcing (BPO) services which include
provision of back-office accounting functions to the Mutual Fund industry.
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7. Departments (2 of 2)
• Operations & Customer Support Services
• Information Technology
• Legal, Finance & Company Secretariat
• Human Resource
• Administration
• Internal Audit and Risk
• Enterprise Security
• Compliance
• Product Development & Marketing.
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8. Threat Landscape
• Ransomware:
• At CDC, they have data resilience achieved via replication among 3
geographically dispersed data centers to avoid single point of failure.
• The arrangement ensures high availability, business continuity and
disaster recovery at a zero data loss.
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11. Organization Hierarchy
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12. Organization Hierarchy Cont.
• The Chief Internal Auditor functionally reports to the Board and
administratively reports to the Chief Executive Officer.
• The CEO of CDC is Badiuddin Akber.
• Shariq Jafrani is CFO and Company Secretary.
• Muhammad Yaseen is Chief Internal Auditor.
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13. Services Offered
• Investor Account Services (IAS):
• Investor Account Services (IAS) allows retail investors to directly
open and maintain accounts with CDC in Central Depository
System for secure and safe custody of securities.
• Investors have direct access to their securities through Investor
Account, which are maintained by CDC and operated on the
instructions of investors.
• Trustee & Custodial Services (T&C):
• Currently, CDC is acting as a Trustee with 88% market share in
terms of number of Funds and 96% market share in terms of the
Net Assets in various categories of Mutual Fund in Pakistan.
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14. Services Offered Cont.
• CDC Share Registrar Services Limited (SRS):
• It facilitates Share Issuing organizations and their shareholders. CDCSR offers a
composite portfolio of maintenance, registration, verification and direct customer dealing
& interaction.
• Centralized Information Sharing Solution for Insurance Industry (CISSII):
• This automation and sharing of information were achieved through the Centralized
Information Sharing Solution for Insurance Industry which provides a centralized
database hosted by a neutral and independent institution, such as CDC, and which has
a track record of managing secured and huge databases with state-of-the-art
infrastructure having built-in information security features.
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15. Services Offered Cont.
• Investor Portfolio Services (IPS)
• Facilitating investors in opening and maintaining an Investor Portfolio Services (IPS)
Account to keep Government Securities with CDC since 2014.
• Another such initiative which has been launched in 2020 to facilitate Capital Market
investors is the facility that assists TREC Holders & their clients to pledge their
Government Securities held in CDC IPS account in favor of NCCPL as margin against
their equity trades, like any other capital market security, without transferring ownership.
• Shared KYC & Roshan Digital Account
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16. Scope of Services: T&C
• Transaction Settlement.
• Nominal Ownership of the Assets.
• Compliance with Regulatory Requirements.
• Corporate Actions.
• Portfolio Reporting.
• Tax Reporting.
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17. Scope of Services: SRS
• Maintenance of computerized Members' Register.
• Maintenance of specimen signatures of shareholders.
• Dealing with Security holders on SRS Counter, telephone, through
mail and E-mail.
• Verification of Security holders' signatures on Transfer Deeds and
Proxy Forms etc.
• Physical Transfer of Securities.
• Deposit of Securities into CDS, Withdrawal of Securities from CDS
and transmission of physical certificates / Securities etc.
• Issuance of duplicate certificates and dividend warrants against
appropriate indemnities and fulfillment of formalities.
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18. Scope of Services: SRS Cont.
• Split / Consolidation / Renewal of certificates.
• Dividend Entitlements and Payments to Security holders.
• Bonus Shares issuance to Security holders with fractional shares
payment.
• Custody of undelivered certificates and dividend warrants, etc.
• Preparation of reports related to the securities and Security holders
for filling with Issuers / Regulators.
• The operations of the company are carried out by a team of highly
talented and experienced professionals belonging to a wide
spectrum of relevant disciplines with graduate and postgraduate
qualifications from distinguished local and foreign institutions.
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19. Scope of Services: SRS Cont.
• Taking attendance of Security holders in Annual General
Meeting (AGM) / Extra-Ordinary General Meeting (EOGM).
• Compliance of legal obligations as Share Registrar / Transfer
Agent.
• Other standard Share Registrar department activities such as
dispatch of Annual / Half/Yearly Accounts, etc.
• They also have future plans of handling the following
transactions (IPO handling, Registrar Services to Open Ended
Mutual Funds).
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20. CEO
• CEOs are responsible for managing a company's overall
operations.
• This may include delegating and directing agendas, driving
profitability, managing company organizational structure,
strategy, and communicating with the board.
• Badiuddin Akber is CEO of CDC.
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21. COO
• A COO, or chief operations officer, oversees a company’s
business operations and reports to the CEO.
• A COO ensures the company has effective operational and
financial procedures in place.
• Abdul Samad is current COO of CDC.
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22. CIO
• A chief information officer (CIO) is the company executive
responsible for the management, implementation, and usability
of information and computer technologies.
• Syed Asif Shah is serving as CIO of CDC.
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23. CISO
• The CISO (chief information security officer) is a senior-level
executive responsible for developing and implementing an
information security program, which includes procedures and
policies designed to protect enterprise communications,
systems and assets from both internal and external threats.
• Syed Hassan Aslam is current CISO of CDC.
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24. CFO
• The CFO is the top ranking executive related to managing a
company's finances.
• This includes managing all aspects of financial and cash flow
planning, as well as analyzing its financial position.
• Shariq Jafrani is CFO of CDC.
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25. CCO
• The Chief Compliance Officer, one of the most important
members of the management team, is primarily responsible for
overseeing compliance within an organization, and ensuring
compliance with laws, regulatory requirements, policies, and
procedures.
• Hammad Ali Faisal is Chief Compliance Officer of CDC.
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26. CIA
• Chief Internal Auditor are responsible for ensuring that their
organization is following all applicable laws and regulations.
• They also commonly provide guidance to other employees on
how to comply with these rules, as well as advice on how to
avoid breaking them in the future.
• Muhammad Yaseen is the Chief Internal Auditor of CDC.
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27. • Thankyou 
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