cdc welcomes all the participants...
TRANSCRIPT
Investor Awareness Presentation for Sub-Account Holders & Investor Account Holders
CDC welcomes all the
participants to
Introduction
This Awareness Program has been specifically designed to: Educate Sub-Account and Investor Account Holders about their
roles and responsibilities in protecting their account and investment portfolios.
Introduce day-to-day account activities and CDC services in general.
Provide comprehensive knowledge about: Central Depository System,
Account Maintenance,
Transaction Execution Model, and
Value Added Services;
that help in managing and maintaining CDS accounts effectively.
Steps to execute trade at Stock Exchange
1st
UIN* creation
with
NCCPL 2nd
Open CDC Account with
Broker
3rd
Open a
Trading Account
with Broker 4th
Tagging
Sub A/c with
Trading A/c
5th
Open IAS A/c for custody (advisable)
1st
5th
* NIC/NICOP/Passport for Individual & Reg. No. of the entity for Corporate
Few steps to follow
for trading
Systems you should know about
UTS / KATS - Automated Trading System The system where securities are traded in an automated way,
managed by the respective Stock Exchange Limited.
NCSS National Clearing & Settlement System The system where clearing and settlement of all stock exchange
transactions takes place
This system acts as a middleware between CDC & SE data
UIN Unique Identification Number Used to record & maintain the traceable link for each & every
transaction executed in Stock Market
CDS Central Depository System Provides custody of the securities in book entry form. CDS eliminates
the need for physical movement of share certificates.
CDS Elements
Participants (Broker of Stock Exchange)
Eligible Pledgee (Banks, Stock Exchange & Clearing Company)
Issuers /Registrar & Transfer Agents (Securities)
Account Structure
CDS Account Structure
Participants Investor A/c Services
House Account (H)
(Proprietary A/c) Individual A/c
(IIA)
Corporate A/c (CIA)
Sub-Account
(C)
Differences between Investor Account & Sub-Account
Following are the key differences between Sub-Account & Investor Account:
* For trading purpose, Sub Account is mandatory
Investor Account Sub-Account*
Open with CDC
Custody account only
Under complete control
of IAS Account Holder
Open with Broker of Stock
Exchange
Direct Settlement
Controlled by Participant
Who is? What is?
Broker (TREC Holder) Stock Exchange
TREC Holder of the Stock Exchange.
Advises on the choice of shares to buy and the best time to sell.
Executes trade on Investor’s behalf on UTS / KATS.
Trade Transaction
Buying / selling activity executed between a buyer and a seller
Trade Transactions take place in consideration for a price
Online Trade
Placing buy/sell orders for securities (shares) with the use of a brokerage's internet-based proprietary trading platform.
Sections of Sub-Account Opening Form
Registration (and other) details of Main Applicant
Registration (and other) details of Joint Applicants
Other General Information
CDC Access Services
Sub-Account Operating Instructions
Bank Verification
Authorization
Registration (and Other) Details of Main Application
Account Title
Must be as per CNIC/ NICOP /Passport
Not updatable
Contact Person
Must be Title / Joint Account Holder or their Attorney
In case of Attorney, name, relationship and contact details are
required.
Attorney
Optional
Registration (and Other) Details of the Joint Application(s)
Joint Holders
Account Title cannot be a joint holder in the same account.
Maximum 3 Joint Holders are allowed.
Not Updatable.
Other Information Dividend Mandate
In case Dividend Mandate is marked as “YES”
Account Title
Account Number
Bank Name
Bank Branch Details
National Tax Number
(Optional)
Resident Status
Residential status of all joint holders must be same
Not updatable
Other Information
SCRA (Special Convertible Rupee Account)
Applicable for Non Resident Pakistanis and Foreign Nationals having
Repatriable Status
SCRA Account Number
Bank Name
Bank Branch Details
Zakat Status
Zakat Status of all joint holders must be same.
Applicable on Resident & Non Resident Pakistani
Other Information Nominee Details
Relationships must be in accordance with Sec 80 of the
Companies Ordinance, 1984 i.e. spouse, father, mother,
brother, sister and son or daughter, including step or adopted
child.
Incase of Joint Account, Nominee is not allowed.
Authorization under Sec. 12 & 24 of the CDC Act
Settlement of underlying market based trades
Pledge Transactions against exposure
For recovery of charges / dues / losses or payment
against purchase transactions
Investor’s
Responsibility
Review and submit signed CDS Account Opening Registration detail report to the Participant (Broker)
Provide separate authorization for transfer / withdrawal and pledging of securities for financing other than exposure
Clearance of Participant’s dues – Participant may dispose off the securities to adjust the outstanding dues and losses of Sub-Account holder, subject to serving prior written notice.
Obtain copy of the Account Opening
Form with an acknowledgment receipt
from the participant.
If Sub-Account is dormant, broker shall
serve 20 business days notice to the
account holder before closure.
Subscription to at least one free alert
service. i.e. eAlert / SMS.
Right
What are Reason Codes?
Reason Codes are used to move securities from one
Account to another.
To identify the nature of transaction.
Intra Participant Movement reason codes are denoted by “A”
Inter Participant Movement reason codes are denoted by “P”
Commonly used Transaction Types (Reason Codes)
For Portfolio Transfer *
Unlisted Securities movement
Transmission
Gift to Blood relatives (on request)
Gift to Non Blood relatives (on request)
* Effective 1st July 2012, securities transfer between two Sub-Accounts / IAS Accounts are only allowed if the all the account holders (Principal & Joint Holders) in both the Accounts are the same.
Movement of Securities in CDS
Settlement against Trade
Securities are settled directly in the Sub-Account as per
trading cycle without manual intervention of a Broker
Movement of Securities in CDS
Transactions other than settlement
All book entry delivery of securities without any corresponding movement of cash.
Intra Account Movement - Within the account family of a Participant or Investor Account (Sub /IAS to Sub/IAS)
Inter Participant Free Delivery - From one Broker to another or Investor Account Services
Movement of securities are executed on the basis of transaction type (Reason codes)
Transactions Handled Through CDS
Deposit
To convert physical certificates into electronic securities on approval of relevant Issuer
Electronic securities become available for movement from one account to another account
Withdrawal
Account Holders can withdraw securities from CDS in the form of physical certificates.
Transactions Handled Through CDS
Pledge
A facility to mark lien on securities in favor of Pledgee (Bank)
It is utilized to obtain the financial assistance against the securities and / or to obtain the exposure against the trading
Pledge securities are not available for any transaction until released by the Pledgee
Pledgee can call the securities in case of default
Securities released from pledge become available to the Account Holder for further transaction
Transfer of Holding through CDC
Facilitate movement of securities from Suspended /
Terminated / Restricted Participants.
Both accounts must be identical for movement.
Securities are transferred form one account to another
account instantly.
Corporate Action
Any Issuer Action which leads to distribution of benefits, entitlements, rights & information to its shareholders .i.e. Sub & IAS Account Holders is a CORPORATE ACTION.
Following are the common events takes place in CDS:
Cash Dividend
Bonus Issue
New Issue / Offer for Sale (IPO)
Merger / De-Merger
Right issue
Letter of Rights (LoR) & Right Shares
LoR are directly credited into the Sub Account.
LoRs are available for further transaction & transfer through automated system.
LoR are subscribed by paying the subscription amount in the bank.
Rights (shares) are credited in the account for further transaction.
The whole process is executed without any manual intervention.
Investor Account Holder may subscribe LoRs through CDC Offices, IVR, Web, email & Fax. Subscription form is emailed / couriered to the registered address of the account holder for payment of subscription amount to the bank.
CDC Access (free of cost services)
IVR
WEB
SMS
eAlert
eStatement
CDC Access IVR
CDC Access IVR is a round-the-clock Interactive Voice Response system,
supported by a state-of-the-art call centre available during business hours.
What is Relationship ID?
For availing IVR, Web and SMS services, Relationship Number is your
account identity, which is the combination of your Participant / Investor Account
Services (IAS) ID and your Account Number as per following:
What is T-PIN?
T-Pin is the 4 digit transactional personal identification
number through which you can access your Account
information via Interactive Voice Response (IVR).
Process for generating T-PIN
Call at 0800-CDCPL (23275).
After selecting the language preference, press 1 for self service.
Enter your 12 digit CDC Relationship Number. Generate your 4 digit
T-Pin and memorize it for future activities
CDC Access Web
CDC Access Website enables Account holders to access their account information via www.cdcaccess.com.pk
CDC Access SMS
CDC Access SMS gives an added level of convenience to investors by providing them their account movement & corporate action entitlement information on their mobile phones.
CDC Access
eStatement & eAlert
eStatement provides
Account Balance
Statements in the
clients email inbox on
a monthly or quarterly
basis.
In case of eStatement
is marked as physical,
Participant to dispatch
the physical A/c
Balance Statement to
Account Holder.
eAlert provides real-
time email alerts
about activities in
the Sub Account
Holder email inbox
How can I protect myself?
Activate CDC Access Services (i.e. IVR, Web, SMS, eStatement & eAlert) to get updated information about your account activity at all times. To activate services, kindly contact your respective Broker / Investor Account Services.
A/c Balance Statement is dispatched to Account Holder via email & courier.
Provide the email addresses in account details to receive the statement on monthly / quarterly basis.
In those cases, where eStatement is not subscribed, it is broker’s responsibility to dispatch the physical statement quarterly and IAS dispatches it on half yearly basis. In case of any issues in receiving such Statement, kindly contact your Broker or report discrepancy to the Stock Exchanges / CDC.
How can I protect myself? Periodically obtain the CDS Account Activity Report to
reconcile the movement and transaction executed in your sub account.
It is advisable to open an IAS Account to keep complete control over securities. Only move securities to broker at the time of executing trades and move securities from broker account to IAS immediately after these securities are settled in your respective account. SMS alert service provides you updated information of all transactions and movement executed in your account. For details about the transaction alert kindly visit CDC Website for more information.
Sub Account Holders are advised to visit following websites for updates
www.cdcpakistan.com www.cdcaccess.com www.ise.com.pk
How to Approach CDC
You may contact our relationship officers for any assistance
at
Toll Free Number
0800- 23275 (CDCPL)
or
email us your queries on
or
visit our Corporate Website for complete detail & information
www.cdcpakistan.com
