CDBL
The Central Depository Bangladesh Limited (CDBL) is a Depository.
A depository is like a bank for shares instead of money. Instead of
holding shares in the form of certificates, investors have accounts
in the depository and are able to move securities and settle stock
exchange transactions by an electronic update of their accounts.
The core service of a depository is the efficient delivery, settlement
and transfer of securities through a computerized book entry
system.
CDBL has been registered as a Depository by the Securities and
Exchange Commission under section 4 of The Depositories Act
1999, and regulation 5 of The Depositories Regulations 2000.
CDBL is a company set up the banks, stock exchanges and other
institutions to operate the central securities depository in our
country.
Overview
Depository Bangladesh Limited (CDBL) was incorporated on 20 th
August 2000 sponsored by the country's Nationalized Commercial
Banks (NCBs), Investment Corporation of Bangladesh (ICB),
Private Commercial Banks (PCBs), Foreign Banks, Merchant Banks,
Publicly listed Companies, Insurance Companies and Dhaka &
Chittagong Stock Exchanges with the collaboration of the Asian
Development Bank (ADB). Legal basis for CDBL's operations is set
out in the Depositories Act 1999, Depositories Regulations 2000,
Depository (User) Regulations 2003, and the CDBL by-laws.
CDBL's core services cover the efficient delivery, settlement and
transfer of securities through computerized book entry system i.e.
recording and maintaining securities accounts and registering
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transfer of securities; changing the ownership without any physical
movement or endorsement of certificates and execution of transfer
instruments. The Central Depository System (CDS) operated by
CDBL has proved to be a convenient and reliable means to settle
securities transaction. The investor has been freed from the hassles
of physical handling of certificates, errors in paper work and the
risks associated with damaged, lost and forged certificates.
CDBL's operations are carried out in its Main Data Centre which is
linked to a remote Disaster Recovery Centre operating as a backup
with data update taking place simultaneously. Network
connectivity to Depository Participants, Issuers, Banks, Stock
Exchanges and Bangladesh Bank is through Front End interfaces
accessed by WAN link and dial-up telephone lines.
Live operations of the CDS commenced with the inauguration of
the Electronic Government Securities Registry (EGSR) by the
Governor of Bangladesh Bank on 20 th October 2003. The EGSR
also serves as a platform for secondary market sale/purchase as
well as Repo transactions of government securities to commercial
banks linked online to the CDS. Equity market securities
dematerialization process i.e. eliminating physical certificate as
record of security ownership by substituting it as an electronic
book entry record in the CDS commenced on 24 th January 2004
with the entry of Square Pharmaceuticals Limited into the CDS.
Since 14th February 2003 CDBL has been acting as National
Numbering Agency for International Securities Identification
Number (ISIN) as partner in Bangladesh of Association of National
Numbering Agencies (ANNA) based in Germany. CDBL is a
member of Asia Pacific CSD Group (ACG) and an associate member
of South Asian Federation of Exchanges (SAFE).
CDBL Milestones
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December
2009
CDBL signs agreement with Bangladesh Online Ltd
(BOL) for enhancement of the company website using
open source technologies.
November
2009
CDBL adds CCTV cameras and Access Control Systems
as a first step to security measure responding to
increasing
terrorism related threats and accidents.
July 2009
CDBL hosts 11th ACG Cross Training Seminar at Pan-
Pacific Sonargaon Hotel, Dhaka, Bangladesh on July 3-4,
2009.
May 2009 On May 28, 2009 CDBL establishes a permanent base
for Customer Service and Technical Support (CSTS) at
the
Disaster Recovery Center .
May 2009 Activation of our Data & Disaster Recovery Center
(DDRC) at Topekhana Road, Dhaka for live production
functions on
May 28, 2009.
April 2009 CDBL signs agreement with E.B.Solutions Ltd for SMS
Alert Services for BO's on April 23, 2009.
January
2009 BO Account setup in CDBL surpass two million.
October
2008 CDBL completes five years of depository operations
June 2008 90% threshold reached of stock exchange trades settled
in the CDS
February
2007 BO accounts setup in CDBL surpass 1 million
January
2007
Dematerialized securities held in CDBL surpass BDTk.
100 billion
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August
2006
Global Internet Securities Balance Enquiry and Portfolio
Valuation Service for BO accountholders launched
August
2005 BO accounts setup in CDBL surpass 500,000
December
2004 BO accounts setup in CDBL surpass 100,000
January
2004
Dematerialization of equity market securities
commenced with the entry of Square Pharmaceuticals
Limited into the CDS
October
2003
Electronic Government Securities Registry (EGSR) live
operation inaugurated by the Governor of Bangladesh
Bank
February
2003
Became National Numbering Agency for ISIN
(International Securities Identification Number) in
Bangladesh
September
2001 Depository Registration Certificate awarded by the SEC
July 2001 Contract signed with the depository system provider
CMC Limited
August
2000 CDBL Incorporated
June 2000 Request For Proposal (RFP) issued to implement the
country's first automated Depository System
June 2000 Depository Regulation 2000 gazetted by the SEC
June 1999 Enactment of Depositories Act 1999
Eligible Securities
CDBL do not hold any physical share. Only the dematerialized form
of securities is considered eligible to be held in CDBL. In declaring
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any securities to be Eligible, CDBL shall be guided by all or any of
the following criteria:
Listing on a Stock Exchange;
Whether government or private debt Security;
The number of trades and the volume of that Security during
the immediately preceding three year period;
Investor interest in dealing in such Security;
Issuer of the Securities must have the capacity to
communicate reliably with CDBL in accordance with User
Manual.
Eligible Issuer
CDBL agree with issuers when their securities are to be made
eligible and The Securities And Exchange Commission (SEC)
publishes this information to the market. Once a listed security has
been declared an eligible security by the SEC such then securities
that are traded on an exchange:
Issuer must do the following after securities are declared as
eligible:
Provide an undertaking / opinion on the validity of the issue
and regulatory compliance;
Sign an agreement with CDBL in specified form or any other
form as may be mutually agreed;
Make initial deposits and pay initial fees as are specified in
the Fees and Deposits Schedule;
the Issuer in accordance with the User Manual within five Business
Days of the Record Date.
Communication with CDBL
Issuer needs to install a computer with the minimum capacity as
specified in the User Manual and Load such interface software as is
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supplied by CDBL onto that computer. The Issuer must carry out
addition, modification, upgrade or replacement of the hardware
and software as may be specified by CDBL at its own cost from
time to time.
CDBL shall provide the Issuer with access to the CDBL System to
download in accordance with the User Manual:
All information in respect of the Issuer’s Security as recorded
in the CDBL Register giving particulars of members and
status of their holdings detailing Securities under Pledge,
under Freeze, free balance, and total balance;
Pending requests for Dematerialization of Issuer’s Securities;
Dematerialization request confirmed during the day;
Pending requests for Rematerialization of Issuer’s Securities;
Rematerialization request confirmed during the day;
Corporate Actions setup during the day;
Corporate Actions processed;
IPOs processed during the day;
Securities that have been eliminated;
Report on cash and non-cash calculation for Corporate
Actions;
Report on cash entitlement for Corporate Actions.
Corporate Action
The Issuer shall advise CDBL of all Corporate Actions
simultaneously with the intimation to Stock Exchanges in case of
both listed Securities and unlisted Securities with prior notice of
seven Business Days from the Record Date. On receiving such an
advice, CDBL will provide the details of the Account Balances and
Account Holders to
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Depository Participants
The following types of organizations may become CDBL
participants:
Stock Brokers and Dealers (members of the Dhaka and
Chittagong Stock Exchanges);
Banks;
Financial institutions;
Insurance companies;
Statutory organizations;
Merchant bankers;
Asset managers;
Custodians; and
Any other Capital Market Intermediaries registered with the
Commission.
Participant Categories
Participants are divided into the following categories:
Trading Participant
Trading Participants May only settle stock exchange trades and
cannot maintain accounts on behalf of customers. Only stock
broker and stock dealer can be trading participant and can
maintain clearing account to settle transaction with the stock
exchanges.
Full Service Participant
This is a stock exchange member who may hold shares and operate
accounts of its own, on behalf of customers and maintain clearing
account as well.
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Custody Participant
Custody Participants may hold shares and operate accounts of their
own and on behalf of customers but is not a stock exchange
member. They can manage the clearing account of the stock broker
or dealer.
Settlement Agent Participant
Settlement Agent Participants may settle stock exchange trades on
behalf of stock broker or dealer. These agents must be approved by
the commission.
Communication with CDBL
The CDBL Participant needs to install such computers, printers,
communication equipment and uninterruptible power supply units,
systems software and any other equipment, hardware and software
specified by CDBL for CDBL related activities. The participant also
needs to upgrade or replace the same from time to time.
CDBL provides necessary Operating Instructions / User Manual
from time to time to the Participant, for effective and prompt
conduct of the business relating to depository operations.
Participant must procure and maintain at its own cost such
systems, procedures, means of communication, infrastructure,
hardware, software, security devices and back-up facilities. It also
needs to comply with all systems and procedures recommended by
CDBL and shall allow access to its systems to one or more teams of
professionals in the event of a problem with the interface with
CDBL.
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After establishing the interface, participant can communicate with
CDBL. Participant must ensure proper administration of passwords
and security access to the CDBL network so that no person has
access to that interface. Participants are to change the security
password once in a month as directed by CDBL. CDBL will give
prompt notice to the participant in case of any disruption in
communication. Participant will then take necessary step to resolve
the problem.
CDBL shall provide the Participant following reports for
downloading from its CDBL interface workstation:
Standing data relating to accounts maintained by that
Participant;
Balances on accounts maintained by that Participant;
The status of all such balances, e.g. frozen, pending demat
etc.;
All Transactions that have taken place on the account within
the last three months;
Pending and completed corporate actions;
Such other information as is specified in the User Manual.
CDBL Services
Account Opening
Depository Participants and investors can open account with CDBL.
Where the account is in the name of the investor then the Law
provides that the account holder is a member of the company even
though his securities are dematerialized.
The participant is required (under the regulations) to provide
statements on at least a monthly basis if there are movements on
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the account. Even if there are no movements the participant must
provide a quarterly statement.
There are several types of accounts that CDBL maintains. They are
explained below:
Clearing Account
Clearing Account is opened for the purpose of settling market
obligations. When a security is sold, the seller participant transfers
the security to its clearing account. CDBL collects the security from
the account and send it to the buyer participants clearing account
on the basis of settlement cycle. Trading participant, custody
participant, settlement agent participant and full service
participant can operate clearing account to settle the transactions
in the stock exchanges.
Principal Account
Principal Account is opened for the purpose of holding its own
Securities available to all CDBL Participants. Trading participant,
custody participant, and full service participant can open this
account.
Customer Account
Customer Accounts are opened for the purpose of holding
Securities of Account Holders. Investors may open an account with
any CDBL participant. A person may open a Customer Account with
one or more CDBL Participants. Institutional investors may, if they
wish, open more than one account with a single CDBL Participant.
The participant will request the investor to sign an agreement
which will set out the rights and duties of both the investor and the
participant. The participant will then open an account for the
investor at CDBL. Full service participant and custody participant
can use this account to preserve securities in the name of their
investors.
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Omnibus Account
Normally the account will be in the name of the investor. If the
participant is going to mix one investor’s securities with another in
an omnibus account then this must be specifically stated on the
agreement. Full service participant and custody participant can
open this account.
Direct Accounts
CDBL is offering a service to investors who wish to hold their
securities in dematerialized form but do not wish to use a
stockbroker or a bank to do so.
Investors will be asked, by CDBL, to complete an account opening
form. They will then be able to dematerialize existing holdings by
giving the certificates to CDBL or to their stockbrokers and
completing the dematerializations request form.
When they wish to sell their securities they should instruct CDBL in
writing to transfer the required number of securities to the
stockbroker. When they buy they should instruct their stockbroker
to transfer the securities to the Direct Account following the
settlement day. It is not necessary, in this case, to instruct CDBL.
CDBL will not handle funds and investors must make arrangements
to settle payments directly with their stockbrokers.
CDBL will issue statements directly to the account holder on a
monthly basis, if there are any movements and on a quarterly basis,
if there are no movements.
Pay In and Pay Out
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Pay In is the process of receiving shares from participants through
clearing account after investor has sold his shares. In case of Pay
In settlement cycle is T+0. It means seller participant must give the
share on the day of transaction has occurred.
Pay Out is the process of giving shares to the buyer participant
through clearing account after receiving those from the seller
participant through Pay In process. In this case settlement cycle is
T+3 for A,B,G and N category shares; T+1 for spot market shares;
T+9 for Z category shares and T+5 for foreign trade.
The Pay In and Pay Out process is shown in the following figure:
Dematerialization
Dematerialization is a process by which physical certificates are
converted into electronic form.
Once a security is eligible for holding in CDBL then all stock
exchange trades must be settled through the depository. This
means that sellers must have securities in the depository (i.e. the
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CDBL
Participant’sClearing Account
Seller Participant
Send shares on T+0 from
Investor’s BOCollect shares
Participant’sClearing Account
Buyer Participant
Send shares on
T+1 for SpotT+3 for A,B,G,N
T+9 for ZT+5 for Foreign Trade
Collect shares and distribute to
investor’s BO
securities must have been dematerialized) before the broker can
execute the sale order.
To dematerialize securities investors should take their share
certificates to a participant. The participant will request the
investor to complete a dematerialization request form. The
participant will take the documents to the issuer who (if the
certificate is valid) will update the register by moving the securities
from the certificated portion of the register to the depository
portion. The issuer will then confirm the dematerialization to the
depository and the depository will credit the securities to the
investor's account.
The participant will be able to see the balances in all the accounts
that they control through a computer link with CDBL.
Investors do not need to wait until they wish to sell to dematerialize
their holdings. Once a security is eligible, investors may open
accounts and lodge securities at any time.
Rematerialization
Rematerialization is a process by which Electronic shares are
converted into physical share certificates.
To rematerialize securities that are in a CDBL account the account
holder must instruct the participant through which he holds his
account by completing a rematerialization request form.
The participant will instruct CDBL and the securities will then be
debited from the account upon confirmation by the issuer.
The issuer will transfer the holding from the depository portion of
its register to the certificated portion of its register.
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The issuer will provide the investor with a share certificate within
30 days of rematerialization.
Off Market Settlement
Off market settlement is no more in practice now. DSE has banned
this type of settlement. In this case, an Account Holder can transfer
Securities through the mechanism of a matched transaction.
An Account Holder may use this mechanism where:
1. Payment for a transaction is due to take place outside of the
Stock Exchange; or
2. For any other reason at the discretion of the Account Holder
and with the agreement of both Participants.
An investor who wishes to transfer Securities through the
mechanism of a matched transaction shall give a completed Off
Market Transfer Request Form . On receipt of an Form for either
receipt or delivery of Securities, the Participant shall enter the
Transaction into the CDBL system in accordance with the User
Manual.
Suspension of Account
Every Account Holder shall have an option to suspend his/her
Account with the CDBL. The CDBL Participant shall then suspend
the Account of an Account Holder maintained with it on written
instructions received by the CDBL Participant from the Account
Holder.
An Account Holder shall have an option to suspend the Account
either for buy or sell or both.
The CDBL Participant shall suspend the Account of an Account
Holder on written instructions received by it in this regard from
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CDBL pursuant to the orders of the Commission, or any order
passed by a court in this regard.
CDBL shall direct a CDBL Participant to suspend an Account
opened by the CDBL Participant with itself or suspend an account
itself in respect of Securities held by the CDBL Participant in its
own name:
1. On the orders of the Commission or any court in this regard;
and
2. If the CDBL Participant becomes insolvent, bankrupt or in
case of a body corporate being wound up.
An Account Holder may suspend his Account by making an
application to his CDBL Participant on the Account Suspension
Request Form as specified in Form 03. On receipt of the Account
Suspension Request Form, the CDBL Participant shall accept the
request and suspend the account in accordance with the User
Manual / Operating Instruction.
Release of Suspension
The suspended Account may only be released on the instructions of
the authority under whose directions such Account was suspended.
An Account shall be released on instructions in writing from an
Account Holder, where it has been suspended at the instance of the
Account Holder, and on receipt of instructions from CDBL pursuant
to the passing of any order of suspension by the court or the
Commission.
An Account Holder may release the suspension by making an
application to its CDBL Participant on the Account Suspension
Release Request Form.
Freeze of Account
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Every Account Holder shall have an option to freeze securities in
his account with the CDBL Participant so as to render it inoperable
for a period of time. The CDBL Participant shall freeze the
Securities of an Account Holder maintained with it on written
instructions received by the CDBL Participant in that regard from
the Account Holder.
The Account Holder shall have an option to Freeze the full or
partial amount of any Security holdings.
The Freeze may specify a specific period for the freeze. Once the
specified period has expired the Freeze shall be automatically
released. If no period is specified, the Freeze shall only be released
when the Issuer confirms the acceptance of a Freeze Release.
The CDBL Participant shall freeze the Securities of an Account
Holder on written instructions received by it in this regard from
CDBL pursuant to the orders of the Government, the Commission,
or any order passed by a court, tribunal, or any statutory authority
in this regard.
Release of Freeze
Where the Freeze is established for a specified period of time, then
the Freeze will be automatically released at the end of that period
without further action by the Account Holder, the Participant or the
Issuer.
In other cases the frozen Account may only be released on the
instructions of the authority under whose directions such Account
was frozen. An Account shall be released on instructions in writing
from the Account Holder, where it has been frozen at the instance
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of an Account Holder, and on receipt of instructions from CDBL
pursuant to the passing of any order of freezing by the court,
tribunal or the Commission. An Account Holder may release the
Freeze by making an application to its CDBL Participant on the
Freeze Release Request Form as specified in Form.
Change of Ownership
Transfer
Transfer means moving Securities from one Account to another
within a single CDBL Participant or to another CDBL Participant.
An account holder must fill in a Transfer Request Form to transfer
their securities, and then submit the form to their CDBL
Participant.
Transfer to Linked Account
An Account Holder who wishes to transfer Securities from his
Account to a Linked Account with another Participant shall give a
completed Transfer Request Form as specified in Form to his
Participant or to CDBL if he is a Direct Account Holder. The
Participant or CDBL, as appropriate, shall enter the Transaction
into the CDBL System in accordance with the User Manual.
On the Settlement Date specified in the Transaction, the Securities
will be debited from the balance in the Account managed by the
Participant who enters the transaction and credited to the Linked
Account.
Single Sided Transfer
An Account Holder who wishes to transfer Securities, without a
Stock Exchange trade, from his Account to another Account with
the same Participant or to an Account with another Participant
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shall give a completed Transfer Request Form to his Participant or
CDBL as the case may require.
This type of transaction may be used by:
(a) Direct Account Holders to transfer Securities to the
Clearing Account of their Stock Broker; or
(b) By any Account Holder to make a transfer to another
account at his discretion.
CDBL Participants shall ensure that the proposed transfer has the
appropriate approval of the Commission as required prior to
entering the transaction into the system. On receipt of a valid
Transfer Request Form, the Participant or CDBL, in the case of
Direct Accounts, shall enter a Transaction into the CDBL System in
accordance with the User Manual.
On the Settlement Date specified in the Transaction, the Securities
will be debited from the balance in the delivering Account and
credited to the receiving Account.
Transfer from Suspense Account
Issuer may open suspense account with a CDBL participant where
the unclaimed bonuses are preserved. When investor claims his or
her bonus share to the company, the company directs the
participant to transfer the specified number of shares to his or her
BO account. Participant communicates with CDBL to transfer the
shares to the specific investor’s BO account.
Transmission
Transmission means the Transfer of all Account Balances of an
Account Holder to another Account. In order for the Account
Holder to perform a Transmission, they must first fill in a
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Transmission Request Form and then submit it to their CDBL
Participant.
Account Holders may instruct their Participant or CDBL, in the
case of Direct Accounts, to transfer all the holdings in their account
to another account by submitting a completed Transmission
Request Form. After receiving a valid Transmission Request Form,
the Participant will enter the Transaction into the CDBL System in
accordance with the User Manual. Participants must ensure that
the proposed transmission has the appropriate approval of the
Commission / Stock Exchange.
On the Settlement Date specified in the Transactions, all balances
will be debited from the balance in the delivering Account and
credited to the receiving Account.
Transmission on Death
Every Account Holder will inform CDBL Participant the name of
nominee who will be the owner of the securities of the account
holder after the death of him at the time of opening an Account
with or at any time. Where any Account is opened or stands in the
names of two or more persons, the nomination in favor of such
nominee shall be made jointly by all such persons.
In the event of the death of the Account Holder, the Securities that
he owns shall vest in the nominee. If such nomination is not made,
succession to such Securities shall be determined in accordance
with law in favor of the heirs.
Gift
Investor may transfer to another person’s BO account as gift. In
this case investor must fill up prescribed form and provide it to his
participant. If the person has blood relation to who share is gifted,
intimation must be taken from stock exchange. If there is no blood
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relation exists, intimation from SEC and stock exchange must be
taken.
Pledging
Account Holders may use the shares in their depository accounts as
collateral against a loan.
The pledgee must be a participant or a depository account holder.
The Pledgor gives instructions to his participant to pledge his
shares to the pledgee. The Pledgee must confirm acceptance of the
pledge.
The shares are then ‘frozen' in the account of the pledgor and
cannot be moved until instructions are received from the pledgee.
The instruction from the pledgee may be to ‘release' the pledge (for
example if the loan has been repaid) or to move the shares to his
own (or a third party) account (for example, if the pledgor has
defaulted on his repayments).
As the shares remain in the account of the pledgor (although
frozen), the pledgor will receive all benefits (e.g. dividends and
bonus issues) and will still be able to vote.
Unpledge
Pledgee can upledge the securities. The Pledgor shall request
cancellation of the Pledge by forwarding an Unpledge Request to
his CDBL Participant. On receipt of the URF, the CDBL Participant
of the Pledgor shall electronically register the cancellation request
with CDBL.
Upon acceptance of the unpledge request by the Pledgee as
advised by his CDBL Participant, CDBL System shall electronically
unmark / release the lien on the Securities no longer pledged.
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Confiscate
In case of confiscate, the securities of that were pledged, are
transferred to the pladgor’s account. The Pledgee may confiscate
the pledged securities by forwarding a Confiscate Request to CDBL
through his CDBL Participant. CDBL will transfer the Securities
from the pledgors Account subject to satisfactory instructions of
the Pledgee.
BO Account Balance Enquiry Service
CDBL offers Web based BO Account Balance Enquiry Service to the
Beneficiary Owner (BO) Accountholders giving details of Share
holdings with Portfolio Valuation of their BO Accounts. Investors
must register online to get this service at fee of Taka 200.
CDBL SMS Alerts Service
CDBL offers SMS Alerts to the Beneficiary Owner (BO)
Accountholders mobile phones giving details of debit-credit
transactions that have taken place in their accounts.
To register for the SMS Alerts Service BO Accountholders may
download the SMS Alerts Registration form, fill it up and send it
back to CDBL with onetime registration fee of Taka 200.
Fees and Charges
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FEES PAYABLE FOR DEPOSITORY SERVICES
S# TYPE OF FEES RATE OF MINIMU
M
BASIS OF
FEES PAYABLE BY
WHEN
PAYABLE MODE
FEES FEE
(Taka)
1. Dematerialization
Fee
TK
0.00025 5
Market Value
of SecuritiesParticipants Month end P.O./Draft
2. Transaction Fee TK
0.00025 5
Market Value
of Securities
Participants /
Account Holders Month end P.O./Draft
3. Custody Fee 0.050%
p.a. 5
Market Value
of Securities
Participants /
Account Holders
Month end
(calculated on
a daily basis)
P.O./Draft
4. Depository
Connection Fee
TK 500
p.m. -
Fixed monthly
fee for the
first
connection
Participants /
Issuers
Monthly in
advance P.O./Draft
5.
Additional
Depository
Connection Fee
TK 5,000
p.m. -
Fixed monthly
fee for each
additional
connection
Participants /
Issuers
Monthly in
advance P.O./Draft
6. Annual Fee on
Face Value of
Issued Eligible
Securities -Up to
TK 5 crore -Above
TK 5 croreto TK 20
crore -Above TK 20
crore
TK
25,000/-
TK
50,000/-
TK
100,000/-
-
Fixed
annually fee
per Eligible
Security
Issuer Annually in
advance
P.O./Draft
7. Fresh Issue / IPO
Fee
TK
0.00025 - Issue Price
Issuers /
Participants
With
Application /
Month end
P.O./Draft
8. Rematerlization
Fee TK 0.10 100 Per share
Participants /
Direct Account
Holders
Month end P.O./Draft
9. Documentation
Fee TK 2,500/- -
One time,
fixed
Participant /
Issuer / Direct
Account Holder
On account
opening P.O./Draft
10.
Application Fee
for Statement /
Statement
Verification Fee
TK 10/- - Per page Account HolderWith
application
Cash/PO/
Draft
SCHEDULE OF SECURITY DEPOSITS
S# SECURITY DEPOSIT PAYABLE BY AMOUNT BASIS WHEN
PAYABL
E
MODE
1. Full Service and Custody Participants TK 200,000/- One time, fixed, On P.O./Draft
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refundable
signing
of
agreeme
nt
2. Trading and Settlement Agent Participants TK 50,000/-One time, fixed,
refundable
On
signing
of
agreeme
nt
P.O./Draft
3. Direct Account Holders TK 25,000/-One time, fixed,
refundable
On
account
opening
P.O./Draft
4. Issuers based on Face Value of Issued Eligible
Securities -Up to TK 5 crore -Above TK 5 crore
up to TK 12.5 crore -Above TK 12.5 crore up to
TK 25 crore -Above TK 25 crore up to TK 50
crore -Above TK 50 crore
TK 100,000/-
TK 200,000/-
TK 300,000/-
TK 400,000/-
TK 500,000/-
One time, fixed per
Eligible Security
15 days
before
the
eligibilit
y date
P.O./Draft
Importance of CDBL
Without any Depository, following shortcomings of settlement are
faced:
Lengthy delays in delivery, settlement and transfer of
securities;
Tedious procedures for verification of securities and transfer
deeds;
Considerable time involved in dispatching cash dividends and
bonus shares;
Risk of damaged, lost, forged and duplicate securities;
Serious problems associated with physical custody;
Tedious procedure involved in pledging of physical securities
to raise capital.
CDBL, by converting physical certificates into electronic form, will
eliminate the risks of damaged, lost, forged and duplicate share
certificates. The instantaneous delivery through electronic book
entry will result in immediate transfer of ownership, which
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presently can take over a month. CDBL, in the long term, will also
reduce the costs of the investing public.
Investors will enjoy many benefits in buying and selling shares in
the depository mode, such as:
Instantaneous transfer. No delays in delivery, settlement or
transfer
Elimination of risks associated with physical certificates such
as fake, duplicate shares, protection against loss, mutilation
or theft of share certificates etc.
Reduced hassle of paper work
Faster settlement cycles
Convenient method of consolidation of folios / accounts;
Holding investments in equity, debt instruments and
Government Securities in a single account
Speedy disbursement of non-cash corporate action benefits
like bonus and rights into investors accounts
Electronic credit of new issues (IPO) into investors accounts
Regular account status updates available to investors at any
point of time.
Conclusion
CDBL) is a dynamic, forward looking institution committed to adding value to the
business of its clients. It is equipped with up-to-date Information Technology to
ensure prompt customer response and provide innovative solutions to the needs of the
capital market playing a pivotal role in Bangladesh’s financial services sector.
CDBL is a virtual warehouse where all the electronic shares and
securities are kept. Under this system CDBL, Issuer and Depository
Participants work as a team. Investors are able to hold their securities in
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dematerialized form in a CDBL account. This removes the problems associated with
physical certificates. This system has eliminated the risks of damaged,
lost, forged and duplicate share certificates as well as ensured
security and improved efficiency.
Bibliography
www.cdbl.com.bd
Depository Act, 1999
Depository Regulations, 2000
Depository Regulations, 2003
CDBL Bye Laws
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