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Climb up the mountains cliffs and hills reach the height feel the thrill THE SLATE CUSTODIAN ISSUE NO. July-December, 2016 66
Climb up the mountainscliffs and hillsreach the heightfeel the thrill
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ISSUE NO.
July-December, 2016
66
Quarterly NewsletterCentral Depository Company
Levels in Nature
Mountain
Ocean Land Mountain
Elevating from the ground with steepness and continuity to form peaks and reach altitudes, mountains are dynamically rich hubs of life and reservoirs of fresh water. With the course of time, these mighty summits evolved by the action of volcanic eruptions and frost; shaping into symbols of struggle and achievement.
Likewise, Capital Market is a hub of evolving opportunities for investors and stakeholders to climb and grow through upstream financial paths, formed over decades, and reach heights of success. Such rich and challenging financial market systems are systemized by CDC to bring greater safety and stability to the investors.
LEVEL
03
Registered Offices:
Head Office:CDC House, 99-B, Block ‘B’, S.M.C.H.S.,Main Shahra-e-Faisal, Karachi - 74400.Tel: (92-21) 111-111-500 I Fax: (92-21) 34326031
PSX Branch:Mezzanine Floor, Pakistan Stock Exchange BuildingI.I Chundrigar Road, Karachi.Tel: (92-21) 32416774 I Fax: (92-21) 32444491
Islamabad Branch:Room # 410, 4th Floor, ISE Towers REIT Management Limited, 55-B, Jinnah Avenue, Blue Area, Islamabad.Tel: (92-51) 2895456-9 I Fax: (92-51) 2895454
Lahore Branch:307, 2nd Floor, Upper Mall, Lahore - 54000.Tel: (92-42) 35789378 I Fax: (92-42) 35789340
Abbottabad Office:1st floor, Al-Fateh Shopping Centre, Opp. RadioStation, Mansehra Road, Abbottabad.Tel: (92-992) 331529-31
Email: [email protected]
URL: www.cdcpakistan.com
Customer Support Services:0800 – 23275 (CDCPL)
For Overseas Callers: +92 (21) 34326038
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Deep is the truth the truth of successfight the waves and reach the depth
ISSUE NO.
January-March, 2016
64
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Let your travelnever end
though the roadmay sometimes bend
ISSUE NO.
April-June, 2016
65
Climb up the mountainscliffs and hillsreach the heightfeel the thrill
July-December, 2016
Contents0102030607080910
11121314
Regional Leadership Role for CEO-CDC
CDC participates in the 20th ACG AGMand Conference in Tehran, Iran
Financial Literacy Workshops in Karachi and Lahore
Alfalah GHP Outsources Back Office Functions ofVoluntary Pension Funds to ITMinds LimitedITMinds Limited offers BPO Services for Accountingof Retirement Benefit Schemes
Global Buzz: CDC signs MoU with Sri Lankan CDS
CDS Updates
Notice Board
Statistical Highlights
Foreign Delegations visit CDC
Health Register added to CISSIICDC hosts dinner in honor of Mr. Mushtaq Chhapra
Launch of CDC Urdu Website
CDC Element Training Program 2016
Discretionary / Non-Discretionary Portfolios under CDC Trustee and Custodial Services hit the 100 mark
CDC will continue to serve as the ACG Secretariat for the same term
n December 2016, 34 members of the Asia-Pacific Central Securities Depository Group (ACG) reiterated their confidence in the leadership of Mr. Muhammad Hanif Jakhura, CEO- Central Depository Company (CDC) and re-elected him as the Chairman of the Executive Committee of ACG for another term of 2017-2019. Mr. Jakhura, was re-elected after
defeating Mr. Nageswara Rao, Managing Director – National Securities Depository Limited, India, during the 20th Annual General Meeting of ACG held in Tehran, Iran. ACG is an informal association of CSDs and clearing houses of the Asia-Pacific region. The primary aim of this body is to promote cooperation and understanding between its members in order to enhance cross-border knowledge sharing.
Mr. Jakhura served as the EC ACG Chairman for 2014-16 and by virtue of this, CDC Pakistan was acting as the ACG Secretariat. This term concluded in November 2016,
however majority of the Executive Committee Members of ACG were of the view that Mr. Jakhura should continue to lead ACG, as under his leadership the association has transformed into a vibrant body and has become the true voice of Asian Depositories on the global front. Majority of the members of the general body of ACG were also of the view that CDC Pakistan served remarkably as the Secretariat and its contribution should continue for the next tenure.
Regional Leadership Role for CEO-CDC
Mr. Muhammad Hanif Jakhura, CEO-CDC re-elected as ACG Executive Committee Chairman for 2017-2019
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CCDC participates in 20th ACG AGM and Conference in Tehran, Iran
DC believes in knowledge sharing and values participation in collaborative efforts for development of the Capital Market, both on regional and global levels. One such platform on which CDC represents Pakistan is the Asia-Pacific Central Securities Depository Group (ACG). The 20th Annual ACG General Meeting and Conference this year was hosted by the Central Securities Depository of Iran (CSDI) in December 2016 in Tehran, Iran. As the secretariat of ACG (2014-2016), CDC was responsible for leading the central coordination for the event.
ACG organizes two annual events, and the Annual General Meeting and Conference is one of them. It consists of two parts, the Conference which includes public sessions and discussions, and the General Meeting which is a member only session held for the purpose of decision making regarding key issues linked with ACG. This year the conference was held from December 5 to 9, 2016 on the theme ‘Need of Further Collaboration of CSDs in the Evolving Business Environment’, and was attended by 90 participants from 21 ACG member countries. This meeting also marked two decades of the association’s journey in providing opportunities for mutual growth to the CSDs of the region. Mr. Muhammad Hanif Jakhura, CEO-CDC, addressed the conference as the Chairman of the Executive Committee of ACG and appreciated the efforts of the association members for choosing a pertinent theme to
make the most of the opportunity. He also reflected upon ACG’s role in promoting technological reforms and cross-border collaborations in the CSD industry of the region. Syed Asif Shah, CIO-CDC shared his insights in the panel discussion on “How innovative and effective systems in CSDs help accelerating developements of the Capital Market”
The most significant initiative taken at this year’s AGM was the launch of the Chief Information Securities Officers (CISO) Forum by the ACG Technical Task Force. The core purpose of this forum is to gather unique insights concerning the cyber-crime threat relevant to Central Securities Depositories and Securities Settlement System.
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entral Depository Company has always strived to enhance the understanding of our valued clients regarding the rules, regulations and procedures governing the operations of CDC. In September 2016, CDC conducted its flagship Element Training Program for the ninth cycle. During the program, CDS participants were enlightened about the developments as well as the common procedures and regulations to be followed in
respect of CDS operations. The training was held in Karachi, Lahore and Islamabad from September 19 to 30, 2016. Like previous years, the training program focused on CDS Elements including Participants, Issuers, R/TAs and Pledgees.
The program helps CDS elements refresh their understanding about the roles and responsibilities that result from their association with CDS. This
forum also provides an opportunity to CDS Elements to ask questions and share concerns directly with CDC personnel. The training was jointly conducted by Operations and Customer Support Services, Legal, Compliance & Risk and Internal Audit Departments and was organized by Product Development and Marketing Department.
CDC Element Training Program 2016C
The sessions involved a comprehensive discussion on procedures and updates with regards to CDS operations based on the following areas. 1. Induction of securities in CDS2. Transactions w.r.t Issuer / R/TA3. Corporate Actions
4. Documentation Requirements for Subscription5. Letter of Right / Right Issue6. Maintenance of Issuer Account 7. Security Issues8. Regulatory Compliances9. Regulatory Actions 10. CDS Element Structure11. Eligible Pledgee12. Pledge Transactions in CDS
13. Compliance in respect of Pledging of Securities14. Maintenance of Eligible Pledgee Account15. General Suggestions
Major talking points
• Mr. Abdul Basit Kothari, Senior Manager - Operations & Customer Support Services
• Mr. Owais Anwar, Manager - Operations & Customer Support Services
• Mr. Azam Fawad, Deputy Manager - Operations & Customer Support Services
• Mr. Muhammad Tariq Siddiqui, Deputy Manager - Operations & Customer Support Services
• Mr. Muhammad Asif Seja,
Assistant Manager - Operations & Customer Support Services
• Mr. Wamiq Ahmed, Manager – Legal, Compliance & Risk
• Mr. Mustafa Farooq, Manager – Legal, Compliance & Risk
• Mr. Asif Javed, Assistant Manager – Legal, Compliance & Risk
• Mr. Mirza Zaffar Hussain, Deputy Manager – Islamabad Branch
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Event ManagementElement Training Program 2016, like all its previous sessions, was organized by CDC’s Marketing Team with support from the Administration Department. Pre-Event Preparations, Training Material, Giveaways, Refreshments, Workshop Arrangements and other post event actions were led by Mr. Muhammad Taha Tungekar, Deputy Manager Marketing at CDC.
Training PanelSenior staff members enlightened the attendees with the necessary knowledge regarding legal, technical and operational matters. The panelists and experts from CDC included:
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Asma SultanaSamba Bank Limited
The training was very informative and useful. More
such trainings should be held as it
helps us develop our skills.
TestimonialsThe success of any event can be gauged by the feedback of the audience. This is what the trainees had to say:
The ETP 2016 proved to be a tremendous success yet again owing to the active support and participation of the CDS Elements.
The program proved to be highly beneficial in disseminating important information and served as a platform for recording the concerns and suggestions of the attendees.
890PARTICIPANTS
ATTENDED
KARACHI
Issuers
216
Pledgees
35
Participants
303
LAHORE
Issuers
85
Participants & Pledgees
145
ISLAMABAD
Issuers
44
Participants & Pledgees
62
Numbers GameHow does one judge the success of an event like ETP? Numbers don’t tell the complete story but they can provide strong evidence alongside qualitative inputs.
13SESSIONS CONDUCTED IN
CITIES OF PAKISTANMAJOR
OVER A SPAN OF
WEEKS
Such workshopsare a reflection of CDC’s dedication towards providing proper guidance to
CDS users. I am extremely thankful
to CDC for conducting it.
Ali M. UsmaniHafiz Limited
n 2000, the mutual fund industry started flourishing in the Pakistani Capital Market and provided a new concept and investment arena to retail and individual investors who possess inadequate knowledge of the capital market but are interested in utilizing its benefits.
CDC, realizing the importance and service demands of this sector, started Trustee & Custodial Services in 2002, initially with two open-ended mutual funds having net asset value of Rs. 500 million. In a short span of time, CDC’s Trustee & Custodial Services, by keeping itself abreast with developments in the mutual fund industry operation, has achieved tremendous growth. The Company, through its proactive approach and high standards of service, has obtained the leading position in this service sector and is currently providing Trustee & Custodial Services to 167 Mutual Funds including 17 Pension Funds being managed by various Asset Management Companies (AMCs) / Pension Fund Managers (PFMs) with an aggregate Fund size of approximately Rs. 702 billion. As Trustee and Custodian, CDC’s role is to take into custody all the assets of the Collective Investment Schemes/Pension Funds, hold them in trust on behalf of the unit/certificate holders and carry out instructions of AMCs/PFMs in respect of the investment portfolio. Throughout the process, CDC
ensures regulatory compliances, protecting unit holders’ interests and maintaining confidentiality and resilience. In 2010, to provide for the inherent need of the growing Capital Market, CDC took another step and introduced Custody Service for Discretionary and non-Discretionary Portfolios (Portfolio Clients) under the umbrella of its Trustee & Custodial Services. In general, Portfolio Clients (including provident / gratuity funds) enjoy greater freedom and convenience through tailor made investment strategies based on specific objectives and preferences. For the purpose, clients with inadequate knowledge have direct access to research based expert guidance and customized solutions such as risk profiling, asset allocation advice and investment strategy review, provided by the Investment Advisor. Under this arrangement, Portfolio Clients prefer to appoint CDC as their independent Custodian to ensure transparency and safekeeping of their securities. Our commitment to the Custody Service is demonstrated by our continuous investment in human resource and technology to provide Portfolio Clients with swift and efficient services. The strength of our Custody Service lies in:
* Settlement of investments on the advice of investment advisor* Safekeeping of securities
* Reporting to clients depicting the picture of investor’s portfolio * Cash management and treasury functions.
Together, these strengths enable us to give our Portfolio Clients an unsurpassed level of support and service. The opportunity also gave us recognition in the local market under the new role of Custodian.
In the past six months our custodian business comprising of Portfolio Clients made another history and saw the number of portfolios hit the 100 mark, with net assets worth of Rs. 24.91 billion. CDC’s major Portfolio Clients include employee benefit funds (gratuity and provident funds), high net worth individuals and separately managed corporate portfolios in the following fragmentation.
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Discretionary / Non-Discretionary Portfolios under CDC Trustee and Custodial Services hit the 100 mark
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24
21
110
Provident Fund
Gratuity Fund
Individuals
Other
Total Clients
No. ofClientsDescription
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Foreign Delegations visit CDC
delegation from The British Deputy High Commission in Karachi visited CDC House on September 21, 2016. The delegation was headed by Her Excellency Belinda Lewis, Deputy High Commissioner. Several senior level members of the corporate community also attended the event along with representatives from various UK-Based entities.
delegation from CFA Institute visited CDC House in November, 2016. The delegation, welcomed by Mr. Muhammad Hanif Jakhura, CEO-CDC and Mr. Ashraf Bava, President-CFA Society, Pakistan, included Mr. Kamil Attila Köksal, CFA, Member Board of Governors, CFA Institute and Dr. Tony Tan Boon Leng, CFA, Head, Standards and Advocacy Division, Asia Pacific Region. Other dignitaries including Mr. Phillipe Crezoisier, Consul General, Switzerland also attended the event.
delegation from The Australian High Commission in Islamabad visited the head office of the Central Depository Company of Pakistan Limited in Karachi in November, 2016. The delegation was headed by Her Excellency Margaret Adamson, Australian High Commissioner to Pakistan. Other dignitaries included Mr. Saeed Ahmed, Deputy Governor, State Bank of Pakistan and several senior level members of the corporate community including Mr. Nauman K. Dar, President & CEO, Habib Bank Limited. Senior representatives of Pakistan Capital Market were also present.
Australian HighCommissionervisits CDC
CFA InstituteDelegation visitsCDC
UK Deputy HighCommissionervisits CDC
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Financial Literacy Workshops in Karachiand Lahore
RIBA-Free Investment Through Modaraba DC 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 a large number of participants from different backgrounds and 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.
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DC recently signed a Memorandum of Understanding (MoU) with Central Depository Systems (Pvt.) Limited (CDS), its Sri Lankan counterpart.
The MoU signing marks another addition to CDC’s long list of foreign partnerships with members of the global securities services industry. CDC has signed MoUs with its international counterparts from across the globe and its most recent signing with CDS Sri Lanka continues its heritage of global partnerships. The MoU will formalize the relationship between the two entities by accommodating the sharing of knowledge and cooperation for the purpose of mutual benefit. Currently both
entities are members of the Asia-Pacific Central Securities Depository Group (ACG).
The signing ceremony took place during the celebration of CDS Sri Lanka’s 25th anniversary and was presided by Mr. Muhammad Hanif Jakhura, CEO – CDC and Mr. Vajira Kulatilaka, Chairman – CDS Sri Lanka. Mr. Jakhura commented upon the MoU by stating that CDC hopes to not only share its success with CDS but also seeks to broaden its own horizons through knowledge-sharing. Mr. Jakhura was invited as the Guest of Honour at the event in his capacity as the Executive Committee Chairman of ACG.
GLOBAL BUZZCDC signs MoU with CDS Sri Lanka
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Launch of CDC Urdu Website n accordance with the Securities and Exchange Commission of Pakistan (SECP) directive, CDC developed and launched an Urdu version of its website in the month of September.
The move has been implemented to cater to the vast portion of the country’s investor base and will serve to make CDC’s website more accessible and user-friendly.
Health Register added to CISSII n extension has been made in the first phase of Centralized Information Sharing Solution for Insurance Industry (CISSII) with the addition of Health Insurance Claims Experience Register. The information sharing of health insurance claims is aimed at facilitating the pricing and underwriting functions of the life and non-life insurers while reducing the risks of anti-selection and fraudulent claims. This addition will encourage organized development of the insurance market in Pakistan and help maintain minimum service standards. It will also bring non-life insurance companies within the ambit of CISSII.
SECP has issued a formal directive requiring all life and non-life
insurers/family takaful operators engaged in underwriting the group health insurance/takaful business to start sharing information regarding group health claims experience from November 01, 2016 onwards. 18 Life and non-life insurers/takaful operators have already signed MoU with CDC in this regard. Participants have started sharing information after formal signing of agreement.
CISSII was launched by CDC in April 2014 as a central database through which all stakeholders of the insurance industry can access pertinent information, greatly reducing the risks associated with management of filed claims. The life insurers are already sharing information in respect of Agents (the codified misconduct), Adverse Information in respect of declined/postponed Life Risks, Individual Claims experience, and Group Life Insurance Claims experience. Earlier, the SECP issued a directive requiring all life insurers to be part of this information sharing mechanism.
The launch of CISSII is the first phase in the implementation of an Insurance Repository, moving towards complete dematerialization of insurance policies and maintenance of historical records which will ensure a high level of transparency and efficiency in the insurance industry.
CDC hosts dinnerin honour of Mr. Mushtaq Chhapra DC hosted a dinner in the honour of Mr. Mushtaq Chhapra, Chairman – The Citizens Foundation (TCF) on September 8, 2016. Mr. Chhapra has recently been conferred the prestigious civil award, ‘Sitara-e-Imtiaz’, for his services and
contribution towards education and social welfare. This dinner was held in celebration of this monumental honour.
The dinner was attended by several leading members of the corporate
world along with people from the social sector. Mr. Chhapra was presented a shield in honour of his services by Mr. Muhammad Hanif Jakhura, CEO – CDC.
In its two decade history, TCF has been providing access to education to the scores of underprivileged youth in the country. TCF now boasts of over 1200 schools spanning the entire country with 175,000 students enrolled. The success of TCF is a testament to the leadership and vision of Mr. Chhapra. Through donations collected from the entire globe, TCF builds and manages purpose-built campuses in the underprivileged parts of the country. These campuses maintain excellent educational standards and provide subsidized education along with support for books, stationery, uniforms etc.
CDC has had a long history of collaborations with TCF. Through its CSR initiatives, CDC has continually partnered with TCF on a number of endeavours. Not only does CDC support TCF through donations but has also solely sponsored the construction of a school in Tapo Azeem Shah, Mirpur Khas.Additionally, CDC employees have also volunteered for TCF Rahbar Mentorship program.
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ITMinds Limited offers BPO Services forAccounting of Retirement Benefit Schemes
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lfalah GHP Investment Management Limited (Alfalah GHP) recently outsourced the back office accounting function of its to-be launched voluntary pension funds to ITMinds Limited. ITMinds has signed an agreement with Alfalah GHP to provide the
entire package of back office services for fund administration under ITMinds’ BPO Services. The package includes settlement, unit management, registrar, accounting and reporting functions. This outsourcing arrangement will allow Alfalah GHP to focus on its core business, and consequently enable it to achieve long term profitability,
reduced back office cost and improved efficiency through efficient and transparent processes.
TMinds Limited introduced Business Process Outsourcing (BPO) services for the accounting needs of employee retirement benefits schemes which include provident, pension and gratuity funds. The service is a complete solution to handle the entire spectrum of activities related to an organization’s staff retirement benefits and provides:
• Comprehensive information under one terminal.• Enriched MIS reports for better decision making.• Customization for individual business needs .• Provision of consolidated employee member register for both employee & employer contribution.
• Loan & withdrawal management.• State of the art ERP developed & upgraded in-house.• Cash flow projections for fund solvency & contribution rates.• Financial Statements & periodic reports as per applicable standards.• End user web portal access.
ITMinds’ outsourcing service provides agile, efficient, cost effective and pertinent solutions that cater to the unique business needs of its clientele.
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Alfalah GHP Outsources Back Office Functions of Voluntary Pension Funds to ITMinds Limited
Upgrading Windows XP Operating System to Windows 7 SP1 or greater on CDS Terminals
[Circular: July 14, 2016]
Clients were informed that Microsoft officially ceased supporting Windows XP Operating System back in 2014 and has recommended to upgrade to newer Operating Systems like Windows 7 SP1 or beyond. Therefore, continuing with Windows XP, being an un-supported and vulnerable operating system can cause security issues like hacking and loss of information etc.
Furthermore, CDC is in process of upgrading its firewalls to keep abreast with latest technology and to improve its information security. The new firewall does not support Windows XP operating system and will restrict those clients who are still using Windows XP based terminals to connect VPN.
Therefore, the clients having Windows XP were requested to upgrade the operating systems of their terminals by 31 August, 2016. After this date, CDC does not stand responsible to extend its services or support to Windows XP based clients.
Account Title Synchronization with UIN Title
[Circular: August 11, 2016]
In line with the efforts towards achieving Straight-through Processing (STP) in the Capital
Market operations, CDC recently developed functionality in Central Depository System (CDS) namely “Account Title Synchronization with UIN Title”.
After promotion of this functionality, Participants are no longer required to enter Account Title and Joint Account Holder(s) name manually at the time of opening of new sub account. Upon entering of UIN in the designated field of CDS for the purpose of account opening, title is automatically populated in the designated field as mentioned in the UIN database.
Further, Account Title and Joint holder(s) name are not allowed to be amended once inserted in the posted account. For matching the account title of existing sub accounts, Participants are no longer required to furnish a request letter to CDC and instead they can now press the newly added “Synchronize A/c Title” button (in account setup screen) and the system will update the title (account and joint holder) as per title(s) mentioned in the UIN database. However, Participants shall not use “Synchronize Account Title” button for Trustee, Minor and Manager to offer accounts.
Moreover, at the time of new account opening, in case where the account title is different from the UIN database (for e.g. Trustee accounts, account of the Minors, Manager to the offer etc. needs to be added in account title), a request letter for by-pass will be required from the Participant, signed by their authorized signatories along with the certified true copies of the relevant supporting documents, enabling them to have the authority to insert
the title other than the title mentioned in the UIN database.
Above functionality has been made effective from Monday, August 15, 2016. The Procedure for Opening & Updating Sub-Accounts in CDS is also available on CDC’s corporate website www.cdcpakistan.com.
Regularization of Sub-Account UINs
[Circular: November 17, 2016]
With an objective to achieve transparency in the market mechanisms, CDC informed its Participants regarding regularization of Sub-Accounts with respect to expiry of CNICs via circular dated June 29, 2016. Subsequently, CDC developed a new report by the title of “UIN Expiry Report” through which Participants can download the details of all accounts with expired UINs and UIN close to expiry, irrespective of UIN type and whether it belongs to Principal or Joint holder(s). The same was also communicated via circular dated October 18, 2016. Additionally, they were informed that CDC had initiated a one-time activity whereby CDC had requested National Database & Regulatory Authority (NADRA) for updated expiry dates of the CNICs / NICOPs of Sub-Account holders. Through this activity, a major portion of the said expiry data will be made available in CDS which would in turn facilitate the Participants to regularize the expired CNICs / NICOPs records under their Participant umbrella.
It is important to mention here that the expiry date of other UINs, such as
CDS Updates
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Notice BoardLimit on Assets under Custody (AuC) Regime – 2016 for TREC Holders with Financial Year End June 30, 2016[Circular: July 21, 2016]
The AuC regime was introduced last year in order to apply a mechanism whereby prescribing a limit to the extent of which a Trading Right Entitlement Certificate (TREC) Holder Participant may have custody of securities under its control. The regime was successfully implemented last year and will continue to be applicable on all TREC holders.
In this respect, there had been a few amendments in the Procedures of AuC, duly approved by SECP in order to bring more transparency and efficiency to the Regime. The material highlights of the changes made are mentioned below: • The minimum requirement of auditors has been changed from [auditors having satisfactory QCR rating from the ICAP] to [Category “A” or “B” of the SBP’s Panel of Auditors] in order to bring the criteria in line with the criteria laid out by PSX. • It has been made mandatory to mention the number of PSX shares held by the Participant in the corresponding notes to the accounts.
• Changes have been made in the format of Auditor’s Certificate in order to bring in more clarity.
Furthermore, in accordance with the CDCPL Regulations and Procedures,
all TREC holders were required to submit to CDC, the certified true copy of Audited Financial Statements or Original Auditor’s Certificate as at June 30, 2016 as per prescribed format attached with the Procedures, latest by November 04, 2016.
Revision in Schedule of Fees and Deposits[Circular: July 28, 2016]
CDC rationalized its tariff structure as approved by the Securities and Exchange Commission of Pakistan which came into force with effect from July 01, 2016.
For details, please visit CDC’s corporate website www.cdcpakistan.com.
Securities and Exchange Commission of Pakistan’s Official Twitter Account[Circular: September 20, 2016]
The apex regulator of capital markets, non-banking companies and corporate sector, the Securities and Exchange Commission of Pakistan (SECP) also started using “Twitter” for dissemination of information to public at large, in addition to dissemination of information to regulates, investors. The SECP official twitter account @SECPPakistan is primarily for information regarding developments in various laws, rules, and regulations, issuance of new directives and notifications and other initiatives taken by SECP. Followers of twitter account will receive all updates accordingly.
passport etc. had not been undertaken in this one time activity as these documents do not come under the scope of NADRA. Therefore, Participants were required to arrange for regularization of such data at their end along with those CNIC / NICOP that still appear expired after the initial above mentioned activity. This measure by CDC will help reduce the regularization burden of the Participants greatly and would expedite the due compliance.
Facility of e-Alerts and SMS-alerts for expiry date of UIN
[Circular: December 21, 2016]
To further facilitate the Participants and Investors, and to ensure accuracy of the account details with respect to validation of UINs (such as CNIC, NICOP, Passport & POC etc.), CDC enhanced its facility of e-Alerts and SMS-alerts in CDS to intimate the clients regarding expiry and near to expiry of the UINs mentioned in their respective accounts. Through this facility, Investors are being intimated at the following two events:
• One month prior to the UIN expiry date in CDS.
• On the date of UIN expiry. After introduction of this facility, now the Investors are also being intimated in addition to the Participants who were already being provided with the relevant reports as communicated via circular dated November 22, 2016. This measure undertaken by CDC will strengthen the compliance mechanism of the expiry date validation in CDS.
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STATISTICAL HIGHLIGHTS CENTRAL DEPOSITORY SYSTEM (CDS)
TYPE OF ELEMENTS
BREAKUP OF SECURITIES
AS ON DECEMBER 31, 2016
Open End Units
37
Ordinary Shares
680
Preference Shares
18
TFCs / Sukkuk
93
Participants / Account Holders
597Pledgees
95
Issuers
710
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SECURITIES INDUCTED INTO CDS S. No. Security Name Security Type Live Date
1 Jahangir Siddiqui & Company Limited - TFC 4th Issue Debt Instruments 01 Jul, 2016
2 Philip Morris (Pakistan) Limited-Nv,Non Cum&Con Class-A Pref.Sh Preference Shares 01 Jul, 2016
3 GlaxoSmithKline Consumer Healthcare Pakistan Limited Ordinary Shares 01 Jul, 2016
4 Din Farm Products (Pvt.) Limited. Ordinary Shares 26 Jul, 2016
5 Sindh Microfinance Bank Limited Ordinary Shares 03 Aug, 2016
6 Universal Packaging Company (Pvt.) Limited Ordinary Shares 04 Aug, 2016
7 Din Leather (Pvt.) Limited Ordinary Shares 11 Aug, 2016
8 Adil Textile Mills Limited Ordinary Shares 17 Aug, 2016
9 Neelum Jhelum Hydropower Co. (Pvt.) Limited. - Sukuk Certificates Debt Instruments 24 Aug, 2016
10 NRSP Microfinance Bank Limited – TFC Debt Instruments 16 Sep, 2016
11 Pak Elektron Limited - Sukuk Certificates (3rd Issue) Debt Instruments 23 Sep, 2016
12 Fatima Enterprises Limited Ordinary Shares 23 Sep, 2016
13 Din Energy Limited Ordinary Shares 28 Sep, 2016
14 Daewoo Pakistan Express Bus Service Limited Ordinary Shares 30 Sep, 2016
15 SB Global REIT Management Company Limited Ordinary Shares 14 Oct, 2016
16 Thalnova Power Thar (Pvt.) Limited Ordinary Shares 14 Oct, 2016
19 Macter International Limited Ordinary Shares 23 Dec, 2016
17 Cirin Pharmaceuticals (Pvt.) Limited Ordinary Shares 22 Nov, 2016
18 Meezan Bank Limited - Tier II Modaraba Sukuk Certificates Debt Instruments 01 Dec, 2016
SECURITIES DELISTED FROM CDS
8 Power Holding (Pvt.) Limited - TFC (5th Issue) Debt Instruments 03 Oct, 2016
13 Burj Bank Limited Ordinary Shares 29 Dec, 2016
12 Crosby Phoenix Fund 19 Dec, 2016
11 Kohat Cement Company Limited - Sukuk Certificates Debt Instruments 13 Dec, 2016
10 Pakistan Mobile Communications Limited -TFC 5th Issue (18-04-12) Debt Instruments 30 Nov, 2016
9 Pakcem Limited Ordinary Shares 25 Oct, 2016
S. No. Security Name Security Type Delist Date
1 First Dawood Mutual Fund Close End Fund 01 Jul, 2016
2 Bank Alfalah Limited-TFC (23-11-04) Debt Instruments 01 Jul, 2016
3 Bank Alfalah Limited-TFC (25-11-05) Debt Instruments 01 Jul, 2016
4 Pak Elektron Limited - Commercial Papers Debt Instruments 08 Aug, 2016
5 Bank Al Habib Limited (TFC - 2011) Debt Instruments 10 Aug, 2016
6 House Building Finance Company Limited.-Sukuk Certificates Debt Instruments 23 Aug, 2016
7 Pak-Libya Holding Company (Pvt.) Limited-TFC (3rd Issue) Debt Instruments 09 Sep, 2016
Open-endMutual Funds
SLATE
CREDIT OF SHARES / CERTIFICATE AGAINST RIGHT ISSUE / FURTHER ISSUE S. No. Security Name To Effective Date
1 Tenaga Generasi Limited Right Issue 15 Jul, 2016
2 Askari General Insurance Company Limited Right Issue 26 Jul, 2016
3 Allied Engineering Management Co. (Pvt.) Limited Right Issue 29 Jul, 2016
4 Advans Pakistan Microfinance Bank Limited Right Issue 10 Aug, 2016
5 Sindh Bank Limited Right Issue 01 Sep, 2016
6 Ghani Global Glass Limited Right Issue 20 Sep, 2016
7 Nimir Resins Limited Right Issue 14 Oct, 2016
8 TPL Life Insurance Limited Right Issue 26 Oct, 2016
9 Treet Corporation Limited Further Issue 01 Nov, 2016
10 Tenaga Generasi Limited Right Issue 16 Nov, 2016
11 Fauji Fresh N Freeze Limited Right Issue 18 Nov, 2016
12 Global Arts Limited Right Issue 22 Nov, 2016
13 Further Issue 06 Dec, 2016
CREDIT OF NEW ISSUES/OFFER FOR SALECORPORATE ACTIONS
S. No. Security Name Issue Type Security Type Apply Date
1
2
3
4
5
6
7
Meezan Bank Limited - Tier II Modaraba Sukuk Certificates
21 Oct, 2016
29 Nov, 2016
01 Dec, 2016
9
10
11
Loads Limited 19 Dec, 201612
Philip Morris (Pakistan) Limited-Nv,Non Cum&ConClass-A Pref.Sh
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16
Amreli Steels Limited
Sindh Microfinance Bank Limited
Philip Morris (Pakistan) Limited-Nv,Non Cum&ConClass-A Pref.Sh
Neelum Jhelum Hydropower Company Limited - Sukuk Certificates
NRSP Microfinance Bank Limited - TFC
NRSP Microfinance Bank Limited - TFCAmreli Steels Limited
Loads Limited
Loads Limited
Amreli Steels Limited
New Issue (5th Tranche)
New Issue
New Issue
New Issue
New IssueNew Issue
New Issue
New Issue
New Issue
New Issue (2nd Tranche)
New Issue (Book Building Portion)
New Issue (GeneralPublic Portion)
8
Ordinary Shares
Ordinary Shares
Ordinary Shares
Ordinary Shares
Ordinary Shares
Ordinary Shares
Ordinary Shares
Preference Shares
Debt Instruments
Debt Instruments
Debt Instruments
Debt Instruments
18 Oct, 2016
14 Oct, 201620 Sep, 2016
15 Sep, 2016
23 Aug, 2016
03 Aug, 2016
02 Aug, 2016
13 Jul, 2016
CREDIT OF SHARES / CERTIFICATE AGAINST RIGHT ISSUE / FURTHER ISSUE S. No. Security Name To Effective Date
14 Treet Corporation Limited Further Issue (ESOS) 09 Dec, 2016
15 Dost Steels Limited Right Issue 19 Dec, 2016
16 Dost Steels Limited
17 Dubai Islamic Bank Pakistan Limited Right Issue 27 Dec, 2016
18 TPL Life Insurance Limited Right Issue 30 Dec, 2016
22 Dec, 2016(2nd Tranche)Right Issue
CREDIT OF UNPAID RIGHTS S. No. Security Name Apply Date
1 Ghani Global Glass Limited 14 Jul, 2016
2 Allied Engineering Management Co. (Pvt.) Limited - LOR 14 Jul, 2016
3 Nimir Resins Limited - LoR 01 Aug, 2016
4 Sindh Bank Limited - LoR 19 Aug, 2016
5 Tenaga Generasi Limited 29 Aug, 2016
6 CDC Trustee Company Limited – LoR 07 Oct, 2016
7 Dost Steels Limited 10 Oct, 2016
8 TPL Life Insurance Limited – LoR 20 Oct, 2016
9 Fauji Fresh n Freeze Limited - LoR (4th Issue) 31 Oct, 2016
10 International Knitwear Limited 31 Oct, 2016
11 Global Arts Limited - LoR 02 Nov, 2016
12 East West Assurance Company Limited 09 Nov, 2016
13 J.K. Spinning Mills Limited - LoR 28 Nov, 2016
14 Next Capital Limited 06 Dec, 2016
15 Masood Textile Mills Limited 13 Dec, 2016
16 TPL Life Insurance Limited 15 Dec, 2016
17 Dubai Islamic Bank Pakistan Limited 16 Dec, 2016
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DETAIL OF PARTIAL CONVERSION AND CANCELLATION S. No. Security Name Apply Date
1 Aisha Steel Mills Limited 28 Jul, 2016
2 Aisha Steel Mills Limited - Preference Shares 28 Jul, 2016
3 Masood Textile Mills Limited - Cumulative. Preference Shares 04 Aug, 2016
4 Aisha Steel Mills Limited 30 Aug, 2016
5 Aisha Steel Mills Limited - Cumulative. Preference Shares 30 Aug, 2016
6 Aisha Steel Mills Limited 02 Sep, 2016
7 Aisha Steel Mills Limited - Preference Shares 02 Sep, 2016
8 Aisha Steel Mills Limited 08 Sep, 2016
9 Aisha Steel Mills Limited - Cumulative. Preference Shares 08 Sep, 2016
14 Aisha Steel Mills Limited 18 Oct, 2016
15 Aisha Steel Mills Limited - Conv. Cumulative Preference Shares 18 Oct, 2016
16 Aisha Steel Mills Limited 20 Oct, 2016
17 Aisha Steel Mills Limited - Conv. Cumulative Preference Shares 20 Oct, 2016
18 Aisha Steel Mills Limited 11 Nov, 2016
19 Aisha Steel Mills Limited - Preference Shares 11 Nov, 2016
10 Aisha Steel Mills Limited 05 Oct, 2016
11 Aisha Steel Mills Limited - Conv. Cumulative Preference Shares 05 Oct, 2016
12 Aisha Steel Mills Limited 13 Oct, 2016
13 Aisha Steel Mills Limited - Conv. Cumulative Preference Shares 13 Oct, 2016
CREDIT OF BONUS ISSUE S.No. Security Name % Of Bonus Declared Apply Date
1 IGI Life Insurance Limited 95% Bonus Shares 15 Jul, 2016
2 EFU General Insurance Limited Remaining 5% Bonus Shares 15 Jul, 2016
3 IGI Life Insurance Limited Remaining 5% Bonus Shares 27 Jul, 2016
4 The United Insurance Company of Pakistan Limited Remaining 5% Bonus Shares 19 Aug, 2016
5 International Brands Limited 95% Bonus Shares 19 Aug, 2016
6 Central Depository Company of Pakistan Limited 95% Bonus Shares 17 Oct, 2016
7 Central Depository Company of Pakistan Limited Remaining 5% Bonus Shares 28 Oct, 2016
8 Ecopack Limited 95% Bonus Shares 14 Nov, 2016
9 Suraj Cotton Mills Limited 95% Bonus Shares 16 Nov, 2016
10 United Distributors Pakistan Limited 95% Bonus Shares 17 Nov, 2016
11 Al Shaheer Corporation Limited 95% Bonus Shares 18 Nov, 2016
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CUSTODIAN
19
CREDIT OF BONUS ISSUE S.No. Security Name % Of Bonus Declared Apply Date
12 Zahidjee Textile Mills Limited 95% Bonus Shares 24 Nov, 2016
13 The Searl Company Limited 95% Bonus Shares 23 Nov, 2016
14 IBL Healthcare Limited 95% Bonus Shares 24 Nov, 2016
15 Suraj Cotton Mills Limited Remaining 5% Bonus Shares 30 Nov, 2016
17 IGI Life Insurance Limited 95% Bonus Shares 07 Dec, 2016
18 Zahidjee Textile Mills Limited Remaining 5% Bonus Shares 13 Dec, 2016
19 Asia Insurance Company Limited 95% Bonus Shares 16 Dec, 2016
20 Biafo Industries Limited 95% Bonus Shares 19 Dec, 2016
21 East West Insurance Company Limited 95% Bonus Shares 23 Dec, 2016
22 Al Shaheer Corporation Limited Remaining 5% Bonus Shares 23 Dec, 2016
23 Loads Limited 95% Bonus Shares 27 Dec, 2016
24 IGI Life Insurance Limited Remaining 5% Bonus Shares 29 Dec, 2016
25 Biafo Industries Limited Remaining 5% Bonus Shares 30 Dec, 2016
16 Shezan International Limited 02 Dec, 2016Remaining 5% Bonus Shares(2nd Issue)
DETAIL OF CHANGE OF R/TA (LISTED & UNLISTED)
Technology Trade (Pvt.) Limited.
Rahim Jan Hafizullah Associates (Pvt.) Ltd
THK Associates (Pvt.) Limited. -II
THK Associates (Pvt.) Limited.
THK Associates (Pvt.) Limited.
Noble Computer Services Pvt Limited
Corptec Associates (Pvt.) Limited
F.D. Registrar Services (Smc-Pvt.) Limited
CDC - R/TA Services
CDC - R/TA Services
CDC - R/TA Services
Famco Associates (Pvt.) Limited
20 Jul, 2016
01 Aug, 2016
25 Aug, 2016
30 Aug, 2016
30 Aug, 2016
31 Aug, 2016
First IBL Modaraba
Khyber Textile Mills Limited
Askari Bank Limited
Askari Bank Limited – (PPTFC-V)
Askari Bank Limited – TFC
Agri Auto Stamping Company (Pvt.) Limited
S. No. Security Name From To Effective Date
12345
6
Self
THK Associates (Pvt.) Limited
Noble Computer Services (Pvt.) Limited - III
Technology Trade (Pvt.) Limited
Hameed Majeed Associates (Pvt.) Limited
Hameed Majeed Associates (Pvt.) Limited - KHI
Vision Consulting Limited
Famco Associates (Pvt.) Limited
CDC - R/TA Services
Corplink (Pvt.) Limited
28 Oct, 2016
01 Dec, 2016
09 Dec, 2016
15 Dec, 2016
01 Jan, 2017
First Tri-Star Modaraba
Ghani Gases Limited
Thal Boshoku Pakistan (Pvt.) Limited
BankIslami Pakistan Limited
Service Industries Limited
7891011
SLATE
IND
IVID
UA
L IN
VES
TOR
AC
CO
UN
T
CO
RPO
RA
TE IN
VES
TOR
AC
CO
UN
T
36,2
17
Kar
achi
NO. OF ACCOUNTS 50,533
NO. OF SECURITIES (in Bil) 74.910
1,14
4
8,09
3
Lah
ore
264
4,70
1
Isla
mab
ad11
4
INVESTOR ACCOUNT SERVICES (IAS)
No. of IAS Account 50,533
Activation of IVR/WEB 28,007
Activation of SMS 39,888
AS ON DECEMBER 31, 2016
AS ON DECEMBER 31, 2016ACTIVATIONS (FOR IAS CUSTOMERS)
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SHARES TRADED AT PSX DURING LAST 6 MONTHS
(NO. IN MILLION) (NO. IN MILLION)
July 3,149.673 814.983 7,887,249.563
August 6,109.261 1,016.108 8,011,361.982
September 10,903.845 1,108.167 8,223,528.986
October 8,675.997 1,415.988 8,082,517.414
November 10,952.855 1,673.072 8,696,513.741
December 7,836.421 1,239.110 9,628,514.372
Source: PSX Quotation
FUTURE CONTRACTREADY MARKET CAPITALIZATIONMONTH CLOSING(RS. IN MILLION)
TURNOVER OF SHARES
AS OF DECEMBER 31, 2016PSX AND CDS SUMMARY
1 Listed Companies at PSX 558
2 Listed Capital at PSX (in Billion) 1291.04
3 Number of shares in CDS (in Billion) 129.85
4 Units of Open-End funds in CDS (in Million) 133.76
5 Units of TFCs, Sukuks and Bonds in CDS (in Million) 82.29
6 Market Capitalization in PSX (in Billion) 9,628.514
7 Market Capitalization of shares in CDS (in Billion) 6,202.37
8 Percentage of shares in CDS w.r.t. Share Capital * 87.93%*Excluding GoP holding
WORLD MARKET INDICESIndex Value as on DEC 30, 2016
BSE SENSEX 26,626.46
S&P/ TSX Composite 15,287.59
FTSE 100 (London) 7,142.83
NIKKEI 225 (Tokyo) 19,114.37
DAX (Frankfurt) 11,481.06
CAC 40 (Paris) 4,862.31
ALL ORDINARIES 5,719.10
HANG SENG (Hong Kong) 22000.56Source: Google Finance
60,000
50,000
40,000
30,000
20,000
10,000
PSX 100 INDEX DURING THE LAST 6 MONTHS
July August September October November December
39,529 39,809 40,54242,622
39,894
47,807
PSX 100 index duringlast 6 months
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SLATE
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SPI7
12
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10
18
)
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08
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167
702
24.91
52
13
24
21
110
( )
06
THE
CUSTODIANSLATE
216 35303
85 145
44 62
890
13
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04
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02
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010203
08
11
09
1213
07
10
06
65 6466
66
