KARACHI, Nov 23: The Central Depository Company of Pakistan Limited (CDC), which completed five years of operation on September 3, said that it had managed clientele of over 500 corporate entities and almost 7000 retail investors.

In a newsletter, the CDC stated that besides successfully dematerializing the Pakistani Capital Market, CDC had been engaged in diversification of operations and introduction of futuristic quality services. Moreover, it had been consistent effort of CDC to ensure that those services were cost effective. “Thus, over the years, CDC regularly reduced tariff for both CDS Elements and Investor Account Holders.”

CDC was currently said to be conducting an exercise to re- engineer CDS so as to incorporate better technologies and designs, geared to introduce further ease and expediency for the clients.

Electronic Merger Functionality was introduced in February 2001, which has since been simplified and accelerated the merger process along with introducing cost benefits to both issuers and shareholders. The total number of electronic mergers/de-mergers in CDS stood at 12, including the following two mergers that took place in the quarter ended September 30, 2002: Merger of Security Stock Fund Limited with BSJS Balanced Fund Limited and Merger of Pakistan Industrial Leasing Corporation Limited with Trust Investment Bank Limited.

CDC stated that following approval from the SECP, CDC was offering custodial services to Closed End Mutual Funds under the Investment Advisory Rules, 1971. Currently, CDC was providing physical electronic custody to the following closed-end mutual funds: Safeway Mutual Fund; Dominion Stock Fund; Al-Meezan Mutual Fund; Prudential Stock Fund and Investec Mutual Fund (formerly known as Growth Mutual Fund).

Subsequent to the implementation of the CDS and the electronic system of the three stock exchanges, the final step towards complete automation of the Pakistani Capital Market was the ongoing phased implementation of the National Clearing & Settlement System (NCSS). In addition to the 80 securities inducted earlier, 70 more securities have been inducted on September 25, increasing the number of securities being settled through NCSS to 150, the CDC said.