ISLAMABAD: The Central Depository Company (CDC) — with active support of the 1Link (Guarantee) Limited, Securities and Exchange Commission of Pakistan (SECP) and State Bank of Pakistan (SBP) — has introduced the concept of centralised e-IPO system (CES) in order to facilitate the public to apply for subscription of securities offered for sale through initial public offerings (IPOs) by providing an efficient and hassle-free mechanism to them.

Under the newly introduced system, applications for subscriptions of securities can be filed electronically. Investors having valid national identity cards, bank accounts in scheduled banks and CDC accounts can electronically register themselves “24/7 throughout the year”, according to sources.

Only registered investors may apply for subscription of securities through any of the banking channels — ATMs, internet banking, mobile Apps or over the counter.

Furthermore, CDC, with the backing of SBP, is in the process of introducing the e-dividend concept the implementation of which will ensure electronically the transfer of dividend into the investors’ bank accounts.

While the CES will increase the outreach of IPOs, promote the culture of keeping securities in book-entry form and will make the IPO process more user-friendly and efficient, the e-dividend concept will remove the inefficiencies relating to payment of dividend through dividend warrants.

With active support of the SBP, the SECP has instituted various measures to utilise the efficient banking channels to support a more efficient and hassle-free mechanism for the benefit of investors of the capital market, say analysts.

Published in Dawn, May 14th, 2017

Opinion

Editorial

‘Source of terror’
Updated 29 Mar, 2024

‘Source of terror’

It is clear that going after militant groups inside Afghanistan unilaterally presents its own set of difficulties.
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...