A FEW months ago, the Central Depository Company (CDC), on the directives of the Securities and Exchange Commission of Pakistan (SECP), asked its account holders to mandatorily submit their International Bank Account Number (IBAN).

I submitted the correct IBAN to the CDC on time. Shareholders were told by the CDC that this was required so that their dividend could be transferred directly from bank to bank, without realising that many bank branches are not aligned with the ‘one link’ system through which money can be transferred from one to the other.

This resulted in the non-payment of the dividend to a number of shareholders. On inquiry, one of the listed companies stated that they have more than 300 such cases. More such cases will follow and more shareholders will be made to suffer owing to an anomaly in the SECP regulation.

What are the options left? A nonsensical solution being suggested by the CDC and companies concerned is to open a new bank account and look for bank branches that have the ‘one link’ system. How many of us have the technical knowledge to identify the real issue? Opening a new bank account is not a solution for everybody, especially for those living abroad.

The authorities concerned and the SECP should take corrective action; this issue has imposed serious agony and financial burden on me, for this dividend income is a lifeline for my elderly parents in my absence. One suggestion is to revert to the old system for such cases until the anomaly is rectified.

Rehan Anwar

Canada

Published in Dawn, April 23rd, 2018