KARACHI, Oct 1: The Central Depository Company of Pakistan Limited (CDC) has experienced exceptional growth in the financial year 2003-2004 as the company declared Rs231.4 million profit after-tax as against Rs72.9 million last year, an increase of 217pc.

These results were announced by the CDC. Chief Executive Officer, Mr Hanif Jhakura. The newly inducted Chairman of CDC, Mr Bashir Janmohammed was also present on the occasion along with some other directors of the company, says a press release.

He said this phenomenal growth can be attributed to various factors including, increased market activity due to stable macroeconomic situation, increase in market capitalization of securities, privatization of government owned institutions pro-active approach of the company to induct securities into the Central Depository System (CDS) and introduction of new facilities/services by the company.

The infrastructure provided by the company to facilitate working of the capital market is paying out in a big way as in addition to introducing transparency and efficiency to the market, it has also improved the working for all concerned.

The privatization drive initiated by the government in addition to other IPOs this year has stimulated and rejuvenated the market as approx 767 million shares of OGDCL, Sui Southern, Abamco Composite Fund, Bank Alfalah, Pakistan Strategic Allocation Fund and PPL were inducted directly into the Central Depository System during the financial year which clearly shows the interest of investors in the capital market activities as well their confidence on the performance of the Central Depository System.

The company continued its policy of aggressive induction of securities into the CDS to bring all issuers on one platform to create a level-playing field. Significant progress was made on this front as 88 securities (ordinary shares/preferred shares) as well as 18 new TFCs joined the system this financial year.

As a result of the above, the total number of shares in CDS increased to 11.27 billion from 7.86 billion and total number of TFC units increased to 9.42 million from 7.10 million this financial year.

The number has further increased to 12.4 billion and 10.13 million for shares and TFCs respectively as on August 31, 2004. Investors Account Services (IAS) also witnessed tremendous growth as the total number of Investor Accounts increased from 8,793 to 13,483 during the financial year.

The number of Investor Accounts has further increased to 14,836 as on August 31, 2004. Similarly, Trustee and Custody Operations also performed remarkably as four new mutual funds joined the service, taking the tally of funds under this service to eleven.