This is in reference to the corporate news on CDC under the caption "A silent revolution, capitalising on the confidence extended by market" dated 10th October 2005. The progress of CDC in terms of revenue and in the number of investor accounts is certainly a great achievement for the company.
The focus of the CDC is to explore new avenues for more revenue generation instead of providing better service and facilities to its 29000 investor account holders, out of which 98% are individual investors. I have the following suggestions in this regard:
i) The CDC should only charge commission on shares traded and not on shares held inactive/custody.
ii) The CDC should have a small yearly fee for providing custodial services. This will encourage saving and provide individuals to take a long-term view of their investments.
iii) The monthly report must be informative, so as to show shares held, Dividends, Right and Bonus shares received during the period. It should also give the closing dates and Board meetings.
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