The Central Depository Company Limited (CDC) has announced reduction in the custody fee charged on shares (equity securities) from 0.035 per annum to 0.030 percent per annum, besides cutting down the security deposit to issuers by another 50 percent. According to an announcement on Wednesday, CDC has lowered security deposits exceeding Rs 100,000 per account from participants /account holders and eligible pledges. The revised tariff structure will come into effect from January 1, 2005.
Giving details of the decision, CDC Chief Executive Officer Hanif Jakhura said that the company had lived up to the expectations of the capital market investors as this 14.28 percent reduction in the custody charges, a further 50 percent cost benefit to the issuers and all other incentives were in line with CDC's policy to provide hassle-free and cost-effective services to its valued clients.
He said that the change in security deposit for issuers had impacted an overall reduction of 87.5 percent ever since CDC began operations.
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