Central Depository Company (CDC) has advised market participants to open CDC investor accounts by April 30, 2005, for the security of their investment in stock market. According to an announcement by CDC here on Tuesday, the Securities and Exchange Commission of Pakistan (SECP) has prohibited the usage of group accounts from April 30, 2005. The CDC board, which met on Monday, instructed the management to facilitate the market participants to ensure smooth phasing out of group account facility from the stock market.
This measures is aimed to inculcate good governance in business conduct and promote transparency to ensure investors' protection in the securities market, the announcement added.
CDC board of directors has extended the CDC timings for opening of sub account and intra account free delivery up to 7 pm till April 30 to facilitate opening of CDC investors accounts.
The board was informed that CDC has been holding workshops all over the country to educate investors about Investors Account Services (IAS) as an alternative to group accounts.
CDC's IAS allows retail investor to have direct access to CDC and to directly open and maintain accounts in the central depository system (CDS) for electronic settlement of shares.
To attract and facilitate individual participants, the CDC has recently reduced its annual fee from Rs 1500 to Rs 500 per annum.
It may be noted that CDC's IAS now holds more than 5 billion securities worth about Rs 195 billion in over 24,300 investors accounts at Karachi, Lahore and Islamabad.