Central Depository Company of Pakistan Limited was formed under Central Depositories Act 1997 which was passed on June 10, 1997. Subsequently, Central Depository Company of Pakistan Limited Regulations were developed and approved by the Securities and Exchange Commission of Pakistan.
The establishment of a Central Depository System required changes in the legal framework. Before Central Depositories Act 1997, registered owner of securities were recognized as beneficial owner by law. Therefore, all the rights of the security holder (benefits & voting rights etc.) were vested with the registered owner which was not suitable to the depository structure. The Central Depositories Act 1997 made it possible to recognize the beneficial owner of securities on the basis of holdings in depository accounts. In the current depository structure, all securities are registered in the name of Central Depository Company of Pakistan Limited in the capacity of a nominee, the account holders are considered to be the beneficial owners of securities on the basis of their holdings in CDS accounts.
Related Legal Framework:
- Companies Ordinance, 1984
- Zakat & Ushr Ordinance, 1980
- Securities and Exchange Ordinance, 1969
- Non-Banking Finance Companies and Notified Entities Regulations, 2008
- Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003
- Company Registration Number: 0029418
- NTN Number: 0710001-9
Anjum Asim Shahid Rahman
1st & 3rd Floors, Modern Motors House