Account Holder/Participant

Account Holder/Participant

Account Holders are divided into two categories; Account Holders and Participants. Both, Account Holders and Participants have direct access to CDS. Account Holders are allowed to keep their beneficially owned securities in CDS whereas Participants are additionally entitled to open Sub-Accounts in CDS in order to provide custody services to their clients.

Eligibility Criteria

All the Trading Right Entitlement Certificate Holder) [1] of Stock Exchanges, Commercial Banks, Modarabas and Developmental Financial Institutions can become Participant. All entities (both private and public) can be admitted as Account Holder.

Account Opening Procedure

To open Participant/Account Holder Account in CDS, the account opening requirements are provided to the applicant on a request. The Account Opening Documents for Participants/Account Holders are as follows:

Documents to be submitted by Applicant

  • Participant/Account Holder Admission Form: General information about the applicant is obtained on this Form. Participant / Account Holder Admission Form (Individual)Participant / Account Holder Admission Form (Corporate).
  • Signature Card [2]: It contains the name(s) & signature(s) of the authorized signatory (ies) of the Participant/Account Holder (as per Board Resolution). The Signature Card must be in original, bearing the Company Stamp.
  • Participant/Account Holder Agreement [3]: Standard Agreement states the terms and conditions agreed upon by both parties for induction into Central Depository System (CDS).
  • Certified true copy of Broker Registration Certificate by SECP (in case of a Broker).
  • Certified true copy of Trading Right Entitlement Certificate Holder (Membership Certificate [4] (in case of a Broker).
  • Certified true copy of Notification by Stock Exchange (in case of a Broker).
  • Certified true copy of Power of Attorney (in case form is signed by Attorney of the Applicant)
  • Certified true copy of NTN Certificate.
  • Security Deposit & Documentation Fee (as per CDC Schedule of Fees and Deposits, approved by SECP). Only Crossed Cheque, Pay Order or Demand Draft is accepted.

  • In case of a Corporate Brokerage House, Standard custody clause in Memorandum of Association is also required.
  • Signature Card can be collected/requested from CDC offices.
  • Participant/Account Holder Agreement is provided after receiving all the required documents from client.
  • In case of induction due to corporatization or transfer of membership to subsidiary, Notice of Termination u/r 15.10.1 is required from individual/transferor member.

Additional Documents

  • Board Resolution: Certified true copy of the Board Resolution (BR) nominating signatories on behalf of the company on CDC’s prescribed format is required from the applicant. Board Resolution (Account Holder) |  Board Resolution (Participant)
  • Certified true copy of Memorandum and Articles of Association
  • Certified true copy of Certificate of Incorporation
  • Certified true copy of Certificate of Commencement of Business (not applicable for Private Limited  Companies)
  • Certified true copy of Certificate of Change of Company Status / Name (If applicable)
  • Certified true copy of Banking License (in case of a Bank)
  • Certified true copy of NBFC License (in case of a NBFC)
  • Certified true copy of Modaraba Authorization Certificate – Form III, Minimum Subscription Certificate – Form IV, Registration Certificate & Prospectus (in case of a Modaraba)

Once the installation and training is done, CDC opens the account in CDS and provides the Post Account Opening Package to the Participant/Account Holder.

Note: Participants/Account Holders are requested to ensure that their registration number exists in NCDB (National Clearing Database) prior to initiating the opening of CDC account.