Systems. Infrastructure. Quarterly Newsletter. Railway Track. Central Depository Company

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Nathan Porter
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Railway tracks are a land transport means to carry large number of passengers and heavy loads across long distances. Railway stands for modernity.

Central Depository Company (CDC) is the infrastructure backbone of Pakistan Capital Market. The Company stands as a symbol of innovation.

2 Quarterly Newsletter Central Depository Company Infrastructure Systems Dam Shipping Port Railway Track Power Grids Infrastructure facilities are essential for economies to grow and function competitively. These systems connect and bind together businesses and nations through enhancing connectivity, transmitting public utilities and information and creating jobs. Railway tracks are a land transport means to carry large number of passengers and heavy loads across long distances. Railway stands for modernity. It is one of the few technological innovations that brought large scale transformation in economic and social activity of human population across the globe. Central Depository Company (CDC) is the infrastructure backbone of Pakistan Capital Market. The Company stands as a symbol of innovation. It revolutionized the Capital Market activity by making processes efficient and services secure for the investors. Head Office: CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi Tel: (92-21) I Fax: (92-21) PSX Branch: Mezzanine Floor, Pakistan Stock Exchange Building I.I Chundrigar Road, Karachi. Tel: (92-21) I Fax: (92-21) Islamabad Branch: Room # 410, 4th Floor, ISE Towers REIT Management Limited, 55-B, Jinnah Avenue, Blue Area, Islamabad. Tel: (92-51) I Fax: (92-51) Lahore Branch: 307, 2nd Floor, Upper Mall, Lahore Tel: (92-42) I Fax: (92-42) Abbottabad Office: 1st floor, Al-Fateh Shopping Centre, Opp. Radio Station, Mansehra Road, Abbottabad. Tel: (92-992) info@cdcpak.com URL: Customer Support Services: (CDCPL) For Overseas Callers: +92 (21)

3 Contents 01 CDC launches Centralized eipo System (CES) 03 CDC organizes first ever Pakistan Capital Market Expo in Peshawar 04 Investor Awareness Initiatives 06 Shanghai Clearing House Delegation visits CDC House 06 Industry-Academia Collaboration Business schools visit CDC 07 CDC-MUFAP to launch a joint newsletter 07 More organizations opt for ITMinds Limited BPO Services for retirement benefit funds Notice Board Statistical Highlights

4 CDC launches Centralized eipo System (CES) 01

5 S ince its inception, CDC has strived to make investing in Capital Market easier and convenient. Many technological initiatives have been introduced over time with an aim to make the process less cumbersome. In this regard, a new system to facilitate investors of Pakistan Capital Market the Centralized e-ipo System (CES) was launched in May CDC has developed CES through which applications for subscription of shares offered to general public can be made electronically and payments can be made by Internet/Mobile banking, ATMs etc., avoiding the hassle of physical submission of IPO application and visiting the bank. The IPO of Ittefaq Iron Industries was the first electronic IPO to be processed through this system in May, Investors can register themselves on eipo portal ( free of cost and get alerts of upcoming IPOs through SMS and . The portal is available 24/7 for registration. Through CES, CDC aims to help increase the outreach of IPOs, promote the culture of keeping securities in book-entry form and make the IPO process more user-friendly and efficient. An agreement for processing of payments electronically as part of CES was also signed between CDC and 1LINK (Guarantee) Limited. INVESTOR IPO Subscription Payment CES Portal Bank Portal Registration Subscription Tracking Balloter/RTA Balloting Issue of Shares Internet Mobile ATM OTC Payment by using Bank account credentials and CES Subscription ID 02

CDC organizes first ever Pakistan Capital Market Expo in Peshawar T he drive for investor cultivation is one of the major contributions of CDC for the development of Pakistan Capital Market.

6 CDC organizes first ever Pakistan Capital Market Expo in Peshawar T he drive for investor cultivation is one of the major contributions of CDC for the development of Pakistan Capital Market. In line with this drive, each year CDC strives to expand the outreach of Capital Market by organizing Financial Literacy Workshops, Investor Awareness Sessions and Capital Market Expos in different cities across the country. In April 2017, CDC held the first ever Pakistan Capital Market Expo in Peshawar, in collaboration with Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX) and other Capital Market entities. The event was attended by over 900 current and potential investors who were educated about investment opportunities available in the Pakistan Capital Market and steps taken for protection of investor assets. The event was endorsed by the Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI). Representatives of leading Stock Brokers, Asset Management Companies and Banks had set up exhibition stalls to provide information about their products and services to the visitors. Mr. Haji Muhammad Afzal, KPCCI President, was present as the Chief Guest at the occasion. Interactive awareness sessions on Pakistan Stock Exchange, investment in stocks and mutual funds were conducted by Mr. Sani-e-Mahmood Khan, Head of Product Development and Marketing, Pakistan Stock Exchange (PSX), Syed Murtaza Abbas Naqvi, Joint Director Investor Education and International Relations, Securities and Exchange Commission of Pakistan (SECP), Mr. Arif Ahmed, Manager Marketing, Central Depository Company of Pakistan Limited (CDC) and Ms. Ayesha Farooq, Manager Marketing, Atlas Asset Management Company. Participants actively engaged in discussions on these topics. Mr. Haji Muhammad Afzal, greatly appreciated the efforts of CDC in organizing the event. He further commented that there should be greater collaboration between KPCCI and the Capital Market and that such events should be organized in other cities of KPK as well. 03

7 Investor Awareness Initiatives THE Capital Market Awareness for Journalists and Lawyer Community On April 27, 2017, representatives of CDC, SECP and PSX jointly conducted awareness sessions on investment opportunities available in Pakistan Capital Market at National Press Club Islamabad, which was attended by 25 reporters and journalists, and at Rawalpindi Islamabad Tax Bar Association (RITBA), which was attended by 35 members of the Tax Bar Association. Mr. Ejaz Hassan Rathore, President RITBA personally welcomed the delegation and appreciated the endeavor. Investor Awareness for Sub-Account and Investor Account Holders in Rawalpindi and Islamabad On April 28, 2017, representatives of CDC and SECP jointly conducted Investor Awareness seminars at Blue Lagoon Club and ISE Tower Islamabad. Account and Investor Portfolio Protection measures were discussed in the seminars which were attended by more than 95 and 88 persons respectively. After the seminar, there was a question and answer session where the attendees asked queries related to the Capital Market. Seminars in Karachi CDC conducted two Investor Awareness Seminars at CDC House and ICAP, Clifton on April 8 and 13, 2017 respectively. The event was attended by CDC s IAS and Sub Account holders. The participants were apprised about CDC s new product offerings and protective measures with respect to their securities. The event attracted a good number of attendees. Moreover, CDC in collaboration with Al Meezan Investment Management Limited conducted an awareness seminar in Gulshan-e-Iqbal, Karachi on May 24, The event held at M.A.I. Convention Centre was attended by more than 550 participants including CDC s IAS and Sub Account holders and Al Meezan Account holders. 04

Financial Literacy Workshops in Lahore Capital Market Awareness Sessions at Business Schools in Peshawar To inculcate a culture of savings and investment in Pakistan, CDC regularly organizes

Shuja Qureshi, known for hosting various Capital Market talk shows. The financial education workshops informed general public about safe and secure investment opportunities in Pakistan Capital Market.

8 Financial Literacy Workshops in Lahore Capital Market Awareness Sessions at Business Schools in Peshawar To inculcate a culture of savings and investment in Pakistan, CDC regularly organizes Financial Literacy Workshops across the country. Continuing in this spirit, two workshops titled Money Matters were conducted in Lahore in May 2017 by Mr. Shuja Qureshi, known for hosting various Capital Market talk shows. The financial education workshops informed general public about safe and secure investment opportunities in Pakistan Capital Market. A total of 116 current and potential investors, including CDC Investor Account Holders and students attended these workshops held at Lahore School of Economics and Superior University Lahore. I n the month of April, a team of CDC officials conducted Investor Awareness sessions in two business schools of Peshawar. IM Sciences Hayatabad (Peshawar) - Total 70 students attended the session on April 24, University of Agriculture Peshawar (Institute of Business & Management Sciences) Total 300 students attended the session on April 25, CDC representatives briefed the students about Capital Market operations, Investment Avenues and role of CDC in providing utmost convenience and protection to the investors. The students actively participated in the question and answer session that followed the presentation. The faculty members appreciated the visit and requested for similar sessions in the future. The students and faculty were also invited to the Capital Market Expo that was to be held in Peshawar. 05

Shanghai Clearing House Delegation visits CDC House Afive member delegation from Shanghai Clearing House(SHCH) visited CDC House, Karachi on April 25, 2017. Mr.

9 Shanghai Clearing House Delegation visits CDC House Afive member delegation from Shanghai Clearing House(SHCH) visited CDC House, Karachi on April 25, Mr. Aftab Ahmed Diwan, CEO CDC, briefed the guests in detail about the organizational structure of CDC along with the details of the different businesses that CDC carries out such as Depository Services, Trustee and Custodial Services and Share Registrar Services. The SHCH delegation also discussed their organization s structure and expressed hoped for collaborative ventures between CDC and SHCH in future. Industry-Academia Collaboration Business schools visit CDC C DC has always contributed in development of future corporate leaders and professionals of this country by inviting students of different business schools and colleges to visit CDC, and learn about the organization s structure, operations, leadership roles and contribution to the development of Pakistan Capital Market. Some of the universities that visited CDC this quarter are: Jamiatur Rasheed Al-Hamd Academy IBA Sukkur Students were briefed about Pakistan Capital Market and CDC s significant role in keeping it efficient, safe and transparent. Also a group of BBA students from Iqra University visited CDC as part of their Principles of Management research project. They conducted a survey about managerial roles and practices adopted by professionals of the organization. A group of BBA students from Jinnah University for Women also visited the Marketing Department to conduct a survey about roles and practices of marketing professionals. 06

10 CDC - MUFAP to launch a joint newsletter CDC and Mutual Funds Association of Pakistan (MUFAP) have agreed to develop a joint newsletter, first edition of which will be published in September The newsletter will highlight Capital Market operations and achievements, diversified investment options available, the associated risks and rewards and benefits of investment through Mutual Funds. Moreover, the newsletter will cover the activities of the Mutual Funds industry in greater depth. It will discuss the benefits of investing in Mutual Funds which include having a diversified investment portfolio managed by professional Fund Managers with versatile exposure, skills and market knowledge and enhanced investor protection through additional layer of regulation through a Trustee. The newsletter will also have a separate section dedicated to Islamic Funds. More organizations opt for ITMinds Limited BPO Services for retirement benefit funds I TMinds Limited recently introduced a new service line as part of its Business Process Outsourcing (BPO) services - provision of accounting services for retirement benefit funds. As a result, ICI Pakistan Limited and Crescent Steel & Allied Products Limited have signed an agreement with ITMinds Limited for accounting services of the retirement benefit funds being managed by these organizations. ITMinds Limited offers a thorough, efficient and cost effective solution to organizations to handle their staff retirement benefits. The services include financial reporting, management information reporting and facilitation to auditors. Such outsourcing arrangements enable organizations to focus on their core competencies, reduce operational cost and improve efficiency. 07

11 Notice Board THE New regulatory measure with respect to Sub-Accounts maintained without Sub-Account Opening Forms [Circular April 24, 2017] A circular was dispatched in relation to new regulatory measure with respect to Sub-Accounts maintained without Sub-Account Opening Forms in order to ensure compliance with CDC Regulations. Revision in Schedule of Fees for Investor Account Services [Circular June 06, 2017) A notice was dispatched to all Elements of Central Depository System (CDS) informing them about a revision in the tariff of Investor Account Services that was approved and published in the Official Gazette of Pakistan on May 24, This revision in tariff has become effective from July 01, under Regulation 7B of NCCPL Regulations read with provisions of Chapter 9C of the CDC Regulations. Under the enhanced MF regime, the Financial Institutions (FIs) will finance the broker Participants who will subsequently finance their investors through pledging of financed securities directly from the client s account in favour of relevant FI. The entire process will be undertaken based on a tripartite agreement to be executed between the FI, Broker Participant and the Financee Investor. The amendments in CDCPL Regulations relating to Enhanced Margin Finance System have also been approved by the Securities and Exchange Commission of Pakistan (SECP). The revised procedure of MF Regime as well as an updated copy of CDCPL Regulations incorporating the above amendments are available on CDC's corporate website ( Enhanced Margin Financing Regime [Circular June 19, 2017] An Enhanced Margin Financing Regime (MF) has been developed and implemented by National Clearing Company of Pakistan Limited (NCCPL). As a result, CDC also made necessary system level changes in light of requirements prescribed 08

12 STATISTICAL HIGHLIGHTS CENTRAL DEPOSITORY SYSTEM (CDS) AS ON JUNE 30, 2017 TFCs / Sukkuk 94 Open End Units 35 Preference Shares 18 Ordinary Shares 698 Issuers 724 Participants / Account Holders 559 Pledgees 94 09

13 SECURITIES INDUCTED INTO CDS S. No. Security Name Security Type Live Date 1 Ghani Gases Limited - Sukuk Certificates Debt Instruments 13 Apr, Sufi Steel Industries (Pvt.) Limited Ordinary Shares 03 Apr, Interloop Limited - Non-Voting Ordinary Shares Ordinary Shares 10 Apr, Hub Power Holding Limited Ordinary Shares 27 Apr, Ittefaq Iron Industries Limited Ordinary Shares 10 May, Pno Capital Limited Ordinary Shares 16 May, Inbox Business Technologies Limited Ordinary Shares 26 May, Indus Wind Energy Limited Ordinary Shares 29 May, Nutrico Morinaga (Pvt.) Limited Ordinary Shares 05 Jun, The Pakistan Credit Rating Agency Limited Ordinary Shares 07 Jun, Renacon Pharma Limited Ordinary Shares 30 Jun, 2017 SECURITIES DELISTED FROM CDS S. No. Security Name Security Type Delist Date 1 National Industrial Parks Dev. & Mgmt.Co.-Sukuk Certificates Debt Instruments 12 Apr, Dreamworld Limited (Revoked W.E.F ) Ordinary Shares 12 Apr, Pakistan Stone Development Company - Sukuk Certificates Debt Instruments 25 Apr, K-Electric Limited - Azm - Sukuk Certificates #2 ( ) Debt Instruments 11 May, PICIC Asset Management Company Limited Ordinary Shares 07 Jun, Lucky Cotton Mills (Pvt.) Limited Ordinary Shares 13 Jun,

14 CORPORATE ACTIONS CREDIT OF NEW ISSUES/OFFER FOR SALE S. No. Security Name Issue Type Security Type Apply Date Ghani Gases Limited - Sukuk Certificates Interloop Limited - Non-Voting Ordinary Shares JS Global Capital Limited - Commercial Papers Ittefaq Iron Industries Limited (Book Building Portion) Ittefaq Iron Industries Limited (General Public Portion) Ittefaq Iron Industries Limited - (General Public Portion - 2nd Tranch) New Issue New Issue New Issue New Issue New Issue New Issue Debt Instruments Ordinary Shares Debt Instruments Ordinary Shares Ordinary Shares Ordinary Shares 12 Apr, Apr, Jun, Jun, Jun, Jun, 2017 CREDIT OF SHARES / CERTIFICATE AGAINST RIGHT ISSUE / FURTHER ISSUE S. No. Security Name To Effective Date 1 Bank Alfalah Limited Further Issue (ESOS) 10 May, D.S. Industries Limited Further Issue 26 May, Treet Corporation Limited Further Issue (ESOS) 26 May, Telenor Microfinance Bank Limited Further Issue 13 Jun, TPL Properties Limited Further Issue - Without Right Offer 21 Jun, 2017 DETAIL OF PARTIAL CONVERSION AND CANCELLATION S. No. Security Name Apply Date 1 Aisha Steel Mills Limited 11 Apr, Aisha Steel Mills Limited Conv. Cumulative Preference Shares 11 Apr, Aisha Steel Mills Limited 17 Apr, Aisha Steel Mills Limited Preference Shares 17 Apr, Aisha Steel Mills Limited 28 Apr, Aisha Steel Mills Limited Conv. Cumulative Preference Shares 28 Apr, Aisha Steel Mills Limited Preference Shares 15 May, Aisha Steel Mills Limited 15 May, Aisha Steel Mills Limited Preference Shares 08 Jun, Aisha Steel Mills Limited 08 Jun, Javedan Corporation Limited. -12%Cum, N.Vot, Conc & Red Preference.Shares 23 Jun, Javedan Corporation Limited 23 Jun, 2017 DETAIL OF CHANGE OF R/TA (LISTED & UNLISTED) S. No. Security Name From To Effective Date 1 Attock Refinery Limited THK Associates (Pvt.) Limited Central Depository Company Of Pakistan Limited. - R/TA Services 30 Jun,

15 CREDIT OF BONUS ISSUE THE S.No. Security Name % Of Bonus Declared Apply Date 1 Jubilee Life Insurance Company Limited Credit of 95% of 10% Bonus Shares 17 Apr, Faysal Bank Limited Credit of 95% of 10% Bonus Shares 24 Apr, The Searle Company Limited Credit of 95% of 10% Bonus Shares 26 Apr, Avanceon Limited Credit of 95% of 25% Bonus Shares 05 May, Jubilee General Insurance Company Limited Highnoon Laboratories Limited Credit of 95% of 12% Bonus Shares 19 May, 2017 Century Insurance Company Limited Credit of 95% of 10% Bonus Shares 19 May, 2017 Jubilee Life Insurance Company Limited Remaining 5% of 10% Bonus Shares 19 May, 2017 Askari General Insurance Company Limited Reliance Insurance Company Limited Credit of 95% of 10% Bonus Shares 25 May, 2017 Premier Insurance Limited Credit of 95% of 10% Bonus Shares 26 May, 2017 The United Insurance Co. of Pakistan Limited The Pakistan General Insurance Company Limited Faysal Bank Limited Remaining 5% of 10% Bonus Shares 31 May, 2017 Century Insurance Company Limited Credit of 5% of 10% Bonus Shares 07 Jun, 2017 Premier Insurance Limited Credit of 5% of 10% Bonus Shares 09 Jun, 2017 Askari General Insurance Company Limited Credit of 95% of 15% Bonus Shares 12 May, 2017 Credit of 95% of 15% Bonus Shares 24 May, 2017 Credit of 95% of 11% Bonus Shares 25 May, 2017 Credit of 95% of 16% Bonus Shares 29 May, 2017 Credit of 5% of 15% Bonus Shares 13 Jun, 2017 The Searle Company Limited Credit of 5% of 10% Bonus Shares 14 Jun, 2017 Reliance Insurance Company Limited Credit of 5% of 10% Bonus Shares 22 Jun, 2017 Highnoon Laboratories Limited Credit of 5% of 12% Bonus Shares 23 Jun, 2017 Faysal Bank Limited Credit of 5% of 10% Bonus Shares 29 Jun, 2017 CREDIT OF UNPAID RIGHTS S. No. Security Name Apply Date 1 Gul Ahmed Textile Mills Limited 07 Apr, Mughal Iron And Steel Industries Limited 13 Apr, Ghani Glass Limited 17 May, The Bank of Punjab 18 May, Aisha Steel Mills Limited 18 May, Aisha Steel Mills Limited - Preference Shares 18 May, Aisha Steel Mills Limited.-Conv. Cumulative Preference Shares 18 May, Power Cement Limited 19 May, Orix Leasing Pakistan Limited 30 May, Metro Power Company Limited 06 Jun, Sakrand Sugar Mills Limited 12 Jun, Husein Sugar Mills Limited 13 Jun, International Packaging Films (Pvt.) Limited 13 Jun,

16 INVESTOR ACCOUNT SERVICES (IAS) AS ON JUNE 30, 2017 CORPORATE INVESTOR ACCOUNT INDIVIDUAL INVESTOR ACCOUNT 1,147 Karachi 36, Lahore 8, Islamabad 4,645 NO. OF ACCOUNTS 51,022 NO. OF SECURITIES (in Bil) ACTIVATIONS (FOR IAS CUSTOMERS) AS ON JUNE 30, 2017 No. of IAS Account 51,022 Activation of IVR/WEB 28,766 Activation of SMS 41,042 13

17 PSX AND CDS SUMMARY AS ON JUNE 30, Listed Companies at PSX Listed Capital at PSX (in Billion) Number of shares in CDS (in Billion) Units of Open-End funds in CDS (in Million) Units of TFCs, Sukuks and Bonds in CDS (in Million) Market Capitalization in PSX (in Billion) 9, Market Capitalization of shares in CDS (in Billion) 5, Percentage of shares in CDS w.r.t. Share Capital * 86.26% *Excluding GoP holding WORLD MARKET INDICES Index Value as on June 30, 2017 BSE SENSEX 30, S&P/ TSX Composite 15, FTSE 100 (London) 7, NIKKEI 225 (Tokyo) 20, DAX (Frankfurt) 12, CAC 40 (Paris) 5, ALL ORDINARIES 5, HANG SENG (Hong Kong) 25, Source: Google Finance SHARES TRADED AT PSX DURING LAST 6 MONTHS TURNOVER OF SHARES MONTH CLOSING MARKET CAPITALIZATION READY FUTURE CONTRACT (RS. IN MILLION) (NO. IN MILLION) (NO. IN MILLION) December 7, , ,628, January 9, , ,727, February 7, , ,619, March 5, , ,594, April 4, , ,835, May 7, , ,083, Source: PSX Quotation PSX 100 INDEX DURING THE LAST 6 MONTHS 51,000 50,500 50,592 50,000 49,500 49,000 48,500 48,758 48,534 49,301 48,000 48,156 47,500 47,807 47,000 46,500 46,000 December January February March April May 14

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Systems. Infrastructure. Quarterly Newsletter. Railway Track. Central Depository Company

Systems. Infrastructure. Quarterly Newsletter. Railway Track. Central Depository Company Quarterly Newsletter Central Depository Company Infrastructure Systems Dam Shipping Port Railway Track Power Grids The world is connected by oceans, and modern civilization is connected by ports. Acting