Systems. Infrastructure. Quarterly Newsletter. Dam Railway Track. Shipping Port Power Grids. Central Depository Company

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Rodger Morris
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Dams are one of the oldest infrastructure systems, incredibly designed to retain the most valuable resource - water.

2 Quarterly Newsletter Central Depository Company Infrastructure Dam Railway Track Systems Shipping Port 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. Dams are one of the oldest infrastructure systems, incredibly designed to retain the most valuable resource - water. This water reservoir is then channeled for irrigation, aquaculture, industrial use and when the floodgates are let open, the massive flow helps create hydroelectric power, a major source of electricity in the world. Central Depository Company (CDC) is the infrastructure backbone of Pakistan Capital Market. The Company plays a vital role in connecting all financial market stakeholders and channeling essential, efficient and secure services to the investors, to ensure growth and development of the Capital Market. 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 becomes Pakistan s first ISO certified company for its Business Continuity Management Program 02 CDC launches MAccess CDC Access Mobile Application 03 Investor Protection Initiative: CDC signs Depository Participant agreement with UBL 04 CDC organizes Pakistan Capital Market Expo in Faisalabad and Sialkot 06 CDC conducts first phase of nationwide Investor Awareness Seminars 07 NBFI & Modaraba Association of Pakistan launches Islamic Finance Centre at Abbottabad Sarmayakari Markaz 08 Visit of Foreign Delegations to CDC House 09 Industry Academia Collaboration: CDC conducts Awareness Session in Sindh Madressatul Islam University 10 CDS Updates 11 Statistical Highlights

4 CDC becomes Pakistan s first ISO certified company for its Business Continuity Management Program A t Central Depository Company (CDC), we consistently strive to create sustainable work environment by ensuring that our services can withstand expected and unexpected disruptions. We have prepared ourselves to counter any threats against our information assets and business processes by engaging in perpetual vigilance through acquiring benchmark international operational standards. In March 2017, CDC took another major step in this direction and became Pakistan s first and only organization to be certified with the ISO international standard for its Business Continuity Management program. This certification has been awarded by SGS Pakistan and accredited by the United Kingdom Accreditation Service after a series of comprehensive audits. For CDC, the ISO builds upon the success of British Standard BS and other regional standards. It is important to highlight that in 2012 CDC was also the first and till date only organization in Pakistan to obtain BS This accreditation is a global endorsement of CDC s readiness to handle a variety of natural and man-made disaster situations in a well-structured manner. The ISO management system facilitates organizations to identify threats relevant to their business and the critical business functions they could impact. And it allows organizations to put plans in place ahead of time to ensure their business doesn t come to a standstill. Supported by a resilient IT infrastructure, disaster recovery and business continuity arrangements, CDC can respond to a number of business disruptions by resuming critical functions in the shortest possible time span. CDC conducts regular business continuity drills involving users and partner organizations to assess its crisis management capabilities. The motivation and efforts involved in achieving this global standard highlights CDC s best practices approach for the investors protection and the benefit of overall capital market. 01

5 CDC launches MAccess CDC Access Mobile Application C DC continuously keeps adopting new technological solutions to make its services more efficient. In March, 2017 CDC launched MAccess, the mobile application for its CDC Access web portal, to offer greater protection and convenience to Capital Market investors. Through this initiative, CDC account holders can now manage their CDC account via their mobile phones with better features and enhanced ease. The features offered to the CDC account holders by this service are as follows: Account Tracking 24/7 Online Transaction Access to 30 days of transaction history Access to account holder s own corporate actions Personalized account information The MAccess mobile application can be downloaded from the following link (for Android & Apple users): 02

6 Increased Investor Convenience: CDC signs Depository Participant agreement with UBL CDC has remained committed to making the Capital Market investment process easier and more convenient for the people of Pakistan. The Company has time and again adopted business practices that enhance accessibility to Capital Market for investors at all levels of the investment cycle. In March, CDC joined hands with United Bank Limited (UBL) for yet another such venture by signing a Depository Participant agreement through which it seeks to provide UBL customers the convenience to open account with CDC and conduct transactions through UBL branches in Karachi, Lahore and Islamabad. Moreover, this service will allow UBL branches to provide custodial services to its customers, fulfilling their needs regarding safe custody of securities. This initiative was jointly led by Mr. Shariq Naseem, Head of Product Development and Marketing CDC and Ms. Maliha Anwer Khan, Head of Wealth Management & Non-Resident Pakistani Banking UBL. The signing ceremony was attended by Mr. Aftab Ahmed Diwan, CEO-CDC and senior management of the company. Mr. Zia Ijaz, Group Executive-Retail Bank UBL and Mr. Sharjeel Shahid, Group Head Banking Products & Corporate Services UBL, along with senior executives from UBL were also present at the event. This initiative will add a new dimension to our offering for our valued customers. This service will provide ease and convenience to the customers of having all their custodial needs handled at their nearest UBL Branch. Mr. Zia Ijaz, Group Executive- Retail Bank UBL The service will provide CDC an opportunity to expand its outreach in the country through the additional customer touchpoints and leverage the UBL Branch Network to increase financial inclusion in the country. Mr. Aftab Diwan, CEO-CDC 03

CDC organizes Pakistan Capital Market Expo in Faisalabad and Sialkot C DC stepped into 2017 with an increased determination to broaden investor base of the Pakistan Capital Market.

7 CDC organizes Pakistan Capital Market Expo in Faisalabad and Sialkot C DC stepped into 2017 with an increased determination to broaden investor base of the Pakistan Capital Market. Only a few days into the New Year, Pakistan Capital Market Expo was held in the cities of Faisalabad and Sialkot, supported by their respective Chambers of Commerce and Industry, bringing together several Capital Market representatives to share their insights and thoughts about investment avenues and opportunities available in the financial market. 04

The speakers invited at the events included Syed Murtaza Abbas Naqvi, Joint Director, Securities and Exchange Commission of Pakistan (SECP) who briefed the audience about the investor protection and

8 The speakers invited at the events included Syed Murtaza Abbas Naqvi, Joint Director, Securities and Exchange Commission of Pakistan (SECP) who briefed the audience about the investor protection and regularity framework put in place by the regulatory body and details about its Jamapunji initiative. His presentation was followed by a briefing about the modus operandi of the Pakistan Stock Exchange (PSX) and the details of it s progress over the years by Mr. Sarmad Hussain, Regional Incharge -Lahore, Pakistan Stock Exchange. Ms. Mashmooma Zehra Majeed, CEO Mutual Funds Association of Pakistan (MUFAP) also addressed the audience about the Mutual Funds industry and ways to invest in mutual funds. The presentations were followed by a question and answers session. Mr. Arif Ahmed, Marketing Manager- CDC, moderated both the sessions. The event in Faisalabad was held on January 17, 2017 and was presided by Engr. Muhammad Saeed, President, Faisalabad Chamber of Commerce and Industry as the chief guest. In Sialkot, the expo was held on January 19, 2017 and Mr. Chaudhary Ahmed Zulfiqar Hayat, Chairman Department Committee of FBR/Customs/Sales Tax/Federal Taxation and Sialkot Chamber of Commerce and Industry attended the event as the chief guest. The highlight of both the events was a grand exhibition area, setup by CDC for the session attendees. Several leading capital market entities participated in the exhibition including stock brokers and AMCs, along with SECP. The event received overwhelming response from residents of both the cities who further appealed to increase the frequency of such events in future. The events were concluded with a dinner. 05

9 CDC conducts first phase of nationwide Investor Awareness Seminars A s an infrastructure institution of Pakistan s Capital Market, spreading awareness about the financial market operations and available investment avenues is one of the core commitments of CDC. This January, a team of CDC officials visited northern parts of the country for conducting Investor Awareness Seminars. These seminars were aimed at enhancing the awareness of investors and business students with respect to investor protection, roles and responsibilities of the investors and the general operations of CDC and the Capital Market, attracting a good number of audience. During the first phase of the campaign seminars were held in the cities of Gujranwala, Gujrat, Sargodha, Lahore, Peshawar and Rawalpindi from January 4 to 9, The second phase of these seminars will be conducted in Mirpur and Muzaffarabad districts of Azad Jammu and Kashmir of Pakistan in the approaching quarter. The main objective of these sessions is to enlighten the attendees with respect to asset protection and measures needed to safeguard their investments. Moreover, the awareness sessions also shed light on the new initiatives taken by CDC for the development of Capital Market. Mr. Aftab Diwan, CEO-CDC while reiterating the importance of investor awareness said: CDC has been leading the investor awareness campaign since 2005, generating confidence and motivation in the investing public towards the Capital Market. 06

10 NBFI & Modaraba Association of Pakistan launches Islamic Finance Centre at Abbottabad Sarmayakari Markaz T he NBFI & Modaraba Association of Pakistan recently became a participant at the Abbottabad Sarmayakari Markaz (ASM). The office of the association titled Islamic Finance Centre was inaugurated by Mr. Zafar Abdullah, Commissioner- Specialized Companies Division and Information System and Technology Department, SECP on March 9, The event was also attended by Mr. Imran Inayat Butt, Executive Director, SECP and Mr. Usman Hayat, Executive Director, SECP, who were welcomed by Mr. Ayaz Dawood, Chairman, NBFI & Modaraba Association of Pakistan and other senior members of the association. The centre will provide Investor Education and Awareness about the Islamic mode of investment and expand the association s outreach to the residents of Abbottabad and the surrounding cities of Haripur, Mansehra, and Balakot etc. NBFI & Modaraba Association of Pakistan is a representative body of Modarabas, Leasing Companies, a few Investment Banks and a Window Takaful Operations functional in the country. ASM is Pakistan s first ever Capital Market Business Hub, established by SECP in collaboration with CDC. Capital Market Business Hub is a concept of centralized premises where major capital market entities, including AMCs and stock brokers maintain their presence. Through this endeavor, the outreach of the capital market will be greatly enhanced especially in smaller cities of the country. 07

11 Visit of Foreign Delegations to CDC House Chinese delegation visits CDC House A 20 member delegation from a Chinese consortium comprising of China Financial Futures Exchange (CFFEX), Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE) and Pak China Investment Company Limited (PCIL), along with HBL representatives visited CDC House, Karachi on March 8, 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 delegation also discussed the introduction of regulatory coordination between CDC and SECP/PSX. Citibank delegation visits CDC Adelegation from Citibank visited CDC House on March 8, The delegation comprised of Mr. Reto Faber, Managing Director Head of Direct Clearing and Custody, Europe, Middle East and Africa (EMEA) and Mr. Osman Gunsel Topbas, Director, Cluster Head, Middle East, North Africa, and Turkey. The delegation was welcomed by Mr. Aftab Ahmed Diwan, CEO - CDC. Mr. Shariq Naseem, Head of Product Development and Marketing, gave a detailed presentation to the guests on the success story of CDC and its pivotal role in the development of Pakistan Capital Market. Both the invitees greatly appreciated the efforts and global role of CDC. 08

12 Industry-Academia Collaboration: CDC conducts awareness session at Sindh Madressatul Islam University C DC spearheads the drive of spreading awareness and educating potential investors about Pakistan Capital Market. As part of this endeavor, CDC conducts awareness sessions at universities and graduate schools across Pakistan. A recent session was held on March 27, 2017 by the Marketing department of CDC at Sindh Madressatul Islam University, the alma mater of Quaid-e-Azam Muhammad Ali Jinnah. The presentation was attended by 45 students and faculty members of the university. The majority of the attendees were enrolled in MS or MPhil programs. The presentation started with a brief outlook of systems and processes of Capital Market in Pakistan and led to the introduction of CDC and its purpose and achievements. The main aim was to enlighten students about the technological innovation brought in by CDC that transformed the country s financial market into a more efficient and well organized structure. The presentation was kept interactive by a question answer session, where the students showed outstanding response and interest. 09

13 CDS Updates THE Intimation for Go-Live of Non-Free Float Functionality in CDS [Circular March 29, 2017] Clients were informed about the recently developed functionality in Central Depository System (CDS) namely Non Free Float Shares through which R/TAs are now required to insert the necessary non free float details of listed securities in CDS. For any system related queries or concerns following representative of CDC may be contacted: Mr. Muhammad Iqbal Shamsi, Assistant Manager Operations & Customer Support Services Ext: 1132 The objective of this initiative is to facilitate the reporting and compilation of the data at a centralized level without the need of issuing physical letters etc. Through this functionality, specific accounts could also be identified where the non-free float shares of any particular security reside. Relevant reports have also been made available in CDS. In this regard, awareness sessions were also organized for Registrars / Issuers by Pakistan Stock Exchange (PSX) in collaboration with CDC from February 21 to 23, 2017 in Karachi and on March 16 and 17, 2017 in Lahore & Islamabad respectively. The said functionality will be live in CDS from April 03, For regulatory queries following representative of PSX may be contacted: Mr. Wasim Abdul Sattar, Manager Company Affairs

14 STATISTICAL HIGHLIGHTS CENTRAL DEPOSITORY SYSTEM (CDS) AS ON MARCH 31, 2017 TFCs / Sukkuk 95 Open End Units 35 Preference Shares 18 Ordinary Shares 691 Issuers 721 Participants / Account Holders 591 Pledgees 94 11

15 SECURITIES INDUCTED INTO CDS S. No. Security Name Security Type Live Date 1 Neelum Jhelum Hydropower Co. (Pvt.) Limited - Sukuk Certificates (Series B) Debt Instruments 02 Jan, Wellinnova Life Sciences (Pvt.) Limited Ordinary Shares 04 Jan, Pakistan Mortgage Refinance Company Limited Ordinary Shares 05 Jan, AGP Limited Ordinary Shares 09 Jan, Fatima Fertilizer Company Limited-Sukuk Certificates ( ) Debt Instruments 18 Jan, AKD Securities Limited Ordinary Shares 24 Jan, Chaudhry Steel Re-Rolling Mills Limited Ordinary Shares 31 Jan, Pak Elektron Limited - Commercial Papers (2nd Issue) Debt Instruments 01 Feb, E. A. Management (Pvt.) Limited Ordinary Shares 03 Feb, Ijara Capital Partners Limited Ordinary Shares 10 Feb, Roshan Packages Limited Ordinary Shares 14 Feb, Din Corporation (Pvt.) Limited Ordinary Shares 20 Feb, Shakarganj Food Products Limited Ordinary Shares 28 Feb, The Bank Of Punjab TFC Debt Instruments 07 Mar, Interloop Limited Ordinary Shares 10 Mar, Narowal Energy Limited Ordinary Shares 17 Mar, JS Bank Limited - TFC Debt Instruments 17 Mar, 2017 SECURITIES DELISTED FROM CDS S. No. Security Name Security Type Delist Date 1 Associated Services Limited Ordinary Shares 30 Jan, Pakistan Mobile Communications Limited-TFC (6th ISSUE) Debt Instruments 08 Feb, Meezan Sovereign Fund Open End Units 09 Feb, Meezan Cash Fund Open End Units 09 Feb, Amreli Steels Limited-Sukuk Certificates - Freeze Debt Instruments 22 Feb, Pakistan Refinery Limited - TFC1 ( ) Debt Instruments 14 Mar,

16 CORPORATE ACTIONS CREDIT OF NEW ISSUES/OFFER FOR SALE S. No. Security Name Issue Type Security Type Apply Date Wellinnova Life Sciences (Pvt.) Limited Loads Limited Fatima Fertilizer Company Limited -Sukuk Certificates ( ) Loads Limited Pak Elektron Limited - Commercial Papers (2nd Issue) Roshan Packages Limited Roshan Packages Limited The Bank Of Punjab - TFC Ijara Capital Partners Limited JS Bank Limited - TFC CREDIT OF BONUS ISSUE New Issue New Issue (General Public Portion - 3rd Tranche) New Issue New Issue (4th Tranche) New Issue New Issue (Book Building Portion) New Issue (General Public Portion) New Issue New Issue New Issue Ordinary Shares Ordinary Shares Debt Instruments Ordinary Shares Debt Instruments Ordinary Shares Ordinary Shares Debt Instruments Ordinary Shares Debt Instruments S.No. Security Name % Of Bonus Declared Apply Date 1 The Searle Company Limited Remaining 5% of 14% Bonus Shares 02 Jan, IBL Healthcare Limited Remaining 5% of 15% Bonus Shares 02 Jan, Asia Insurance Company Limited Remaining 5% of 25% Bonus Shares 09 Jan, Ecopack Limited Remaining 5% of 25% Bonus Shares 10 Jan, East West Insurance Company Limited Remaining 5% of 12.5% Bonus Shares 20 Jan, United Distributors Pakistan Limited Remaining 5% of 20% Bonus Shares 26 Jan, Loads Limited Remaining 5% of 10% Bonus Shares 13 Feb, Biafo Industries Limited Remaining 5% of 10% Bonus Shares 13 Mar, Synthetic Products Enterprises Limited Credit of 95% of 10% Bonus Shares 17 Mar, Chaudhry Steel Re-Rolling Mills Limited Credit of 95% of 10% Bonus Shares 17 Mar, Synthetic Products Enterprises Limited Credit of remaining 5% of 10% Bonus Shares 30 Mar, 2017 CREDIT OF UNPAID RIGHTS S. No. Security Name Apply Date 1 Sapphire Dairies (Pvt.) Limited 05 Jan, Pakistan International Bulk Terminal Limited 18 Jan, Takaful Pakistan Limited 30 Jan, TPL Life Insurance Limited 24 Feb, Dubai Islamic Bank Pakistan Limited 01 Mar, Ittehad Chemicals Limited 29 Mar, Jan, Jan, Jan, Jan, Jan, Feb, Feb, Mar, Mar, Mar, 2017

17 CREDIT OF SHARES / CERTIFICATE AGAINST RIGHT ISSUE / FURTHER ISSUE S. No. Security Name To Effective Date 1 International Knitwear Limited Paid Right 11 Jan, Silkbank Limited Right Issue - 4th Tranche 13 Jan, East West Life Assurance Company Limited Right Issue 13 Jan, Sapphire Dairies (Pvt.) Limited Credit of Paid Right 25 Jan, Sindh Modaraba Management Limited Right Issue 27 Jan, Advans Pakistan Microfinance Bank Limited Right Issue 02 Feb, J.K. Spinning Mills Limited Right Issue 03 Feb, Treet Corporation Limited Further Issue 08 Feb, Pakistan Mortgage Refinance Company Limited Right Issue 13 Feb, Next Capital Limited Right Issue 10 Feb, Sindh Leasing Company Limited Right Issue 10 Feb, Masood Textile Mills Limited Right Issue 20 Feb, International Packaging Films (Pvt.) Limited Right Issue 24 Feb, Advans Pakistan Microfinance Bank Limited Further Issue 02 Mar, TPL Life Insurance Limited Paid Right 03 Mar, Pakistan Mortgage Refinance Company Limited Paid Right 06 Mar, Dubai Islamic Bank Pakistan Limited Paid Right 09 Mar, Engro Fertilizer Limited Further Issue 14 Mar, Jauharabad Sugar Mills Limited Further Issue 20 Mar, Pakistan International Bulk Terminal Limited Paid Right 30 Mar, D.S. Industries Limited Further Issue 31 Mar, 2017 DETAIL OF PARTIAL CONVERSION AND CANCELLATION S. No. Security Name Apply Date 1 Aisha Steel Mills Limited 06 Jan, Aisha Steel Mills Limited - Preference Shares 06 Jan, Aisha Steel Mills Limited 09 Jan, Aisha Steel Mills Limited Conv. Cumulative Preference Shares 09 Jan, Aisha Steel Mills Limited 24 Jan, Aisha Steel Mills Limited Preference Shares 24 Jan, Aisha Steel Mills Limited 24 Feb, Aisha Steel Mills Limited Conv. Cumulative Preference Shares 24 Feb, Aisha Steel Mills Limited 14 Mar, Aisha Steel Mills Limited Preference Shares 14 Mar, 2017 DETAIL OF CHANGE OF R/TA (LISTED & UNLISTED) S. No. Security Name From To Effective Date 1 PICIC Energy Fund 2 PICIC Cash Fund THK Associates (Pvt.) Limited THK Associates (Pvt.) Limited HBL Asset Management Limited (For Open End) HBL Asset Management Limited (For Open End) 26 Jan, Jan,

18 INVESTOR ACCOUNT SERVICES (IAS) AS ON MARCH 31, 2017 CORPORATE INVESTOR ACCOUNT INDIVIDUAL INVESTOR ACCOUNT 1,138 Karachi 35, Lahore 8, Islamabad 4,589 NO. OF ACCOUNTS 50,296 NO. OF SECURITIES (in Bil) ACTIVATIONS (FOR IAS CUSTOMERS) AS ON MARCH 31, 2017 No. of IAS Account 50,296 Activation of IVR/WEB 28,118 Activation of SMS 40,209 15

19 PSX AND CDS SUMMARY AS ON MARCH 31, 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) 6, Percentage of shares in CDS w.r.t. Share Capital * 85.70% *Excluding GoP holding WORLD MARKET INDICES Index Value as on March 31, 2017 BSE SENSEX 29, S&P/ TSX Composite 15, FTSE 100 (London) 7, NIKKEI 225 (Tokyo) 18, DAX (Frankfurt) 12, CAC 40 (Paris) 5, ALL ORDINARIES 5, HANG SENG (Hong Kong) 24, 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) September 10, , ,223, October 8, , ,082, November 10, , ,696, December 7, , ,628, January 9, , ,727, February 7, , ,619, Source: PSX Quotation PSX 100 INDEX DURING THE LAST 6 MONTHS 60,000 50,000 40,000 40,542 39,894 42,622 47,807 48,758 48,534 35,000 30,000 September October November December January February 16

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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 Infrastructure facilities are essential for economies to grow and function competitively.