Contents. Oct- Dec Issue No. 48

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2 Contents CDC access estatement and SMS - Incentive Scheme for CDS Participants Pakistan-India Capital Market Regulators agree on Capacity Building ITMINDS becomes a subsidiary of CDC ISO Second Annual Surveillance Audit Cleared CDC participates in Seminar on Capital Market Reforms and Future Outlook Convenience that Rewards Free of Cost SMS and estatement Refund for Investor Account Holders CDC to provide Trustee & Custodial Services to 5 more Funds of Pakistan s Leading AMCs CDC Share Registrar Services expands further Reason Codes Training Sessions CDC Customer Focused Initiatives CDC access IVR ( ) CDS Updates Notice Board Oct- Dec Issue No. 48

3 1 estatement and SMS Incentive Scheme for CDS Participants Realizing that accurate & timely information is the key to strategic decision making, CDC has over the years implemented CDC access, a state-of-the-art customer convenience portfolio of services that provides up-to-date account information to investors on real-time basis. The CDC access services comprise of IVR (Interactive Voice Response), Web, SMS, estatement and ealert. To make optimal use of CDC access services and encourage their activation, CDC is offering an incentive scheme for CDS Participants by which they can avail 20% refund on Sub-Account Annual Fee upon activating estatements and SMS alert facility for their clients. To be eligible for the refund, Participants are required to at least enroll 20 Sub-Accounts for estatement as well as SMS Alert Facility (both for the same account) in a calendar month. The below mentioned example illustrates the scheme further: Participant Name Number of Sub-Accounts activated for e-statements & SMS Alert (both for the same Account) Annual Fees for Sub- Account Rs. 200/- 20% Refund Participant A 19 Rs. 3,800 Zero Participant B 20 Rs. 4,000 Rs. 800 Participant C 100 Rs. 20,000 Rs. 4,000 This is an ongoing offer for the year Any further information regarding this incentive scheme can be obtained from CDC's toll free number (CDCPL) or by writing at info@cdcpak.com. Note: The refund offer is for one time only.

4 2 Pakistan-India Capital Market Regulators agree on Capacity Building [Delegation visits India under the banner of Aman ki Asha ] In December 2011, a capital market delegation from Pakistan visited India under Aman Ki Asha (Hope for Peace) initiative in coordination with the South Asian Federation of Exchanges (SAFE). The visit was targeted towards exchanging views with the Indian Capital Market representatives to learn about each other's markets and explore avenues for future cooperation. The delegates discussed many areas such as investors' protection and education, capacity building, IPO reforms, SME listing and market operations for which area-wise plans for enhancing sustained cooperation can be developed. The delegation from Pakistan visited Securities and Exchange Board of India as well as the largest stock exchange of Indiathe National Stock Exchange. They were briefed by senior officials about the workings of these institutions. The delegation was apprised about the progress made by the Indian financial sector and how India has created world class capital market institutions by focusing on market outreach through advanced IT and a home-grown model of market discipline and investor protection. A member of the delegation, Mr. Muhammad Hanif Jakhura, CEO - CDC Pakistan stated that the visit has highlighted the role of cross border investments in sensitizing the populations of each other's countries so as to enable them to start viewing each other as friendly asset classes. The delegation was unanimous that the mood of the entire visit had been that both sides remain willing to upscale the level of cooperation and to interlink both markets as part of expanding the global outreach of their domestic markets. The Aman ki Asha is the initiative of the two largest media groups of both the countries-the Times of India and the Jang/Geo group of Pakistan. The purpose of AKA initiative is to bring together people from various social and commercial backgrounds so as to help formulate a private sector policy for sustainable peace and cooperation between both the countries. The visiting delegation of Pakistan Capital Market Regulators and their spouses at the Wagah border.

5 3 becomes a subsidiary of CDC IT Consultancy & Implementation Services ITMINDS, the technology services arm of CDC has now become its wholly owned subsidiary. Launched in early 2009, ITMINDS was established with a background of the vast experience of CDC s multi-talented and skilled IT human resource coupled with state-of-the-art IT based systems and the Company s reputation of benchmarking quality excellence standards in the services industry. ITMINDS offers Information Technology based consultancy, implementation, training and support to small, medium and large scale organizations across the corporate sector. Within a short period of its inception, ITMINDS has been able to win strategic projects for providing technology consultancy and implementation services as well as training to a variety of esteemed institutes across the country. ITMINDS is a Microsoft Gold Certified and IBM Premium Business Partner offering the following diversified portfolio of services: IT Advisory Services covering IT Services Management, IT & Information Security, Business Continuity and Disaster Recovery End to End Technology Implementation Services of a broad range of Microsoft Solutions Consultancy and Implementation of IT Services Management and Information Security using IBM Tivoli Platform Java and.net based Application Development & Testing Services Training and Ongoing IT Support Services ITMINDS is destined to become the next market leader for premier technology services and solutions. With the novel use of technologies and expertise, ITMINDS is all equipped to deliver high quality solutions in the areas of IT automation, compliance, security and management. 4 ISO Second Annual Surveillance Audit Cleared In October 2009, CDC depository operations were certified against internationally acclaimed information security standard ISO/IEC 27001:2005, making it the first organization in Pakistani capital market to achieve this certification. As the certification is followed by annual surveillance audits, SGS Pakistan conducted the ISMS surveillance audit in November The audit team conducted a process-based audit focusing on significant aspects/risks/objectives required by the standard(s). The audit method used was based upon interviews, observation of activities and review of documents and records. It was concluded by SGS Pakistan that CDC has established and maintained its management system in line with the requirement of the standard and its ISO certification will be continued for

6 The scope of this certification covers the entire depository operations; meaning that all vital functions like IT, Finance, Legal, Operations, Marketing, Customer Services, Product Development, HR, Administration and Internal Audit come under the umbrella. Even today while fourteen organizations in Pakistan have been certified for adopting ISO as an information security management system standard, only a few have certified it end to end for their entire business operations. For CDC, internally, it demonstrates management commitment and focus to safeguard the information critical to functioning of entire capital market. Externally, it gives assurance to all our clients that their assets are well protected by a reliable organization that keeps itself abreast with internationally recognized best practices of the information age and operates with a well-established information security management system. 5 CDC participates in Seminar on Capital Market Reforms and Future Outlook An awareness session on Capital Market Reforms and Future Outlook was organized by the Institute of Cost and Management Accountants of Pakistan (ICMAP), Islamabad Campus, on October 19, Mr. Aftab Ahmed Diwan, Chief Operating Officer - CDC, while speaking at the seminar, highlighted CDC's role in enhancing and promoting the electronic book-entry securities culture with transparent and modernized mechanism in the Capital Market of Pakistan. Mr. Diwan also delivered a comprehensive presentation that explained CDS functionalities, scope and working utilizing state-of-the-art information technology platform. (From L to R): Mr. Aftab Ahmed Diwan, COO-CDC, Mr. Abdul Khalil, Chairman ICMAP Islamabad Campus and Mr. Muhammad Akram Zaki, Senator and senior diplomat are seen at the seminar. 6 Convenience that Rewards - Free of Cost SMS and estatement Refund for Investor Account Holders Free-of-Cost SMS CDC access - SMS, which was provided against a charge of Rs. 25 per month to Investor Account Holders, will now be provided completely free-of-cost. IAS Account Holders who have not provided CDC their mobile numbers are requested to do so to receive these free alerts. For those IAS Account Holders who have already activated this service, the charge of Rs. 25 per month will be waived off from March The service provides real time alerts on mobile phone regarding activities in Investor Account, such as transfers, pledge, corporate actions, etc. The list of events / alerts is available on CDC's website

7 Opt for estatements to Avail a Refund of Rs. 100* on Investor Account Annual Fee CDC is also offering an incentive scheme whereby Investor Account Holders can avail a Refund of Rs. 100 on their Investor Account Annual Fee upon activation of the estatement facility, which will be credited directly in their Investor Account. The estatement service provides free-of-cost Account Balance Statements in their inbox on a monthly basis. Investor Account Holders may opt for estatements by sending a written request mentioning their address to CDC or by visiting any CDC branch office and filling out an Account Updation Form. This is a limited time offer effective from January 01 to June 30, CDC to provide Trustee & Custodial Services to 5 more Funds of Pakistan's Leading AMCs In the fourth quarter of 2011 (Oct-Dec), CDC's Trustee & Custodial Services signed 5 Trust Deeds with Mutual Funds managed by Pakistan's leading Asset Management Companies. Following are the details of the signings: 1. UBL Principal Protected Fund-I: UBL Fund Managers Limited signed a Trust Deed with CDC on October 06, ABL Government Securities Fund: ABL Asset Management Limited signed a Trust Deed with CDC on November 01, &4. Askari Equity Fund and Askari Sovereign Yield Enhancer Fund: Askari Investment Management Limited signed two Trust Deeds with CDC on November 17 and December 09, First Habib Islamic Balanced Fund: HBL Asset Management Company Limited signed a trust deed with CDC on November 24, Sitting (From 2nd left): Mr. Abdul Samad, Head of Trustee and Custodial Services-Unit II, CDC, Mr. Aftab Ahmed Diwan, COO-CDC and Mr. Mir Mohammad Ali, CEO-UBL Fund Managers Limited are seen at the trust deed signing ceremony of UBL Principal Protected Fund I. Mr. Atiqur Rehman, Head of Trustee and Custodial Services-Unit I, CDC (Standing 3rd left) is also present. (From 2nd left): Mr. Iqleem uz Zaman, AGM, Trustee and Custodial Services-Unit II, CDC, Mr. Zeeshan Quddos, CFO-Askari Investment Management Limited, Mr. Tariq Siddiqui, CEO-Askari Investment Management Limited, Mr. Aftab Ahmed Diwan, COO-CDC and Mr. Abdul Samad, Head of Trustee and Custodial Services-Unit II are seen at the trust deed signing ceremony of Askari Equity Fund. 8 CDC Share Registrar Services expands further CDC's Share Registrar Services further expanded its portfolio by signing agreements in the Oct-Dec 2011 quarter with Lucky Energy and Standard Chartered (Pakistan) Bank for its Ordinary Shares and TFCs. With the new signings, the tally of companies with CDC SRS has increased to 46.

8 9 Reason Codes Training Sessions Transparency is one of the core values at CDC and therefore has always been an integral part of procedures and processes. In this context, CDC has further revised the Reason Codes for clarity and has also added codes to bring further transparency in securities transactions. Moreover, like in the case of Inter Participant Free Delivery transactions, only transactions pertaining to the relevant reason code will be allowed for Intra Account Movement transaction as well. Hence it is important that Participants make correct use of reason codes while making Intra and Inter Account Free Delivery (FD) transactions in the CDS. Consequently, effective December 12, 2011, the mechanism for usage of Reason Codes is in place and all Inter & Intra Account Movements Mr. Faisal Parekh, Deputy Manager, Marketing & Customer Support Services-CDC delivering the training presentation on Reason Codes at The Karachi Stock Exchange Auditorium. are being executed on the basis of the newly developed mechanism, further minimizing the chances of error during execution of FD transactions. In this regard, information and awareness sessions on the planned changes in CDS were conducted in Karachi, Lahore and Islamabad at the respective exchanges. The updated User Manual & Procedures have been placed on the CDC Corporate Website for information and ready reference. 10 CDC Customer Focused Initiatives - CDC access - IVR ( ) CDC provides account information to both Sub-Account Holders and Investor Account Holders through CDC access - IVR, a round-the-clock Interactive Voice Response system supported by a state-of-the-art call center, toll free number and dedicated customer support staff. The IVR service is available 24/7 while the dedicated customer relationship representatives remain available for assistance during office hours (9am to 6pm PST - Monday to Friday). Which information is provided through CDC access IVR? n Balance of a specific security n Balance of last three active securities n Balance of all securities n Account Activity Report n Cash Balance n Cash Activity Report n Requisition of Transaction Order (T.O.) Book n Change of contact numbers

9 How to activate your CDC access IVR Account? Sub-Account Holders can contact their respective Participant (stock broker) to get this service activated. Investor Account Holders can provide required details in the Investor Account Opening Form OR submit completely filled CDC access Registration Form duly signed by the authorized signatory(ies) at the IAS Front Desk at CDC Office where they are maintaining their Investor Account. The Registration Form can be downloaded from the website or obtained from IAS Front Desk at CDC offices. IVR account is activated within 24 hours of the receipt of Investor Account Opening Form OR CDC access Registration Form. Before submitting the form, you need to generate your T-PIN by calling (or for overseas callers). After selecting the language preference, press 1 for self service. Enter your CDC Relationship Number. Your 4 digit T-PIN will be generated. You would be required to provide your CDC Relationship Number and T-PIN to use the CDC access IVR service. What is Relationship Number? Your Relationship Number is the combination of Investor Account Services ID and your Investor Account Number Prefix would remain the same for all Investor Account Holders for IAS Karachi for IAS Lahore & Faisalabad for IAS Islamabad Investor Account Number Leading zeros should be put in before Account Number e.g. A/c #232 would be and likewise 11 CDS UPDATES 1. Revised Reporting Schedule [October 14, 2011] Issuers and R/TAs were informed that in accordance of Government of Pakistan's announcement of Saturday as a holiday, CDS will not be available on Saturdays. Resultantly, the Beneficial Owners Report (in accordance with Chapter 12 of the CDC Regulations) is now available to the respective Issuers / R/TAs of the securities with their Book Closure in process as per the following revised schedule:

10 Reporting Day as per previous schedule Saturday Monday Tuesday Revised schedule for download / printing SBD Monday Tuesday Wednesday 2. 18th Amendment in the Constitution of Pakistan [December 27, 2011] With reference to the 18th Amendment in the Constitution of Pakistan, Zakat collection has now been transferred to the Provincial level. Consequently, State Bank of Pakistan (SBP) has now made it mandatory for Issuers of Securities to deduct Zakat and provide details of its collection to SBP on Province wise basis. In this regard, the field for Province name was introduced by CDC in the Mailing & Permanent Address Field in CDS in June Therefore, accounts opened earlier than the said date do not reflect Province name in the Sub-Accounts maintained by CDS Participants. In view of the above and in the best interest of all concerned stakeholders, CDS Participants are requested to update/insert Province name in CDS on behalf of their respective Sub-Account Holders in the Mailing & Permanent Address fields under Account Setup Details. 12 NOTICE BOARD Gazette Notification CDCPL Regulations relating to the following matters have been amended and/or published in the official Gazette of Pakistan: Circular: October 20, 2011 Amendments in CDCPL Regulations and Tariff relating to: i. Effects of Suspension of CDS Eligibility of Securities due to Suspension of Trading at the Stock Exchanges ii. Bonds Automated Trading System iii. Handling of Specie Dividend in Central Depository System (including new Tariff) iv. Sending of Notice of Suspension/Revocation of CDS Eligibility of Securities An updated copy of CDC Regulations, Schedule of Fees & Deposits and Procedures (pertaining to specie dividend) has been made available on CDC's corporate website (

11 Statistical Highlights Securities Inducted into CDS Sr.# Security Symbol NAFAGSLFO OLPLTFC5 ABLCFO SMBLTFC EMPPLA EFSCPL YTML JVDCNVCPS Securities Delisted from CDS Sr.# Security Symbol SLLTFC TCDL HBSMLSC CTMLTFC PHLPPTFC PHLPPTFC2 PHLPPTFC3 PHLPPTFC4 LESCSC IESCLTFC FESCTFC GEPCLTFC TPLTFC KSEWLSC KSEWLSC2 WTLTFC2 Security Name Nafa Government Securities Liquid Fund Orix Leasing Pakistan Limited TFC (2nd Issue) ABL Cash Fund Summit Bank Limited TFC ( ) EMP PPIC Limited - Class 'A' Engro Foods Supply Chain (Private) Limited Yunus Textile Mills Limited Javedan Corporation Ltd.-12% Cum, N.Vot, Conv&Red Pref. Shares Security Name Securities Declared Eligible for CDS SME Leasing Limited TFC Tricon Developers Limited Haq Bahu Sugar Mills (Pvt.) Limited Sukuk Certificates The Crescent Textile Mills Limited TFC Power Holding (Pvt.) Limited - TFC Power Holding (Pvt.) Limited - TFC (2nd Issue) Power Holding (Pvt.) Limited - TFC (3rd Issue) Power Holding (Pvt.) Limited - TFC (4th Issue) Lahore Electric Supply Company Ltd. - Sukuk Certificates Islamabad Electric Supply Company Ltd. - TFC Faisalabad Electric Supply Company Ltd. - TFC Gujranwala Electric Power Company Ltd. - TFC TPL Trakker Limited - TFC Karachi Shipyard & Engineering Works Ltd. - Sukuk Certificates Karachi Shipyard & Engineering Works Ltd. Sukuk Certificates No.2 Worldcall Telecom Limited TFC ( ) Security Type Open End Units Debt Instrument Open End Units Debt Instrument Ordinary Shares Ordinary Shares Ordinary Shares Preference Shares Delisting Date 14-Oct 19-Oct 24-Oct 27-Oct 10-Nov 10-Nov 10-Nov 10-Nov 10-Nov 10-Nov 10-Nov 10-Nov 11-Nov 29-Nov 29-Nov 22-Dec Live Date 18-Oct 19-Oct 20-Oct 21-Oct 22-Oct 23-Oct 24-Oct 25-Oct ISIN PK PK PK PK PK PK PK PK PK PK PK PK PK PK PK PK Sr.# Security Name Security Type Notice Date Eligibility Date Summit Bank Limited - TFC ( ) EMP PPIC - Class A Pak Oman Government Securities Fund Agritech Limited - Preference Shares Askari Bank Limited - PPTFC EMP PPIC - Class B Agritech Limited - PPTFC (4th Issue) Agritech Limited - PPTFC (5th Issue) Foods Supply Chain (Private) Limited Yunus Textile Mills Limited Javedan Corporation Limited - Preference Shares Debt Instrument Ordinary Shares Open End Fund Preference Shares Debt Instrument Ordinary Shares Debt Instrument Debt Instrument Ordinary Shares Ordinary Shares Preference Shares 20-Oct 21-Nov 1-Dec 2-Dec 19-Dec 20-Dec 20-Dec 20-Dec 21-Dec 23-Dec 28-Dec 24-Oct 23-Nov 2-Dec 7-Dec 21-Dec 22-Dec 22-Dec 22-Dec 22-Dec 26-Dec 29-Dec

12 Corporate Actions Right Issue Sr.# Security Symbol FNEL THPPL RUBY KASBB ASIC KESC Security Name First National Equities Limited Thatta Power (Pvt.) Limited Ruby Textile Mills Limited KASB Bank Limited Asia Insurance Company Limited Karachi Electric Supply Company Limited Date Credited 7-Oct 3-Nov 21-Nov 9-Dec 13-Dec 29-Dec Bonus Shares Sr.# Security Symbol FEROZ PPL AZEFUH PKGI RICL THALL SSIC CDC SURC SNAI NBF MARI NOPK NOPKNV MUREB AHCL SNGPL SEARL ARM SSGC GATM FZCM SANE EWIC SNBL AZEFUH FABL Security Name Ferozsons Laboratories Limited Pakistan Petroleum Limited Allianz EFU Health Insurance Limited The Pakistan General Insurance Company Limited Reliance Insurance Company Limited Thal Limited Silver Star Insurance Company Limited Central Depository Company of Pakistan Limited Suraj Cotton Mills Limited Sana Industries Limited Namco Balance Fund Mari Gas Company Limited Noon Pakistan Limited Noon Pakistan Limited - Non Voting Ordinary Shares Murree Brewery Company Limited Arif Habib Corporation Limited Sui Northern Gas Company Limited Searle Pakistan Limited Allied Rental Modaraba Sui Southern Gas Company Limited Gul Ahmed Textile Mills Limited Fazal Cloth Mills Limited Salman Noman Enterprises Limited East West Insurance Company Limited Soneri Bank Limited Allianz EFU Health Insurance Limited Faysal Bank Limited Rate of Bonus Issue 15% 10% % 9.09% 12.50% 20% 5% 30% 10% 25% 8% 25% 10% 10% 10% 10% 5% 10% 25% 5% 100% 20.5% 7% 10% 12.5% % 12.5% Date Credited 7-Oct 7-Oct 11-Oct 11-Oct 20-Oct 26-Oct 26-Oct 10-Nov 14-Nov 15-Nov 17-Nov 18-Nov 21-Nov 21-Nov 18-Nov 18-Nov 21-Nov 23-Nov 24-Nov 25-Nov 25-Nov 29-Nov 29-Nov 7-Dec 7-Dec 7-Dec 12-Dec

13 New Issue Sr.# Security Symbol ENGROTFC2 OLPLTFC5 ENGROTFC2 SMBLTFC Security Name Engro Corporation Limited TFC ( ) Orix Leasing Pakistan Limited TFC (2nd Issue) Engro Corporation Limited TFC ( ) Summit Bank Limited - TFC ( ) Date Credited 1-Oct 19-Oct 19-Oct 17-Nov Change of Registrar / Transfer Agent (R/TA) Sr.# Security Symbol Security Name Previous R/TA New R/TA 1 GATI Gatron (Industries) Limited Self C & K Management Associates (Pvt.) Limited Change of Security Name Sr.# Old Name (From) BOC Pakistan Limited New Jubilee Insurance Company Limited New Jubilee Life Insurance Company Limited New Name (To) Linde Pakistan Limited Jubilee General Insurance Company Limited Jubilee Life Insurance Company Limited Further Issue Sr.# Security Symbol EFOODS JSBL EFOODS EPQL EFOODS EPQL EPQL EFOODS JSBL JVDCNVCPS EPQL EFOODS Security Name Engro Foods Limited JS Bank Limited Engro Foods Limited Engro Powergen Qadirpur Limited Engro Foods Limited Engro Powergen Qadirpur Limited Engro Powergen Qadirpur Limited Engro Foods Limited JS Bank Limited Javedan Corporation Limited - 12% Cum, N.Vot, Conv&Red Pref. Shares Engro Powergen Qadirpur Limited Engro Foods Limited Date Credited 13-Oct 20-Oct 25-Oct 4-Nov 14-Nov 24-Nov 8-Dec 14-Dec 20-Dec 29-Dec 29-Dec 30-Dec

14 Central Depository System (CDS) as of December 31, 2011 CDS Elements 754 Securities (Issuer) 629 Participants/Account Holders 99 Eligible Pledgees Breakup of Securities in CDS 587 Ordinary Shares 117 Sukuk & Term Finance Certificates (TFCs) 3 Bonds 32 Units of Open-End Mutual Funds 15 Preference Shares Transactions handled through CDS No. of Transactions Volume (in Billion) ,126 Securities Deposit ,790 FD Inter-Participant FD Intra-Account 67, Pledge 32, Securities Withdrawal

15 Investor Account Services (IAS) as of December 31, 2011 Corporate Investor Accounts Individual Investor Accounts 955 Karachi 210 Lahore 7, Islamabad 5,019 37,337 Number of Accounts Number of Securities (in Bil) 51, Activations (for IAS Customers) as of December 31, 2011 No. of IAS A/C Activation of IVR Activation of Web 51,343 8,512 17,022 Activation of SMS 649

16 KSE & CDS Summary as of December 31, 2011 Listed Companies at KSE Listed Capital at KSE (Rs. in Billion) No. of Shares in CDS (in Billion) Units of Open-End Funds in CDS (in Million) Units of TFCs, Sukuks & Bonds in CDS (in Million) Market Capitalization at KSE (Rs. in Billion) Market Capitalization of Shares in CDS (Rs. in Billion) Percentage of Shares in CDS w.r.t. Share Capital*. * Excluding GoP holding 638 1, , , % Shares traded at KSE during last six months Month July August September October November December Turnover of Shares Ready (No. in Million) 1, , , , , , Future Contract (No. in Million) KSE 100 Index during the last six months Market Cap. (Rs. in Million) 3,220, ,934, ,103, ,098, ,003, ,945, Source: KSE Quotation 12,500 12,000 11,500 11,000 10,500 10,000 9,500 12,190 11,762 11,869 11,533 11,348 11,071 July August September October November December World Market Indices Index BSE SENSEX S&P/ TSX Composite FTSE 100 (London) NIKKEI 225 (Tokyo) DAX (Frankfurt) CAC 40 (Paris) ALL ORDINARIES HANG SENG (Hong Kong) Value as on December 31, , , , , , , , , Source: Yahoo Finance

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19 The Custodian Slate

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21 The Custodian Slate

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23 The Custodian Slate

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25 The Custodian Slate Prefix would remain the same for all Investor Account Holders for IAS Karachi for IAS Lahore & Faisalabad for IAS Islamabad Investor Account Number Leading zeros should be put in before Account Number e.g. A/c #232 would be and likewise 11

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