Central Depository Company of Pakistan Limited Head Office: CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 Ref. No. CDC/LCR/N/11/2017 August 29, 2017 Notification No. 11 of 2017 Sub: Proposed revised amendments in the CDC Regulations in respect of Centralized Know Your Customer Organization To, The General Public, Further to our Notification No. 09 of 2017 bearing reference no. CDC/LCR/N/09/2017 dated July 18, 2017. This is to bring to the notice of general public that the Board of Directors of CDC has approved the attached revised amendments in the CDC Regulations in respect of Centralized Know Your Customer Organization ( CKO ) subject to approval of the Securities and Exchange Commission of Pakistan ( SECP ) under Section 35(1) of the Central Depositories Act, 1997 (XIX of 1997) read with Section 52(3) of the Securities Act, 2015 (III of 2015). As advised by SECP, the amendments in the CDC Regulations were further revised to incorporate the effects of CDC becoming an Authorized Intermediary and the merging of Sub-Account Opening Form with the Trading Account Opening Form. The combined form has been named as Customer Relationship Form ( CRF ). As required under Section 51(2) of the Securities Act, 2015 (III of 2015), CDC has placed such amendments along with CRF for soliciting public comments which may be submitted at comments@cdcpak.com within 7 days of this notification i.e. on or before Monday, September 04, 2017. Regards, -Sd- Badiuddin Akber Chief Compliance & Risk Officer UAN: 111-111-500 Email: info@cdcpak.com Help Desk: 0800-23275 Fax: (021) 34326036
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change # 1. 2.11.1 Authorization Authorization means the one-time fixed authorization as specifically set out in the Sub-Account Opening Form for Handling of any Bookentry Securities by a Participant on behalf of a Sub-Account Holder that are entered in the Sub-Account of such Sub-Account Holder for the purposes of: 2. 2.11.1 Does not exist Authorized Intermediary 3. 2.11.1 Does not exist Customer Relationship Form means the one-time fixed authorization as specifically set out in the Sub-Account Opening Form or, as the case may be, the Customer Relationship Form for Handling of any Bookentry Securities by a Participant on behalf of a Sub-Account Holder that are entered in the Sub-Account of such Sub-Account Holder for the purposes of: shall have the same meaning as ascribed thereto in the NCCPL Regulations; means a combination of Sub- Account Opening Form and the trading account opening form to be used for the purpose of opening of a Sub-Account and a trading account with a TRE certificate holder. Such form shall only be used by a Participant who is a TRE certificate holder and an Authorized Intermediary. A copy of the Customer Relationship Form, as prescribed by the Commission, shall form part of these Regulations; These changes are incidental to changes made in serial no. 3 below. To recognize the term defined in the NCCPL Regulations where certain Persons will be allowed to assume the role of Authorized Intermediary under CKO. To recognize the newly introduced merged SAOF and the Trading Form to be used by Participants who are TREC Holders of PSX and Authorized Intermediaries. 4. 2.11.1 Sub-Account Opening Form Sub-Account Opening Form It has been carried that the existing SAOF is only to be Comparative Statement - Amendments in respect of CKO Page 1 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change means a standardized form prescribed by the Commission to be signed by Sub- Account Holders for the purpose of opening of Sub-Accounts by the Participants in the CDS in the names of such Sub-Account Holders in accordance with these Regulations. A copy of the Sub-Account Opening Form, as prescribed by the Commission, shall form part of these Regulations; 5. 2.11.1 Does not exist KYC Application Form 6. 2.11.1 Does not exist KYC Database 7. 2.11.1 Does not exist KYC Information System ( KIS ) 8. 2.11.1 Does not exist Unique KYC Number ( UKN ) means a standardized form prescribed by the Commission to be signed by Sub-Account Holders for the purpose of opening of Sub- Accounts by the Participants (who are not Authorized Intermediaries) in the CDS in the names of such Sub-Account Holders in accordance with these Regulations. A copy of the Sub-Account Opening Form, as prescribed by the Commission, shall form part of these Regulations; shall have the same meaning as ascribed thereto in the NCCPL Regulations to be used (along with the relevant account opening form) by the Authorized Intermediaries for the purpose of opening of Sub- Accounts or, as the case may be, Investor Accounts in the CDS; shall have the same meaning as ascribed thereto in the NCCPL Regulations; shall have the same meaning as ascribed thereto in the NCCPL Regulations; shall have the same meaning as ascribed thereto in the NCCPL Regulations; used by Participants who are not Authorized Intermediaries, such as banks, financial institutions. To recognize the term defined in the NCCPL Regulations where Authorized Intermediary will submit KYC Application Form to NCCPL for verification of clients details. To recognize the term defined in the NCCPL Regulations where NCCPL will maintain and update the record and information of all clients maintaining subaccounts. To recognize the term defined in the NCCPL Regulations where all KYC Data of client will be stored on a system. To recognize the term defined in the NCCPL Regulations where UKN will be issued to the Clients whose verification has been completed. Comparative Statement - Amendments in respect of CKO Page 2 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change 9. 2.11.1 Does not exist CKO Regulations, means the National Clearing Company of Pakistan Limited New definition added as same will be used in the CDC 2017 Centralized Know Your Regulations with reference to Customer Regulations, 2017 CKO related matters. including all amendments and revisions thereof and any regulations made in substitution for the same with the prior concurrence of the Commission; 10. 2.11.1 Registration Details means: Registration Details means: These changes are incidental to changes made in serial no. 3 above. (a) in respect of an individual: (i) the name; (ii) the address; (iii) the residential status; (iv) the computerized national identity card number or, in case of a non-resident Pakistani, the national identity card number for over-seas Pakistanis or, in case of a foreigner, the passport details; (v) the occupation, (vi) the international bank account number (IBAN); and (vii) the local mobile number or, in case of a non-resident Pakistani or foreigner, the email address and phone number (optional), (a) in respect of an individual: (i) the name; (ii) the address; (iii) the residential status; (iv) the computerized national identity card number or, in case of a nonresident Pakistani, the national identity card number for over-seas Pakistanis or, in case of a foreigner, the passport details; (v) the occupation, (vi) the international bank account number (IBAN); and (vii) the local mobile number or, in case of a non-resident Pakistani or foreigner, the email address and phone number (optional), of the individual; (b) of the individual; in respect of a company or other (b) in respect of a company or other body corporate: (i) the name; Comparative Statement - Amendments in respect of CKO Page 3 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change body corporate: (i) the name; (ii) the UIN; (iii) the registered address; (iv) the residential status; (v) the shareholder category, (vi) the international bank account number (IBAN), (vii) the email address and the local mobile phone number of the contact person (optional); and (viii) National Tax Number (ii) (iii) (iv) (v) (vi) (vii) (viii) the UIN; the registered address; the residential status; the shareholder category, the international bank account number (IBAN), the email address and the local mobile phone number of the contact person (optional); and National Tax Number of the company or other body corporate, of the company or other body corporate, and includes such other information as may be required under the Sub-Account Opening Form; 11. 6.2.1 Subject to Regulation 6.2.2, a Participant may from time to time Transmit to the CDC, within the Designated Time, a Valid Sub- Account Opening Transaction to establish Sub-Accounts for his Sub-Account Holders under every Main Account established by CDC on behalf of the Participant pursuant to Regulation 6.1.1, provided that, CDC shall reject the Sub-Account Opening Transaction and Notify such rejection to the Participant, where: (a) the UIN of the concerned Sub- Account Holder has not been established by the Participant prior to Transmission of such Sub- Account Opening Transaction ; and includes such other information as may be required under the Sub-Account Opening Form or, as the case may be, the Customer Relationship Form and/or the KYC Application Form; Subject to Regulation 6.2.2, a Participant may from time to time Transmit to the CDC, within the Designated Time, a Valid Sub-Account Opening Transaction to establish Sub-Accounts for his Sub-Account Holders under every Main Account established by CDC on behalf of the Participant pursuant to Regulation 6.1.1, provided that, CDC shall reject the Sub-Account Opening Transaction and Notify such rejection to the Participant, where: (a) the UIN of the concerned Sub-Account Holder has not been established by the Participant prior to Transmission of such Sub-Account Opening Transaction ; Since subscription to SMS and ealerts / estatements services are becoming mandatory requirements, necessary changes have been made. Now only IVR and Web-based services are optional. Comparative Statement - Amendments in respect of CKO Page 4 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change (b) (c) the Participant has not subscribed to the mandatory service(s) under the CDC Access in respect of such Sub-Account as required under the Sub-Account Opening Form; and the Participant has not entered the Registration Details of the concerned Sub-Account Holder in the CDS. (b) (c) the Participant has not subscribed to the mandatory service(s) under the CDC Access in respect of such Sub- Account as has been required under the Sub-Account Opening Form by CDC or the Commission; and the Participant has not entered the Registration Details of the concerned Sub-Account Holder in the CDS. 12. 6.2.2 A Sub-Account of a Sub-Account Holder shall be established by a Participant only on the basis of Sub-Account Opening Form duly signed by or on behalf of such Sub- Account Holder. No other form or document whatsoever shall be used by a Participant for the purpose of establishment of a Sub- Account in the CDS. Provided that in case of establishment of an MF Sub-Account in the CDS, the relevant Tri-partite Agreement (as referred to in the NCCPL Regulations) pertaining to the Holder of such MF Sub-Account shall be used in place of Sub-Account Opening Form and the copy thereof shall be provided to CDC in accordance with the Procedures. A Sub-Account of a Sub-Account Holder shall be established by a Participant only on the basis of Sub-Account Opening Form duly signed by or on behalf of such Sub-Account Holder. No other form or document whatsoever shall be used by a Participant for the purpose of establishment of a Sub-Account in the CDS. Provided that where the Participant is an Authorized Intermediary, the Participant shall use the Customer Relationship Form and the KYC Application Form (in the manner prescribed under the CKO Regulations, 2017) for the purpose of opening of Sub-Account in the CDS. Provided further that in case of establishment of an MF Sub-Account in the CDS, the relevant Tri-partite Agreement (as referred to in the NCCPL Regulations) pertaining to the Holder of such MF Sub-Account shall be used in place of Sub-Account Opening Form or, as the case may be, the Customer Relationship Form and/or the KYC Application Form and the copy of such Tri-partite Agreement thereof shall be provided to CDC in accordance with the Procedures. It has been clarified that: a) opening of sub-account by non-broker Participant will use the existing SAOF whereas an Authorized Intermediary will use the Customer Relationship Form and the KYC form in place of SAOF. b) For opening of MF Sub- Account, only the relevant Tri-Partite Agreement will be used. Comparative Statement - Amendments in respect of CKO Page 5 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change 13. 6.2.3 A Participant shall not, under any A Participant shall not, under any These changes are circumstances, modify, alter, amend or make any change or changes in the Sub- Account Opening Form. CDC shall notify any changes made by the Commission or by the CDC with the prior approval of the Commission in the Sub-Account Opening Form at any time after coming into force of this Regulation 6.2, and such changes shall be deemed to have been included in the existing Sub-Account Opening Forms (in the form previously approved by the Commission) used by the Participants forthwith after giving of such notification by the CDC. circumstances, modify, alter, amend or make any change or changes in the Sub-Account Opening Form or, as the case may be, the Customer Relationship Form. CDC shall notify any changes made by the Commission or by the CDC with the prior approval of the Commission in the Sub-Account Opening Form or the Customer Relationship Form at any time after coming into force of this Regulation 6.2, and such changes shall be deemed to have been included in the existing Sub-Account Opening Forms or, as the case may be, the Customer Relationship Forms (in the form previously approved by the Commission) used by the Participants forthwith after giving of such notification by the CDC. incidental to changes made in serial no. 3 above. 14. 6.2.4 Each Sub-Account established by a Participant pursuant to Regulation 6.2.1 shall bear such Registration Details and other information of the Sub-Account Holder as are provided by the Sub-Account Holder in the Sub-Account Opening Form. Every Participant shall be responsible to ensure that the Registration Details and other information of each Sub-Account Holder specified by the Participant in the Sub-Account Opening Transaction Transmitted by him to establish a Sub-Account are correct and complete in every respect. 15. 6.2.5 Where the Registration Details and other information obtained by a Participant in the Sub-Account Opening Form are prima facie inaccurate or are otherwise incomplete, the Each Sub-Account established by a Participant pursuant to Regulation 6.2.1 shall bear such Registration Details and other information of the Sub-Account Holder as are provided by the Sub-Account Holder in the Sub-Account Opening Form or, as the case may be, the Customer Relationship Form and the KYC Application Form. Every Participant shall be responsible to ensure that the Registration Details and other information of each Sub-Account Holder specified by the Participant in the Sub-Account Opening Transaction Transmitted by him to the CDC to establish a Sub-Account are correct and complete in every respect. Where the Registration Details and other information obtained by a Participant in the Sub- Account Opening Form or, as the case may be, the Customer Relationship Form and the KYC These changes are incidental to changes made in serial no. 3 above. These changes are incidental to changes made in serial no. 3 above. Comparative Statement - Amendments in respect of CKO Page 6 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change Participant shall not Transmit the Sub-Account Opening Transaction to the CDC on the basis of such Registration Details and other information. Application Form are prima facie inaccurate or are otherwise incomplete, the Participant shall not Transmit the Sub-Account Opening Transaction to the CDC on the basis of such Registration Details and other information. 16. 6.2.7 If at any time a Participant is notified by any of his Sub-Account Holders of a change in the Registration Details or other information of that Sub-Account Holder, the Participant shall, subject to Regulation 15.5.1(h) and the Procedures: (a) (b) notify the change to the CDC; and ensure, in accordance with the Procedures, that the Sub-Account of the Sub-Account Holder reflects the change. If at any time a Participant is notified by any of his Sub-Account Holders of a change in the Registration Details or other information of that Sub-Account Holder, the Participant shall, subject to these Regulations, notify the change to the CDC and ensure that the Sub-Account of the Sub-Account Holder reflects the change. Provided that where the Participant is also an Authorized Intermediary, such Participant shall also comply with the requirements prescribed by the Clearing House under the NCCPL Regulations in relation thereto. 15.5.1(h) and the Procedures: (a) notify the change to the CDC; and (b) ensure, in accordance with the Procedures, that the Sub-Account of the Sub- Account Holder reflects the change. Provided further that where the Clearing House sends (through the KYC Information System) any change in the Registration Details or other information in respect of a Sub-Account maintained with an Authorized Intermediary, such Authorized Intermediary shall ensure that the change is forthwith reflected in the CDS in respect of such Sub-Account. Explanation: It is clarified that any change in the Registration Details or other information in respect of a Sub-Account sent by the Clearing House pursuant to the second proviso to this Provisions added with regards to change in the account details of subaccounts which will be made on the basis of information to be verified by NCCPL as CKO. Comparative Statement - Amendments in respect of CKO Page 7 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change Regulation 6.2.7 shall be deemed to have been sent with the prior authorization of the concerned Sub-Account Holder. 17. 6.4B.1 CDC shall, as of the End of Day on every Business Day, provide to the Clearing House the Sub-Accounts, House Accounts and Investor Accounts numbers of such Sub-Accounts, House Accounts and Investor Accounts as generated by the CDS for the purpose of tagging, in accordance with the NCCPL Regulations, of such numbers with the UINs of such Sub- Accounts, House Accounts and Investor Accounts. 18. 6.6.1 Notwithstanding anything to the contrary contained in these Regulations, CDC shall not be liable to any CDS Element or to any other person whatsoever for preparing and making available under these Regulations any Report, including, without prejudice to the generality of the foregoing, a Beneficial Owners Report, on the basis of and incorporating the Registration Details and/or other information supplied to CDC under these Regulations or otherwise in respect of Account Holders, Sub-Account Holders and of the persons who own Bookentry Securities entered in the Group Accounts of Participants. Every CDS Element shall indemnify CDC and its Where CDC is an Authorized Intermediary, then all references to Sub-Account, Sub-Account Holder and Participant in this Regulation 6.2.7 shall be construed as references to Investor- Account, Investor-Accountholder and CDC, respectively. CDC shall, as of the End of Day on every Business Day, provide to the Clearing House the Sub-Accounts, House Accounts and Investor Accounts numbers of such Sub- Accounts, House Accounts and Investor Accounts as generated by the CDS for the purpose of tagging, in accordance with the NCCPL Regulations, of such numbers with the UINs and/or UKN of such Sub-Accounts, House Accounts and Investor Accounts. Notwithstanding anything to the contrary contained in these Regulations, CDC shall not be responsible or liable to any CDS Element or to any other person whatsoever for preparing and making available under these Regulations any Report, including, without prejudice to the generality of the foregoing, a Beneficial Owners Report, on the basis of and incorporating the Registration Details and/or other information supplied to CDC under these Regulations or otherwise by the Account Holders, Participants and/or the Clearing House (hereinafter in this Regulation 6.6.1 collectively referred to as the Persons ) in respect of Account Holders, Participants, Sub-Account Holders and of the persons who own Book-entry Securities Incidental change made in light of CKO Regulations. It has been clarified that CDC will not be responsible for preparing and making available any report under the CDC Regulations on the basis of information provided to CDC by persons named in this Regulation. Comparative Statement - Amendments in respect of CKO Page 8 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change Directors, Officers, employees and agents and hold them harmless from and against any losses, damages, costs and expenses incurred or suffered by CDC or any of its Directors, Officers, employees and agents as a consequence of preparing and making available under these Regulations any Report based upon the Registration Details and/or other information supplied by such CDS Element. entered in the Group Accounts of Participants. Every CDS Element and Clearing House shall indemnify CDC and its Directors, Officers, employees and agents and hold them harmless from and against any losses, damages, costs and expenses incurred or suffered by CDC or any of its Directors, Officers, employees and agents as a consequence of preparing and making available under these Regulations any Report based upon the Registration Details and/or other information supplied by such CDS Element Persons. 19. 6.7.1 A Participant shall, in accordance with the Authorization and instructions as regards operation of a Sub-Account contained in the Sub-Account Opening Form, Handle the Book-entry Securities entered in the Sub- Account of its Sub-Account Holders only for the specific purposes as set out in the said Authorization. Provided that, where a Sub-Account is to be maintained and/or operated by an Attorney of the Sub-Account Holder, the Participant shall obtain an attested copy of duly signed and executed power of attorney issued by the relevant Sub-Account Holder and maintain proper documentary record of such instrument. 20. 6.7.3 Where, a Participant has not obtained the Sub-Account Opening Forms in respect of Sub-Account maintained by him in accordance with Regulation 6.2.6: (a) the Participant shall not Handle the Book-entry Securities owned by the A Participant shall, in accordance with the Authorization and instructions as regards operation of a Sub-Account contained in the Sub-Account Opening Form, or, as the case may be, the Customer Relationship Form, Handle the Book-entry Securities entered in the Sub-Account of its Sub-Account Holders only for the specific purposes as set out in the said Authorization. Provided that, where a Sub-Account is to be maintained and/or operated by an Attorney of the Sub-Account Holder, the Participant shall obtain an attested copy of duly signed and executed power of attorney issued by the relevant Sub-Account Holder and maintain proper documentary record of such instrument. Where, a Participant has not obtained the Sub- Account Opening Forms or, as the case may be, the Customer Relationship Form and/or the KYC Application Form in respect of Sub- Accounts maintained by him in accordance with Regulation 6.2.6: These changes are incidental to changes made in serial no. 3 above. Reference to CRF added where a Participant who is an Authorized Intermediary will be required to obtain CRF and the KYC Form instead of SAOF. Comparative Statement - Amendments in respect of CKO Page 9 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change (b) (c) Holders of such Sub-Accounts; where there is a nil Holding Balance in such Sub-Accounts, the Participant shall close the Sub- Accounts under prior written notice to the relevant Sub-Account Holders; in case of Holding Balance, the Participant shall provide the Sub- Account numbers, copies of CNICs and such other details as CDC may require with respect to such Sub- Accounts; (a) (b) (c) the Participant shall not Handle the Book-entry Securities owned by the Holders of such Sub-Accounts; where there is a nil Holding Balance in such Sub-Accounts, the Participant shall close the Sub-Accounts under prior written notice to the relevant Sub- Account Holders; in case of Holding Balance, the Participant shall provide the Sub- Account numbers, copies of CNICs and such other details as CDC may require with respect to such Sub-Accounts; (d) (e) upon receipt of details provided by the Participant under clause (c) above, CDC shall block the relevant Sub-Accounts where unblocking shall be allowed upon production of Sub-Account Opening Forms duly filled and signed by the relevant Sub-Account Holders; and during the blocking period, the relevant Sub-Account Holder may request CDC (on a format prescribed by CDC) through the concerned Participant for transfer of his Book-entry Securities held in such Sub-Account as portfolio transfer under Regulation 9.2.1(l) which request may be granted by CDC at its sole discretion. (d) (e) upon receipt of details provided by the Participant under clause (c) above, CDC shall block the relevant Sub- Accounts where unblocking shall be allowed upon production of Sub- Account Opening Forms or, as the case may be, the Customer Relationship Form and/or the KYC Application Form duly filled and signed by the relevant Sub-Account Holders; and during the blocking period, the relevant Sub-Account Holder may request CDC (on a format prescribed by CDC) through the concerned Participant for transfer of his Book-entry Securities held in such Sub-Account as portfolio transfer under Regulation 9.2.1(l) which request may be granted by CDC at its sole discretion. Provided that where CDC otherwise Provided that where CDC otherwise becomes Comparative Statement - Amendments in respect of CKO Page 10 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change becomes aware that Sub-Accounts are maintained by Participants without having Sub-Account Opening Forms, CDC shall block such Sub-Accounts under intimation to the relevant Participants where unblocking shall be subject to receipt of Sub-Account Opening Forms duly filled and signed by the relevant Sub-Account Holders. Provided further that, where CDC blocks any Sub-Account pursuant to the first proviso to this Regulation 6.7.3, the relevant Sub-Account Holder may, during the blocking period, request CDC (on a format prescribed by CDC) through the concerned Participant, for transfer of his Book-entry Securities held in such Sub-Account as portfolio transfer under Regulation 9.2.1(l) which request may be granted by CDC at its sole discretion. aware that Sub-Accounts are maintained by Participants without having Sub-Account Opening Forms or, as the case may be, the Customer Relationship Form and/or the KYC Application Form, CDC shall block such Sub- Accounts under intimation to the relevant Participants where unblocking shall be subject to receipt of Sub-Account Opening Forms or, as the case may be, the Customer Relationship Form and/or the KYC Application Form duly filled and signed by the relevant Sub-Account Holders. Provided further that, where CDC blocks any Sub-Account pursuant to the first proviso to this Regulation 6.7.3, the relevant Sub-Account Holder may, during the blocking period, request CDC (on a format prescribed by CDC) through the concerned Participant, for transfer of his Book-entry Securities held in such Sub-Account as portfolio transfer under Regulation 9.2.1(l) which request may be granted by CDC at its sole discretion. 21. 6.7.5 Does not exist The Clearing House may send instructions to the CDC for blocking and/or unblocking of Sub- Accounts or, as the case may be, Investor Accounts in the CDS after satisfaction of relevant provisions of the NCCPL Regulations. Provided that, no responsibility whatsoever shall lie on CDC for implementing such instructions. Provided further that, blocking of a Sub-Account and/or an Investor Account pursuant to this Regulation 6.7.5 shall not affect settlement of any outstanding net position in respect of such Sub-Account or the Investor Account at the This new Regulations seeks to allow CDC to implement the instructions of NCCPL for blocking / unblocking of subaccounts and Investor Accounts in the CDS on account of failure of KYC process. During the blocking period, pending settlement and new sell transactions will be allowed. Comparative Statement - Amendments in respect of CKO Page 11 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change Clearing House or, as the case may be, new market-based or an off-market Securities transaction (executed during the blocking period that results in debiting of any Book-entry Securities) in respect of such Sub-Account or the Investor Account to be settled through the Clearing House. 22. 9.3A.5 Subject to Regulation 6.7.2 and clause (ka) of Regulation 9.1.1 and the terms and conditions of the Sub-Account Opening Form, an Account Holder shall have the right to dispose of the Book-entry Securities held in a Sub-Account under his control for the purpose of recovery of any outstanding charges or losses payable to the Participant by the Holder of such Sub-Account including for the recovery of the payment against any underlying market purchase transactions made by the Participant on behalf of such Sub-Account Holder, provided that, the Account Holder shall comply with the requirements of Regulation 9.2A.1 at the time of exercising such right. 23. 9C.2.4 Subject to Regulation 9C.2.5, an MF Account Holder may establish MF Sub- Account(s) as part of its Account Family under MF ID, and for this purpose, notwithstanding anything to the contrary contained in these Regulations, the requirement of Sub-Account Opening Form shall be dispensed with. 24. 12A.3.1 The Investor-Accountholder shall complete, sign and submit the Investor Account Subject to Regulation 6.7.2 and clause (ka) of Regulation 9.1.1 and the terms and conditions of the Sub-Account Opening Form or, as the case may be, the Customer Relationship Form, a an Account Holder Participant shall have the right to dispose of the Book-entry Securities held in a Sub-Account under his control for the purpose of recovery of any outstanding charges or losses payable to the Participant by the Holder of such Sub-Account including for the recovery of the payment against any underlying market purchase transactions made by the Participant on behalf of such Sub-Account Holder, provided that, the Account HolderParticipant shall comply with the requirements of Regulation 9.2A.1 at the time of exercising such right. Subject to Regulation 9C.2.5, an MF Account Holder may establish MF Sub-Account(s) as part of its Account Family under MF ID, and for this purpose, notwithstanding anything to the contrary contained in these Regulations, the requirement of Sub-Account Opening Form or, as the case may be, the Customer Relationship Form and/or the KYC Application Form, shall be dispensed with. The Investor-Accountholder shall complete, sign and submit the Investor Account Opening 1. Reference to CRF added for clarification. 2. The term Account Holder replaced with the term Participant to reflect the correct position. Reference to CRF and KYC Form added for clarification. Reference to KYC Form added as same will also be Comparative Statement - Amendments in respect of CKO Page 12 of 13
COMPARATIVE STATEMENT - AMENDMENTS IN THE CDC REGULATIONS RELATING TO CENTRALIZED KNOW YOUR CUSTOMER ORGANIZATION S. # Reg. # Existing Regulations Regulations Proposed by CDC Rationale for change Opening Form to CDC for opening of the Investor Account. The Investor Account Opening Form shall be accompanied with such documents as are listed therein. CDC shall have the right not to accept, without assigning any reasons whatsoever, any request for opening of the Investor Account. Form and the KYC Application Form to CDC for opening of the Investor Account. The Investor Account Opening Form shall be accompanied with such documents as are listed therein. CDC shall have the right not to accept, without assigning any reasons whatsoever, any request for opening of the Investor Account. required for opening of Investor Account. 25. 12A.3.2 Fees and other charges as are prescribed by CDC, and approved by the Commission, from time to time for opening of the Investor Account shall be paid to CDC together with the Investor Account Opening Form. 26. 15.1.1(b)(vi) the Commission, a court or any other competent authority directs CDC to impose Restriction on or, suspend or terminate, the admission of the Account Holder to the CDS; and Fees and other charges as are prescribed by CDC, and approved by the Commission, from time to time for opening of the Investor Account shall be paid to CDC together with the Investor Account Opening Form and the KYC Application Form. the Commission, a court or any other competent authority directs CDC to impose Restriction on or, suspend or terminate, the admission of the Account Holder to the CDS; and 27. 15.1.1(b)(vii) Does not exist the Clearing House restricts, suspends or terminates the Account Holder, who is an Authorized Intermediary, provided that no action shall be required under these Regulations where CDC is the Authorized Intermediary; and 28. 15.4.2 Does not exist If the CDC imposes a Restriction on the admission to the CDS of a non-compliant Account Holder on occurrence of an event specified in Regulation 15.1.1(b)(vii), CDC shall, during the Restriction period, reject any Valid Sub-Account Opening Transaction Transmitted by the Account Holder to the CDC. Reference to KYC Form added as same will also be required for opening of Investor Account. Incidental change due to insertion of new clause 15.1.1(b)(vii) below. Please refer rationale for amendment no. 28 below Enabling clause inserted where CDC will restrict an Authorized Intermediary for opening new sub-accounts in the CDS where NCCPL restricts, suspends or terminates the Authorized Intermediary for any noncompliance of CKO/NCCPL Regulations. Comparative Statement - Amendments in respect of CKO Page 13 of 13
Place Logo Here! Nature of Account Single Joint Name of Entity (Participant/TRE Certificate Holder) [Registered Address] CUSTOMER RELATIONSHIP FORM FOR INDIVIDUALS (PLEASE ALSO FILL KYC APPLICATION FORM for Mian and Joint Applicants) (Please use BLOCK LETTERS to fill the form) I/We hereby apply for opening of my/our following account [please tick ( ) the appropriate box(es)] with [insert name of the Participant/TRE Certificate Holder]. My/our particulars are given as under: Trading Account [Opening of Account for trading only] Sub-Account [Opening of Account for custody and settlement] Investor Account [Opening of Account for custody and settlement] (only applicable if Direct Settlement Service is selected in section C) Trading Account and Sub-Account [Opening of Account for trading, custody and settlement] A. REGISTRATION (AND OTHER) DETAILS OF MAIN APPLICANT (The information should be same as provided in the KYC Application Form) 1. Full name of Applicant (As per CNIC/SNIC/NICOP/ARC/POC/Passport) MR. / MRS. / MS. UKN No. 2. CNIC SNIC NICOP ARC POC Passport No: [Please tick ( ) appropriate box] 3. Expiry date of CNIC//SNIC/NICOP/ARC/POC/ Passport: Please use the information as provided in the KYC Application Form and enter the same in the CDS 34. Details of Contact Person: [Note: Contact Person shall not be the person other than the Main Applicant, any one of the Joint Applicant or their Attorney. However, Attorney shall not be a Participant/TRE Certificate Holder or its Director or Representative. Where Contact Person is the Main Applicant or any of the Joint Applicant, please only provide the name in (a) below and use the contact details of such Contact Person as provide in the KYC Application Form and enter the same in the CDS. In case of Attorney, please provide details in (a) to (h) below] (a) Name: MR. / MRS. / MS. (b) Address: (c) CNIC SNIC NICOP ARC POC Passport No. [Please tick ( ) appropriate box] (d) Expiry date of CNIC//SNIC/NICOP/ARC/POC: D D / M M / Y Y Y Y (e) Passport details: Passport Number: Place of Issue: (For a foreigner or a Pakistani origin) Date of Issue: Date of Expiry: (f) Contact No: Land Line No.: Local Mobile No.(*) (g) Fax: (optional) (h) Email:(*) *Where the Contact Person is resident Pakistani, local mobile number shall be provided for the purpose of subscription to SMS as a mandatory requirement. Where the Contact Person is a non-resident or a foreigner, email address shall be provided for ealert / estatement from CDC and E-Alerts from NCCPL as a mandatory requirement. In case the Contact Person is an Attorney, both the Main Applicant and the Attorney shall receive such services. This information will also be used where any other service is subscribed under the CDC access. A1. The Applicant(s) may also specify a local mobile number or an email address of any other person exclusively for the purpose of receiving SMS alerts, ealerts, estatements services from CDC/NCCPL/PSX by providing the details in columns (a) to (e) below. Sub-Account Holder shall also provide an authority letter as prescribed by CDC. (a) Name: MR. / MRS. / MS. (b) CNIC SNIC NICOP ARC POC Passport No. [Please tick ( ) appropriate box] (c) Local Mobile No: e) Relationship with the Main Applicant: [Please tick ( ) appropriate box] (d) Email address: Spouse Father Mother Brother Sister Son Daughter B. REGISTRATION (AND OTHER) DETAILS OF THE JOINT APPLICANT(S) (The information should be same as provided in the KYC Application Form) JOINT APPLICANT NO. 1 1. Full name of Applicant (As per CNIC/SNIC/NICOP/ARC/POC/Passport) MR. / MRS. / MS. UKN No. 2. CNIC SNIC NICOP ARC POC Passport No: [Please tick ( ) appropriate box] 3. Expiry date of CNIC//SNIC/NICOP/ARC/POC/Passport: For official use of the Participant/TRE Certificate Holder only Application Form No. TRE Certificate No. Broker Registration No. CDS Participant ID Sub-Account No. Trading Account No. (Back-office ID) (if applicable) Please use the information as provided in the KYC Application Form and enter the same in the CDS JOINT APPLICANT NO. 2 1. Full name of Applicant (As per CNIC/SNIC/NICOP/ARC/POC/Passport) MR. / MRS. / MS. UKN No. 2. CNIC SNIC NICOP ARC POC Passport No: [Please tick ( ) appropriate box]
3. Expiry date of CNIC//SNIC/NICOP/ARC/POC/Passport: Please use the information as provided in the KYC Application Form and enter the same in the CDS JOINT APPLICANT NO. 3 1. Full name of Applicant (As per CNIC/SNIC/NICOP/ARC/POC/Passport) MR. / MRS. / MS. UKN No. 2. CNIC SNIC NICOP ARC POC Passport No: [Please tick ( ) appropriate box] 3. Expiry date of CNIC//SNIC/NICOP/ARC/POC/Passport: Please use the information as provided in the KYC Application Form and enter the same in the CDS C. CUSTODY, CLEARING AND SETTLEMENT AGENT National Custodial Service (NCCPL) [sub-account shall be opened and maintained with NCCPL] Primary Service Provider Direct Settlement Service (CDC) [Investor Account shall be opened and maintained with CDC] Professional Clearing Member (PCM): please specify [sub-account shall be opened and maintained with (name of PCM) ] Investors not wishing to use one of the Primary Service Providers must strike out the preceding field, sign here and choose one of the Other Service Providers. Other Service Provider Securities broker (Trading & Self-Clearing) Securities Broker (Other Trading and Clearing): please specify DC. OTHER ACCOUNT LEVEL INFORMATION 1. Dividend Mandate [Please tick ( ) the appropriate box] Yes No If yes, please provide following details of Main Applicant or any of the Joint Applicant with reference to Dividend Mandate: 1. Bank Details (Please provide following details of eitherthe Main Applicant or any of the Joint Applicant:) (Do not provide bank details of other person / third party as same will not be acceptable) (a) Account Title: (b) Account No/ IBAN No.: (c) Name of Bank: Please use the information as provided in the KYC Application Form and enter the same in the CDS (d) Branch: (e) Address: 2. Residential Status [Please tick ( ) the appropriate boxes] Resident Non-Resident Repatriable Non-Repatriable Pakistani Foreign National 3. Shareholder s Category: INDIVIDUAL 4. Zakat Status: [If, according to the Fiqh of the Applicant(s), Zakat is not deductiblededuction is not applicable, then relevant Declaration on prescribed format shall be submitted by all the Applicant(s) with the concerned Participant/TREC Holder]. Non-Muslims shall submit an affidavit. 5. Particulars of nominee (Optional but if desired, nomination should only be made in case of sole individual and not joint account) [In case of death of Sub-Account Holder / Customer: Nomination may be made in terms of requirements of Section 8079 of the Companies Ordinance Act, 19842017, which inter alia requires that person nominated as aforesaid shall not be a person other than the following relatives of the Sub-Account Holder, namely: a spouse, father, mother, brother, sister and son or daughter, including a step or adopted child.] (a) Name of Nominee: (b) Relationship with Main Applicant: [Please tick ( ) appropriate box] (c) CNIC SNIC NICOP /ARC /POC No: Please tick ( ) the appropriate box Muslim Zakat deductible Muslim Zakat nonnot- deductible Not Applicable Spouse Father Mother Brother Sister Son Daughter Daughter ED. CDC access [Please tick ( ) appropriate box] d. Expiry date of CNIC /SNIC/ NICOP / ARC / POC: (de) Passport details: (In case of a foreigner or a Pakistani origin) Passport Number: Place of Issue: Date of Issue: Date of Expiry: CDC provides FREE OF COST services under CDC access whereby sub-account holders can have real time access to their account related information. 1. Do you wish to subscribe to free of cost IVR Service? [Please tick ( ) the appropriate box] Yes No 2. Do you wish to subscribe to free of cost Web Service? [Please tick ( ) the appropriate box] Yes No 3. If you are subscribing to IVR and/or Web Service, please provide following details of your Contact Person: (a) Date of Birth (DD/MM/YYYY) D D / M M / Y Y Y Y (b) Mother s Maiden Name: FE. WRITTEN OPERATING INSTRUCTIONS 1. Signatory(ies) to give instruction to the Names of Signatory(ies) Participant/TREC Holder pertaining to the operations of the Sub-Account / Trading Account. (Please specify sub- account and trading account operating (a) (b) (c) Specimen Signatures
instructions in the relevant column along with names and specimen signatures of authorised signatories) 2. Sub-Account /Trading Account Operating Instructions in writing: [Please ( ) appropriate box] 3. Trading Account Operating Instructions: [Please ( ) appropriate box] (d) Either (Singly) (Either or Survivor) Jointly [any] (Please mention the relevant numbers of the signatories) Singly Jointly [any] (Please mention the relevant numbers of the signatories) Attorney Attorney GF. AUTHORIZATION UNDER SECTIONS 12 AND 24 OF THE CDC ACT EXCLUSIVELY FOR SETTLEMENT OF UNDERLYING TRADES, PLEDGE AND RECOVERY OF PAYMENTS, CHARGES AND LOSSES I/we the undersigned, hereby give my/our express authority to the Participant under Section 12 and Section 24 of the Central Depositories Act, 1997 to handle Book-entry Securities beneficially owned by me/us and entered in my/our Sub-Account maintained with the Participant for securities transactions that are exclusively meant for the following purposes: a. For the settlement of any underlying market transactions (trades) including off market transactions made by me/us from time to time; b. For pledge securities transactions with any Stock Exchange or a the Clearing Company House relating to any of my/our underlying market transactions (trades) to be settled through the Clearing Company from time to time; c. ba. For, where applicable, pledging of my/our securities only with a Stock Exchange Clearing Company House in accordance with the requirements of regulations of such Stock ExchangeClearing Company House for meeting any shortfall in the margin and/or mark-to-market losses requirements of the Participant and/or other Sub-Account Holders of the Participant; bbd.. For, where applicable, pledging of my/our securities only with a Stock the Securities Exchange in accordance with the requirements of regulations of such Stock the Securities Exchange for meeting base minimum capital requirements; c.d. For the recovery of payment against any underlying market purchase transactions made by me/us from time to time; d.e. Movement by me/us from time to time of my/our Book-entry Securities from my/our Sub-Account under the Main Account under the control of the Participant to my/our Sub-Account under another Main Account under the control of the Participant or to my/our Sub-Account under any Main Account which is under the control of another Participant or to my/our Investor Account; e.f. Securities transactions which has been made by way of a gift of Securities by me/us to my/our Family Members or other persons in accordance with the CDC Regulations from time to time; f.g. For the recovery of any charges or losses against any or all of the above transactions carried out by me/ us or services availed; and/or g.h. Delivery Transaction made by me/us for any other purposes as prescribed by the Commission from time to time. Specific authority on each occasion shall be given by me/us to the Participant for handling of Book-entry Securities beneficially owned by me/us for all other purposes as permitted under the applicable laws and regulations. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Note: Please note that above shall serve as a standing authorization to the Participant for handling of Book-entry Securities owned by the undersigned Sub- Account Holder(s) and entered in his/her/their Sub-Account maintained with the Participant. Handling of Book-entry Securities for all other purposes should however require specific authority in writing from the undersigned Sub-Account Holder(s) in favour of the Participant. For handling of Book-entry Securities worth Rs. 500,000/- and above, the above mentioned specific authority shall be obtained on non-judicial stamp paper. HG. SIGNATURES Name of Applicant: Date: Place: Signature: Name of Joint Applicant No 1: Date: Place: Signature: Name of Joint Applicant No 2: Date: Place: Signature: Name of Joint Applicant No 3: Date: Place: Signature: I/we hereby agree to admit the Applicant(s) as the Sub-Account Holder(s) in terms of the enclosed Terms and Conditions as amended from time to time and shall abide by the same in respect of opening, maintenance and operation of such Sub-Account. Name of Participant/TREC Holder: Date: Participant s/trec Holder s Seal & Signature: Witnesses: 1. Name: Signature: CNIC No: - - 2. Name: Signature: CNIC No: - - Enclosures*: 1. Copy of valid CNIC/SNIC/NICOP/ARC/POC/Passport of the Applicants / Joint Applicants / nominee(s) and Attorney (as the case may be). 2. Attested Copy of Power of Attorney (if applicable), duly attested by notary public. 3. Copy of Zakat Declaration of the Applicant and the Joint Applicant (if applicable). In case of Non-Muslim, an affidavit shall be submitted. 4. Terms & Conditions for DSS and IAS (Only applicable where Direct Settlement Service is selected in section C) 5. Terms & Conditions for NCS (Only applicable where National Custodial Service is selected in section C) 6. Terms & Conditions for PCM (Only applicable where Professional Clearing Member is selected in section C) * Note: Non-resident/ foreigners shall submit the documents duly attested by either notary public or Consul General of Pakistan having jurisdiction over the Applicant(s). IH. FOR THE USE OF PARTICIPANT/TREC HOLDER ONLY Particulars of Customer Relationship Form verified by : Application: Approved Rejected Signature: (Authorized signatory)/stamp Date: Sub-Account no. issued: Sub-Account /Trading Account opened by: Saved by: Posted by: Signature: Date: Signature: Date: Remarks: (if any) ACKNOWLEDGEMENT RECEIPT Application No: Date of receipt: I/We hereby confirm and acknowledge the receipt of duly filled and signed Customer Relationship Form from the following Applicant: [Insert Name of Applicant(s)] Participant s / TREC Holder Seal & Signature: