Friday, December 1, 2023

CDC reduces basic tariff

The Central Depository Company (CDC) of Pakistan has significantly decreased the basic rate for its key depository services in order to make it more accessible to participants in the country’s capital markets.

The corporation has reduced processing fees for the introduction of physical share certificates by 50% in order to encourage the use of digital share certificates.

It has also cut certain tariff items for mutual funds in order to encourage leverage products by 100 percent and waived transaction fees on corporate actions entirely.

According to the CDC, the Rs67,500 annual fee for eligible securities issued amount (face value)/annual fee on CDS eligibility of units of open-end mutual funds has been removed as of January 1, 2019.

Read Also: Tariff hike of up to Rs2.97 per unit

The Securities Deposit Processing Cost has been reduced from 0.25 percent to 0.0125 percent, the annual fee (for people and non-individuals) has been reduced from Rs375 to Rs338 and from Rs2,000 to Rs1,800, and the accounts statement fee has been reduced from Rs100 to Rs50.

“Despite the pandemic-induced circumstances that have existed since last year, we have taken steps to guarantee that the advantages of these tariff reductions are passed on to market participants.” According to CDC Chief Executive Officer Badiuddin Akber, “This decision is consistent with the company’s aim of lowering the cost of doing business and enabling all market participants, including brokers, asset management organizations, and, most importantly, investors.”

“We owe a debt of gratitude to the SECP (Securities and Exchange Commission of Pakistan) in this regard, as they have consistently encouraged us to implement reforms to improve the ease of doing business and tariff reductions to lower the cost of doing business for market participants,” he continued.

A single organization, the Central Depository for Credit (CDC), is in charge of the electronic (paperless) settlement of transactions that take place on the Pakistan Stock Exchange.

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