KARACHI (May 03 2005): In compliance with the directive from Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC) has announced closure of its 'Group Account' facility with effect from May 1, 2005.
This is an important milestone in implementing the reform agenda laid down by the SECP aimed at achieving absolute transparency in settlement mechanisms. Group Accounts, commonly known as 'Baynaami' accounts, were used for keeping securities of the clients who did not want to disclose their identity. This measure would go long way in moving towards proper documentation of capital market dealings as there has been a persistent effort to bring about transparency and credibility to the market over the years.
Almost all securities in these accounts were moved to the beneficial owners of the securities efficiently and conveniently through the Central Depository System (CDS). Movement of such high volumes of securities in such a short time would have been unimaginable without the CDC system.
Over the years, Central Depository Company has made every possible effort to generate confidence in investors who are the lifeblood of the Capital Market.
Central Depository Company has been playing a significant role in facilitating investors through its specialised 'Investors Account Services' (IAS) tailored to the needs of small investors. “The number of Investor Accounts has grown to about 25,000 since the launch of the service in August 1999, with a growth of 54 percent since January 1, 2005.
The number of securities in IAS alone is over 5 billion, with the market value reaching up to Rs 200 billion, which shows the investors' trust in CDC's services.' reported a Central Depository Company representative.