Central Depository Company of Pakistan Limited

The Central Depository Company of Pakistan Limited (CDC) serves as the central hub of Pakistan’s capital market infrastructure. Since its establishment in 1997, CDC has revolutionized the financial landscape by introducing a paperless, secure, and efficient system for the settlement and safekeeping of securities. Headquartered in Karachi and regulated by the Securities and Exchange Commission of Pakistan (SECP), CDC supports the seamless functioning of Pakistan Stock Exchange (PSX) and other capital market institutions through its electronic platforms.

Table of Contents

• Core Functions and Services

• Leadership and Governance

• Shareholding Structure

• Strategic Initiatives and Collaborations

• Conclusion

Core Functions and Services

CDC operates the Central Depository System (CDS), an electronic book-entry platform that eliminates the need for physical share certificates. It enables real-time, secure, and transparent transfer of securities among capital market participants, including:

• Brokerage houses

• Banks and DFIs

• Asset management companies

• Insurance companies

• Retail and institutional investors

CDC has consistently expanded its portfolio beyond traditional depository services. Key services and milestones include:

• Investor Account Services (1999): Direct custody accounts for individual investors with features such as digital access, portfolio statements, and transaction alerts.

• Trustee and Custodial Services (2002): Acting as trustee for mutual funds, voluntary pension schemes (VPS), and other collective investment schemes.

• CDC Share Registrar Services Limited (2008): A wholly-owned subsidiary offering share registrar, transfer agent, and IPO processing services.

• ITMinds Limited (2009): A business process outsourcing (BPO) firm that handles accounting, fund administration, and operational support for AMCs.

• Centralized Information Sharing Solution for Insurance Industry (CISSII) (2014): A secure platform that enables insurance companies to share policyholder information and combat fraud.

• eServices (2017 onwards): A digital platform that offers eIPO subscription, centralized eDividend repository, and real-time investor account access through the CDC Access web and mobile portals.

As of 2025, CDC’s services continue to evolve with growing automation, AI integration, and seamless interlinkage with financial intermediaries across Pakistan.

Leadership and Governance

As of the latest corporate disclosures in Q1 2025, the leadership of CDC includes:

• Mr. Badiuddin Akber – Chief Executive Officer, a finance and technology expert with a decade of experience at CDC and extensive work in capital market automation and governance.

• Mr. Farrukh H. Sabzwari – Chairman of the Board, with more than 25 years of experience in investment banking and regulatory leadership. He formerly served as the Chairman of SECP from 2018 to 2021.

CDC operates under a governance framework designed to ensure transparency, investor protection, and regulatory compliance. Its board comprises seasoned professionals representing Pakistan’s leading financial institutions.

Shareholding Structure

CDC’s equity structure reflects its foundational link to Pakistan’s financial system. As of 2025, its major shareholders include:

• Pakistan Stock Exchange Limited (PSX) – 39.81%

• MCB Bank Limited – 15.00%

• Habib Bank Limited (HBL) – 11.35%

• LSE Ventures Limited – 10.00%

• National Investment Trust Limited (NITL) – 6.35%

• Industrial Development Bank of Pakistan (IDBP) – 5.00%

• Pak China Investment Company Limited – 5.00%

This diversified ownership underscores CDC’s neutral and inclusive role in serving all capital market stakeholders.

Strategic Initiatives and Collaborations

CDC has consistently undertaken strategic initiatives to modernize Pakistan’s financial ecosystem and improve investor accessibility. Noteworthy initiatives include:

• Shared KYC Initiative
  In partnership with SECP, State Bank of Pakistan (SBP), Pakistan Stock Exchange (PSX), and National Clearing Company of Pakistan Limited (NCCPL), CDC introduced a centralized KYC platform that simplifies account opening across multiple financial institutions.

• Collaboration with Meezan Bank
  In a first-of-its-kind initiative, CDC partnered with Meezan Bank to integrate share custody and trading services into Islamic banking branches. Customers can now access capital market investments through Meezan’s branch network using CDC’s secure platform.

• Introduction of eVoting and eAlerts
  To encourage retail investor participation, CDC launched eVoting solutions for listed company AGMs and SMS/email alerts for account activities, enhancing transparency and shareholder engagement.

• Investor Awareness Programs
  CDC regularly conducts investor education sessions across Pakistan in collaboration with SECP and PSX to build financial literacy and encourage stock market participation.

• Expansion of CDC Access Mobile App
  In 2024, CDC enhanced its mobile app with biometric login, live account value tracking, tax certificate download, and eIPO application modules—offering end-to-end investor convenience.

Conclusion

The Central Depository Company of Pakistan Limited remains the linchpin of the country’s capital market structure. With its robust infrastructure, forward-thinking leadership, and commitment to innovation, CDC continues to support Pakistan’s journey toward a transparent, inclusive, and technology-driven financial market.

From its foundational role in electronic settlement to its expansion into investor services, digital transformation, and strategic partnerships, CDC has solidified its reputation as the backbone of capital market stability and growth. As Pakistan’s economy evolves, CDC is poised to play an even greater role in shaping the future of financial intermediation.

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Central Depository Company of Pakistan (CDC) – The Backbone of Pakistan’s Capital Market Infrastructure (2025 Guide)

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Explore the Central Depository Company of Pakistan (CDC) and its pivotal role in capital market operations. Learn about its services, governance, partnerships, and strategic importance in 2025.

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