The Central Depository Company (CDC) further reduced the base rate for its major depository services to lower the cost of doing business in the capital market.
The move was “in line with the vision to facilitate capital market participants and the guidelines of the Securities and Exchange Commission of Pakistan (SECP),” according to a statement released by the company.
Processing fees for induction have been reduced by 50% to facilitate induction of physical stock certificates and promote digitization.
Likewise, transaction fees on securities transactions have been removed 100% to support leveraged products, and some tariff items for mutual funds have also been reduced.
“Since its inception, CDC has significantly reduced its tariff on transactions, and even last year, it reduced the tariff for asset management companies,” the statement said.
“Over the past three years, DCC has continuously reduced its pricing structure. “
Speaking to The Express Tribune, Arif Habib Limited, Sales Manager Saad bin Ahmed, said: These fees at minimum levels bring us to the same level as global practices.
With this new incentive, international investors will gain confidence in the Pakistani market.
“The digitization of the custodian process makes it easier for CDC investor account holders and helps them monitor their portfolio holdings with the click of a button,” he said.
Commenting on the fee reduction, CDC CEO Badiuddin Akber said that despite the circumstances induced by the pandemic, CDC has undertaken tariff cuts to pass the benefits on to market players.
“This decision is in line with CDC’s strategy of reducing the costs of doing business and making it easier for all market players, including brokers, asset management companies and, most importantly, investors,” he said. declared.
He thanked the SECP for encouraging the company to undertake reforms to improve the ease of doing business and make tariff reductions in order to facilitate market participants.
“The CDC has strived to provide efficient and cost-effective services to all of its participants and to rationalize its rates during the period,” he said.
“CDC’s board of directors and management have always placed greater emphasis on passing on to investors the benefits of increased transaction volume and economies of scale by significantly reducing its rates over the years. which has been recognized and appreciated by all market players and the SECP.
Posted in The Express Tribune, October 6e, 2021.
As Business on Facebook, to follow @TribuneBiz on Twitter to stay informed and join the conversation.