CDC and CDNS sign MoU for the issuance of digital Savings Certificates

Central Directorate of National Savings (CDNS) and Central Depository Company of Pakistan Limited (CDC) signed a Memorandum of Understanding for mutually collaborating to convert and issue National Savings Certificates (NSCs) in digital form to reduce physical process flows of different transactions and develop a systematic framework through which NSCs can be inducted into the Central Depository System (CDS).

While addressing the occasion, DG CDNS, Mr. Hamid Raza commented that “The initiative is in line with CDNS’s ultimate objective of the digitization of National Savings Certificates. The recent circumstances with the shift to digitization make it all the more exigent for CDNS to undergo complete digital transformation. This platform will facilitate investors of National Savings Certificates, making it easier for them to invest in and maintain their NSCs in electronic format, thereby promoting and harvesting the savings culture in Pakistan at the grass root level.”

He said the pivotal role of innovation in economic development is undeniable, with advancements in Fintech leading the change.

Innovative tech-based processes can lead to higher productivity, reduced turnaround times, lower costs and wider outreach.

At the occasion, describing the objectives of the project, CEO-CDC Mr. Badiuddin Akber said that “The core objective of establishing a Depository in Pakistan was to dematerialize all types of financial instruments in Pakistan.

Considering this as our ultimate vision, we have dematerialized almost all types of securities in Pakistan; however, National Savings Certificates are one major aspect yet to be dematerialized. As the Depository, we feel that it is our National duty to bring our processes at par with the international best practices, and it is indeed the need of the hour that a mechanism must be developed for investors to have NSCs in book-entry form.”

Through this project, CDC will facilitate Investors, with investment in a diverse array of securities, to maintain their complete portfolio of dematerialized securities in a single account at CDC. This project will eliminate the risk of theft, loss, mutilation, etc. as well as the hassle of printing, dispatching, maintenance, etc. of physical certificates by maintaining the NSCs in electronic format in the CDS. CDC will extend the same benefits to CDNS investors as it currently provides to investors of book-entry securities in the CDS, including easy, efficient and secure transfer process for certificates, online account access and pledging facilities. At present, CDC Account can be opened through CDC offices or through digital portal of CDC from anywhere in Pakistan; however, both organizations will also work on the possibility of opening of CDC accounts through the nationwide network of CDNS offices in order to make it more convenient for investors to open CDC Account and hold National Savings certificates in digital form.

The event was also attended and addressed by Chairman CDC – Mr. Moin Fudda. The event was also attended by the senior management of CDC and CDNS.

Finance Minister launches “EMLAAK Financials”, Pakistan’s first digital Mutual Fund aggregator developed by CDC

As a landmark and first of its kind initiative in Pakistan’s capital market landscape, “Emlaak Financials” the first digital aggregator platform for mutual funds has been formally inaugurated by the Honorable Federal Minister for Finance & Revenue, Dr. Miftah Ismail on Aug 5, 2022 at CDC House, Karachi. This platform has been successfully implemented as a digital distribution channel initially for Mutual Funds and later on for other asset classes also.

The Pilot project for Emlaak was initially launched in 2021 for the Sahulat account opening via the platform, after which CDC has continued to abide by its commitment to collaborate with the Mutual Fund Industry for enhancing the platform. The full-fledged account opening feature has now been launched via this online investment portal which is the first of its kind in Pakistan allowing multiple funds from different AMCs to be offered to investors through a single platform.

While officiating the event, Honorable Federal Minister for Finance & Revenue Dr. Miftah Ismail said, “Emlaak Financials, which has been implemented as a digital aggregator of Mutual Funds, is a very important and timely initiative by SECP and very well executed by CDC. It is very important for our economy that we should introduce such novel concepts which will promote the investment culture in Pakistan and provide an easy and informative platform to the investors thus enabling them to make wise investment decisions while giving them the convenience to open their mutual fund accounts digitally from anywhere without having to visit the brick & mortar offices of Asset Management Companies.”

While addressing the occasion, Mr. Aamir Khan—Chairman SECP said, “It is indeed a very important milestone for the Mutual Fund Industry as it embarks on this consolidated digital distribution channel launched for the first time in Pakistan. We, at SECP, are strong proponents of re-engineering processes for promoting efficiency and transparency through digitalization and will continue to support and encourage all such initiatives by providing all the required Regulatory assistance in this regard.

Mr. Moin Fudda, Chairman of CDC’s Board of Directors, welcomed the Finance Minister and others guests after which CEO MUFAP Ms. Mashmooma Majeed addressed the audience. At the occasion, describing the objectives of the platform, Mr. Badiuddin Akber—CEO CDC said, “Emlaak Financials has been envisioned to pave the way for the growth of the Mutual Fund Industry and promote the savings culture in Pakistan at the grass-root level. CDC is committed towards providing innovative tech-based platforms to Capital Market entities through which they can leverage CDC’s technological edge to enhance their investor outreach in a convenient, informative and interactive manner.”

The event was also attended by Director SECP – Ms. Khalda Habib, representatives of the Asset Management Industry and other Industry representatives, who lauded CDC’s efforts in undertaking this initiative and playing its role for the development of the mutual fund industry.

CDC ITMinds Limited signs an agreement with Pak Qatar Asset Management Company Limited and Pak Qatar Family Takaful Limited for Back Office service provisioning

Karachi, June 6, 2022: ITMinds Limited (ITMinds), a wholly owned subsidiary of Central Depository Company of Pakistan Limited (CDCPL), has entered into outsourcing arrangement with Pak Qatar Asset Management Company Limited (PQAMCL) & Pak Qatar Family Takaful Limited (PQFTL) to provide Back Office Accounting Services to PQAMCL & PQFTL. The agreements were signed by Mr. Farhan Shaukat CEO-PQAMCL, Mr. Ahsan Qureshi CFO-PQFTL with Mr. Iqleem-uz-Zaman Khan CEO-ITMinds in the presence of Mr. Badiuddin Akber Director-ITMinds & CEO-CDCPL.

Through this arrangement, ITMinds will facilitate PQAMCL and PQFTL in concentrating on their core business activities, i.e. managing investors’ money and savings, by relieving them from various non-core critical back office functions like accounting services, Settlement of portfolios, Unit management related activities, Funds NAV calculation, Facilitation for Compliance/ Reporting, Information Security, Business Continuity and IT arrangements.

Commenting on the occasion, Mr. Farhan Shaukat, CEO-PQAMCL, said that this arrangement will enable PQAMCL to concentrate on its core business of managing investors’ funds while outsourcing the back office functions to a Professional Fund Administrator. Also commenting on the occasion, Mr. Badiuddin Akber, Director ITMinds & CEO-CDCPL, said that the concept of outsourcing non-core critical business activities has proved to be efficient and cost-effective in today’s business world. Hence, we have commissioned ITMinds with this aim to enable AMCs and other organizations to outsource their back office functions to a competent and reliable BPO partner, thus facilitating them to augment the focus of their management on the core business which is more integral to their commercial success while achieving efficiency, scalability & transparency of processes. Mr. Iqleem-uz-Zaman Khan CEO-ITMinds highlighted that as of 31^st May 2022, ITMinds has 8 active clients leveraging economies of scale with ITMinds BPO services, while more clients are also in the pipeline. At the ceremony Mr. Waqas Ashraf, CFO- ITMinds and others senior members of the Companies were also present.

Governor State Bank visits CDC to further strengthen SBP’s commitment to the development of Pakistan Capital Market

Governor State Bank Dr. Reza Baqir visited CDC House to mark the successful operationalization of important projects for Pakistan Capital Market, namely Roshan Equity and RAAST for Dividend payments, which have been implemented in the recent past by the State Bank in collaboration with the Capital Market and commercial banks.

It is indeed a moment to celebrate for CDC and the entire Capital Market as the successful roll-outs of these key projects of market development have started yielding promising results besides effecting ease of doing business through innovative solutions, digitization and efficiency of processes.

Speaking at the occasion Governor State Bank Dr. Reza Baqir, said, “This is an occasion of immense and significant achievement as we gather here to celebrate the successful roll-out of important projects of national interest—including Roshan Equity and RAAST—that have been initiated by the State Bank of Pakistan and very well executed by commercial banks and CDC. In all these projects, Central Depository of Pakistan has been playing the important roles of facilitator, infrastructure architect and information sharing hub. This is only the beginning of what our vision is for the development of Pakistan’s Capital market. SBP is committed to work with SECP to support Capital market entities in this regard. Now, we have initiated a new project for the Capital Market pertaining to Shared KYC through which investors can open Capital Market Account through their respective Bank’s portal/app. This project will pave the way for wider outreach for our Capital Market.”

Mr. Badiuddin Akber CEO-CDC thanked SBP and SECP for their continued support and patronage in achieving these milestone in its market transformation journey. CDC is already processing thousands of transactions related to Roshan Digital Accounts and RAAST for Stock Exchange, for which CDC acts as the information sharing hub between the banks and capital market entities. Now, for the “Shared KYC project”, CDC will again act as the Information Sharing bridge for the digital opening of capital market accounts through banking portals for Local Resident Investors with the objective of removing duplication of information capture and KYC processes, he further said.

At the start of the ceremony, Mr. Moin Fudda Chairman Board of Directors-CDC, welcomed Dr. Baqir and other guests to CDC and highlighted the achievements of SBP under the leadership of Dr. Baqir. Mr. Furrukh Khan MD-PSX also addressed the ceremony and stressed on the important role of SBP in the development of Pakistan Stock Market. Ms. Musrat Jabeen Executive Director-SECP focused on the significance of collaboration between SBP and SECP.

Prominent personalities from the banking sector and Pakistan Capital Market also attended the event.

Under SECP’s regulatory impetus, IAP and CDC-ITMinds Limited sign MoU for Digital Aggregation of Insurance Products

Karachi, December 03, 2021:Under the regulatory impetus of SECP, Insurance Association of Pakistan (IAP) and Central Depository Company of Pakistan Limited (CDC) signed a Memorandum of Understanding for the digital aggregation of Insurance products CDC’s Emalaak Financials platform. Ms. Sadia Khan, Commissioner – Securities and Exchange Commission of Pakistan (SECP) presided at the MoU Signing Ceremony at the CDC House, Karachi.

At the occasion, describing the features of the platform, CEO-CDC Mr. Badiuddin Akber said that “This Fintech solution of “Emlaak Financials” is indeed a landmark initiative of national significance, as it aims to become “Digital Financial Super Market” in Pakistan by leveraging the potential of technology to increase outreach for various financial products.”

Mr. Azfar Arshad, Chairman IAP applauded the efforts of CDC and SECP and said that this initiative will pave the way for the growth of the Insurance Industry.

While addressing the occasion, Commissioner SECP – Ms. Sadia Khan said that this digital transformation is expected to have an impact throughout the insurance value chain, from underwriting and pricing of products, their marketing and distribution, through to claims processing and the ongoing customer servicing. The distribution of insurance products through the digital portal EMLAAK is expected to provide low-cost and centralized solution to policy holders by providing comparative cost benefit analysis of different products on a centralized platform. This will lead to a reduction in the protection gap as new market segments are accessed as well as an increase in the insurance penetration. The goal of the regulator is to enable the insurance industry to play its rightful role both in terms of providing the social safety net as well as development of the capital market.

She commended the role of CDC in bringing this new initiative to life by capitalizing on its technological capability.

The event was attended by the senior members of IAP’s Executive Committee and other high ranking officials of the Insurance industry.