Session Time: 11:00 am Presenter Mr. Owais Anwer Manager – Customer Support Services CDC Pakistan Limited 1
Centralized eIPO System The Central Depository Company of Pakistan (“CDC”) developed a Centralized eIPO System (“CES”) through which applications for subscription of securities offered to the general public is easily made electronically / online. CES is accessible through the web link https://eservices.cdcaccess.com.pk Payment of subscription money is made through 1 LINK’s member banks available for CES. For making application through CES, investors must be registered with CES. 2
Investor eIPO Subscription through Master User for eIPO Master User TREC Holder 3
Master User for eIPO CDC has introduced a new facility in Centralized eIPO System (CES) through which sub-account holder(s) will be able to authorize their respective TREC Holders who are Participants in Central Depository System (CDS). Authorized Participants will then electronically subscribe on behalf of their sub- account holder(s) in securities offered through Initial Public Offerings (IPOs) The securities of successful applicants will be credited directly in the Sub- accounts under the subscribing Participant’s umbrella. 4
Master User for eIPO Participants will also be able to make payment against such electronic subscriptions in light of Regulation 4.18.1 (a) of the PSX Regulations as spelled out in the PSX Rule Book. Quote “Provided further that the Broker shall not make application for subscription of securities offered through IPO on behalf of its clients unless the client has paid subscription money or the client has sufficient credit balance with the Broker. Provided further that the Broker shall comply with the procedures prescribed by the Exchange and/or CDC in respect of subscription of securities by the broker on behalf of their client through IPO including eIPO ” Unquote. In case the sub-account of the successful applicants has been blocked or closed, after the subscription, then securities shall be parked into the CDC’s IPO Facilitation Account and successful applicants can contact CDC for credit of shares in its respective account. 5
Master User for eIPO (Sub-account Holder) 6
Master User for eIPO (Sub-account Holder) 7
Master User for eIPO (Sub-account Holder) 8
Master User for eIPO (Participant end) 9
Master User for eIPO (Participant end) 10
Master User for eIPO (Participant end) 11
Master User for eIPO (Participant end) 12
Master User for eIPO (Participant end) 13
Zakat Repository System 14
Overview Zakat Repository was made live in CDS for Participants on January 20, 2020 Accordingly intimation via NMS was sent on January 15, 2020 Reminder NMS was sent on February 17, 2020 Reminder letters sent subsequent to Reminder NMS Timeframe allotted: 60 days from Live Date i.e. till March 21, 2020 CDS time extension till 8:00 PM from March 03, 2020 Deadline extended: April 30, 2020 and then June 30, 2020 Final Deadline: August 31, 2020 15
Need for Zakat Portal Zakat forms (Zakat Declaration and Solemn Affirmation Letter) are currently being maintained in physical form by the Participants, while the Issuers and the RTAs obtain the same from respective Participants as and when required for the purpose of Zakat Audit. Through this portal, Participants would become enabled to upload and maintain electronic record of the Zakat Declaration and Solemn Affirmation Letters of their clients. The forms would then be accessible to the RTAs (on behalf of their respective Issuers) enabling them to take necessary action in respect of verification for the purpose of Zakat deduction at the time of Dividend payment. 16
Issues faced during Zakat Audit Participants perform manual activity of locating the forms for every security within their record at the time of Zakat Audit and then provide the same to Issuers/RTAs as and when required by the Issuer or its RTA. Issuers/RTAs experience a hassle to obtain CZ-50 / the Letter (as applicable) from the CDS Participants and to undertake various follow-ups in order to retrieve the requisite format. 17
Why the System has been developed? CDC always strives to facilitate the investors and ensure ease of doing business in the Capital Market. Considering the aforementioned challenges and to overcome problems being faced by the Capital Market Participants, CDC took an initiative and proposed a concept of Zakat Repository to the Zakat Authorities to convert physical forms into electronic form. 18
Who would use this system? Participants (Brokers, Non-Brokers & IAS) RTAs on behalf of the Issuers Zakat Audit Authorities 19
Benefits of Zakat Portal Free of Cost Service offered by CDC for Capital Market development and digitization. Reduced labor and hassle of locating Declaration/the Letter at the time of Zakat Audit. Electronic availability of record with easy access and search options. R/TA & Zakat Auditor will be able to access the forms directly from the System and there will be no need to request the CDS Participants for the same. Increased transparency through proper maintenance of record. 20
Upload Function Key Facts Participants who are required to upload the Zakat forms: Brokers, Non-Brokers & IAS Key points to be taken into consideration: Zakat Declaration Form / Affirmation Letter must be uploaded for Title and all Joint holders in the account File Name Convention upon download: Participant ID _ Account #_UIN_D/A_ddmmyyyy Maximum File Size: File size must not be greater than 600 KB File Format allowed: PDF 21
Conditions for Upload Function If “ Zakat Status = Muslim Zakat Non-Deductible ” then Zakat Declaration is mandatory for Principal and for Joint Holder UINs either Zakat Declaration or Solemn Affirmation Letter are required If “ Zakat Status = Not Applicable ” (Individual Pakistani) then Solemn Affirmation letter is mandatory for Principal UIN and for Joint Holder UINs either Zakat Declaration or Solemn Affirmation Letter are required. Form/Letter should be in Original or Attested in Original (Scanned in color). The format of the Form is correct. 22
Conditions for Upload Function Insertion of correct date of declaration. Date of Declaration will be Date of receiving stamp of Participant (if the Participant stamped the Zakat Declaration on receiving) Date on which the Zakat Declaration was made/signed The forms are required to be uploaded in all the existing accounts as well for all Title and Joint Account holders. New Account with the above mentioned Zakat Statuses would required to be uploaded with the Zakat forms. Note: CDC is only facilitating the digitization of Zakat Declarataion & Solemn Affirmation Letters and is not responsible for verification of the uploaded forms. The respective Issuer / RTA is responsible for verification therefore, non-availability or discrepancy in any/all of the forms in an account may result in deduction of Zakat of the account holder(s) by the Issuer/RTA. 23
Upload Function On Account Opening User uploads Forms/Letters User saves & posts the New for relevant UINs Account Tab activates if Zakat Status is either “Muslim Zakat Non- Deductible” or “Not User does not upload System displays error Applicable” Forms/Letters for relevant message and does not UINs allow saving of account 24
Declaration Date 25
Key Words Zakat Form Solemn Affirmation Letter List of Key Words occurring in most new and old formats Declaration Solemn Affirmation Assets Affidavit Zakat Religion Ushr Oath 1980 Muslim Solemnly 26
Zakat Repository Upload Functionality 27
Upload Functionality: Muslim Zakat Deductible 28
Upload Functionality: Muslim Zakat Non-Deductible 29
Upload Functionality: Prior to form upload 30
Upload Functionality: After form upload 31
Upload Functionality After form upload-Same as Principal 32
Zakat Repository Retrieval Functionality 33
Retrieval Functionality 34
Retrieval Functionality 35
Reports 36
Reports 37
Summary Report 38
Summary Report 39
Detail Report 40
Detail Report 41
Detail Report 42
Detail Report 43
Detail Report 44
Detail Report 45
Key Takeaways Final Deadline is August 31, 2020 With effect from September 01, 2020, Issuers / their RTAs shall only accept digitized Zakat Declaration and Solemn Affirmation letter Forms must be uploaded for all accounts holders in case of Joint Accounts Forms for Joints Holders must be uploaded in Accounts with status “ Partially Uploaded” on priority basis Ensure correct input of Declaration Date 46
Q&A Session 47
Thank You! To learn more about CDC Pakistan, please visit: www.cdcpakistan.com https://www.linkedin.com/company/central-depository-company-of-pakistan-limited/ https://twitter.com/cdcofficialpk https://www.facebook.com/CDCPL/ 48
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