Pakistan Stock Exchange
What is a CDC account and how does it protect my shares?
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Short answer
The Central Depository Company of Pakistan (CDC) holds PSX shares electronically. Most investors have a CDC sub-account opened through their broker; shares in it are in your name but moved by broker instructions. A CDC Investor Account (IAS) is held directly with CDC, so shares move only on your own instruction — PSX's investor guidance calls it more secure. Either way, check CDC statements and alerts regularly.
Two ways to hold shares
| Sub-account (via broker) | Investor Account Services (IAS) | |
|---|---|---|
| Opened by | Your broker, with your trading account | You, directly with CDC |
| Who can move shares | Broker, on your trade instructions | Only you |
| Trading | Directly through the broker | Still needs a broker account; shares are transferred for settlement |
| Security | Good, with alerts | Higher — PSX guidance calls it more secure |
| Convenience | Simplest | Extra steps per sale |
Why the depository matters
Because your shares are recorded in your own name at CDC rather than only on the broker's books, they remain yours even if a broker gets into trouble. Problems arise mainly when an investor lets a broker trade without instructions or ignores statements — unauthorised trades and transfers have been the root of past broker scandals in Pakistan.
Services to switch on
- SMS and email alerts for every movement of shares and cash.
- Monthly or periodic eStatements of holdings and activity.
- Web and phone access to view balances (available to IAS holders and, through brokers, to sub-account holders).
- Registered IBAN so dividends are paid electronically.
Monthly checks
- Compare your CDC statement with your broker's trade confirmations.
- Look for trades or transfers you did not authorise.
- Confirm dividends and bonus shares were credited.
- Report discrepancies to the broker in writing, then to PSX and the SECP if unresolved.
Overseas Pakistanis and RDA
Roshan Digital Account holders who choose Roshan Equity Investment get a CDC account linked to an integrated broker. Dividends and sale proceeds flow to the CDC cash balance and can be returned to the RDA. The same advice applies: keep alerts on and review statements.
How to open a CDC Investor Account
- Contact CDC or a participating bank to request the IAS account-opening form.
- Provide your CNIC (or NICOP), bank details for dividends, contact details and nominee information.
- Complete CDC's KYC checks; once approved you receive your IAS account number and online access.
- Tell your broker to settle trades through your IAS: purchases are delivered to it, and for sales you transfer shares to the broker.
- Keep SMS and email alerts on so every movement is confirmed to you.
Roman Urdu mein jawab
CDC account kya hai?
Central Depository Company of Pakistan (CDC) PSX shares electronically rakhti hai. Aksar logon ka broker ke zariye CDC sub-account hota hai — shares aap ke naam par, lekin broker ki hidayat par move hote hain. CDC Investor Account (IAS) seedha CDC ke paas hota hai aur shares sirf aap ki hidayat par hilte hain — PSX ise zyada mehfooz kehta hai. SMS alerts aur statements hamesha check karein.
Frequently asked questions
How do I check my shares in CDC?
Use the eStatement, SMS alerts and online access provided by CDC or through your broker, and compare them with your trade confirmations.
Can my broker sell my shares without permission?
They must not. Trading without your instructions is a violation; alerts let you spot it quickly. An IAS adds protection because only you can move shares.
Do I need both a broker and a CDC account?
Yes. The broker executes trades on PSX; CDC holds the shares. A sub-account is opened automatically with most brokerage accounts.
What happens to my shares if my broker closes?
Shares recorded in your name at CDC remain yours and can be moved to another broker under regulatory procedures.
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