CDC ends group account facility

Posted on 05.03.05 by StockPK Team @ 11:41 am    

In compliance with the directive from Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC) has announced closure of its ‘Group Account’ facility with effect from May 1, 2005. This is an important milestone in implementing the reform agenda laid down by the SECP aimed at achieving absolute transparency in settlement mechanisms. Group Accounts, commonly known as ‘Baynaami’ accounts, were used for keeping securities of the clients who did not want to disclose their identity. This measure would go long way in moving towards proper documentation of capital market dealings as there has been a persistent effort to bring about transparency and credibility to the market over the years.