KARACHI: Central Depository Company has again reduced its base tariff for its major depository services in line with its vision to facilitate capital market participants and as per the guidelines from Securities and Exchange Commission of Pakistan for minimizing the cost of doing business.
For facilitating the induction of physical share certificates and to promote digitization, processing charges for induction have been slashed by 50 percent; likewise to support leverage products.
Transaction fee on corporate action has been waived by 100 percent and certain tariff items for mutual funds have also been reduced, said CDC release here on Tuesday.
Since its inception, CDC has reduced its tariff considerably on transactions, and even last year, CDC reduced the tariff for Asset Management Companies. For the last three years , CDC is consecutively reducing its tariff structure.
Commenting on the above reductions, Chief Executive Officer of CDC, Badiuddin Akber said that despite the pandemic induced circumstances since last year, CDC had performed exceptionally well and ensured to pass on the benefits to the market players by undertaking these tariff reductions.
This decision was in line with CDC’s strategy of reducing cost of doing business and facilitating all market players including brokers, asset management companies and most importantly the investors.
He mentioned that he was thankful to SECP in this regard as they had always encouraged CDC to bring out reforms for enhancing ease of doing business and tariff reductions to reduce cost of doing of business for the market participants, he said.
CEO-CDC said ever since start of operations in 1997, it had been CDC‘s endeavour to provide efficient and cost effective services to all its participants and rationalize its tariff over the period.
Being cognizant of the prominence of ease of doing business and the larger interest of the capital market, CDC’s board and management had always emphasized on passing on the benefit of increased transaction volume and economies of scale to investors by substantially reducing its tariff over the years which had duly been acknowledged and appreciated by all market players and SECP, the apex regulator.