KARACHI: Central Depository Company (CDC) has made it mandatory for account holders to provide International Bank Account Numbers (IBAN) as part of the registration details for existing and new accounts in the Central Depository System (CDS).
As per Section 242 of the Companies Act, 2017, all listed companies are required to pay cash dividend directly into the bank accounts of their shareholders electronically. For companies to comply with this requirement and to make this process efficient it has become pertinent that International Bank Account Number (IBAN) of investing public are available to facilitate payment of cash dividends in electronic mode.
This amendment will facilitate the electronic payment of cash dividends directly into the bank account of shareholders, making the process more transparent, efficient, and in line with international best practices.
CDC has advised the investors to provide the IBAN number of Title Holder of the (CDS) account to CDC and for physical securities to their respective Registrars latest by October 31, 2017.