Session Time: 11:00 am · 2020-07-08 · Master User for eIPO Participants will also be able to make payment against such electronic subscriptions in light of Regulation 4.18.1 (a)

Session Time: 11:00 amPresenter

Mr. Owais AnwerManager – Customer Support Services

CDC Pakistan Limited

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Centralized eIPO System

The Central Depository Company of Pakistan (“CDC”) developed a CentralizedeIPO System (“CES”) through which applications for subscription of securitiesoffered 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 1LINK’s member banks availablefor CES.

For making application through CES, investors must be registered with CES.

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https://eservices.cdcaccess.com.pk/

Master User for eIPO

Investor

TREC Holder

eIPOSubscription

through Master User

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CDC has introduced a new facility in Centralized eIPO System (CES) through whichsub-account holder(s) will be able to authorize their respective TREC Holders whoare 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.


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Participants will also be able to make payment against such electronic subscriptions in lightof 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 securitiesoffered through IPO on behalf of its clients unless the client has paid subscription moneyor the client has sufficient credit balance with the Broker. Provided further that the Brokershall comply with the procedures prescribed by the Exchange and/or CDC in respect ofsubscription 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 thesubscription, then securities shall be parked into the CDC’s IPO Facilitation Account andsuccessful applicants can contact CDC for credit of shares in its respective account.

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Master User for eIPO (Sub-account Holder)

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Master User for eIPO (Participant end)

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Zakat Repository System

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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

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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.

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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.

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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.

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Who would use this system?

Participants (Brokers, Non-Brokers & IAS)

RTAs on behalf of the Issuers

Zakat Audit Authorities

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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 ZakatAudit.

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 andthere will be no need to request the CDS Participants for the same.

Increased transparency through proper maintenance of record.

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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

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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.

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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 ZakatDeclaration 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 andJoint Account holders.

New Account with the above mentioned Zakat Statuses would required to be uploadedwith the Zakat forms.

Note: CDC is only facilitating the digitization of Zakat Declarataion & Solemn Affirmation Letters and is notresponsible for verification of the uploaded forms. The respective Issuer / RTA is responsible forverification therefore, non-availability or discrepancy in any/all of the forms in an account may result indeduction of Zakat of the account holder(s) by the Issuer/RTA.

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Upload FunctionOn Account Opening

Tab activates if Zakat Status is either “Muslim Zakat

Non-Deductible” or “Not Applicable”

User uploads Forms/Letters for relevant UINs

User saves & posts the New Account

User does not upload Forms/Letters for relevant

UINs

System displays error message and does not allow saving of account

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Declaration Date

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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

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Upload FunctionalityZakat

Repository

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Upload Functionality: Muslim Zakat Deductible

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Upload Functionality: Muslim Zakat Non-Deductible

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Upload Functionality: Prior to form upload

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Upload Functionality: After form upload

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Upload Functionality After form upload-Same as Principal

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Retrieval FunctionalityZakat

Repository

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Retrieval Functionality

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Retrieval Functionality

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Reports

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Reports

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Summary Report

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Summary Report

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Detail Report

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Detail Report

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Detail Report

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Detail Report

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Detail Report

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Detail Report

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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

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Q&A Session

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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/

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Documents

Session Time: 11:00 am · 2020-07-08 · Master User for eIPO Participants will also be able to make payment against such electronic subscriptions in light of Regulation 4.18.1 (a)