CDS signs MoU with Pakistani Depository CDC

Thursday, 8 September 2016 00:00 - - {{hitsCtrl.values.hits}}

Central Depository Systems Ltd. (CDS), a fully-owned subsidiary of the Colombo Stock Exchange (CSE) and the Central Depository Company of Pakistan (CDC), recently entered into a Memorandum of Understanding (MoU) regarding strengthening corporation on mutual development and knowledge sharing.

The MoU was signed in the backdrop of the 25th anniversary celebrations of CDS, which was attended by the Chairman of the Asia-Pacific Central Securities Depository Group (ACG) Muhammad Hanif. Chairman of the CSE and CDS Vajira Kulatilaka and Muhammad Hanif, in his capacity as the CEO of CDC Pakistan signed the agreement.

The MoU broadens an already productive relationship between the two depositories, which share a long history, including co-founding the ACG. The CDS in recent years has actively worked towards building up its international alliances, of which notable outcomes include a MoU with the National Securities Depository Ltd. of India in 2015 and expanding its role as an active participant of the ACG.

Commenting on the MoU, Kulatilaka stated that the MoU indicates the continued commitment of the CDS to enhance cooperation within depositories and clearing institutions in the Asian region, especially with those representing neighboring countries.

He added: “The exposure we have gained through affiliations with regional organisations and peers such as the ACG and NSDL India have been instrumental in developing the CDS into an institution of international standards, particularly in terms of implementing best practices. CDC Pakistan is a leading depository in the region and we are pleased at the prospect of working with CDC for the betterment of our depositories and the capital market at-large.”

Upon its historic entry to the capital market as the first depository in South Asia in 1991, the CDS was tasked to specialise in the settlement of securities, transactions and the safekeeping of securities on behalf of domestic and international investors. The Depository has since embarked upon a number of technical and strategic growth initiatives to build and strengthen its infrastructure, implement world-class systems and provide a safe clearing and settlement environment. Today, the CDS handles dematerialisation operations, accounts services, corporate action services and clearing and settlement services for its stakeholders.