Opening of Client Accounts – Resident

The applicants who wish to open a CDS account has to submit the duly completed Client Account Opening Forms together with the relevant supporting documents through a Participant organization (a stockbroker or a custodian bank).

After scrutinizing the account opening documents inclusive of the supporting documents the CDS shall register the applicant in the CDS system.

Once the registration process is completed the CDS system will generate an acknowledgement slip (CDS Form13) with the CDS Account number and this acknowledgement would be directly sent to the Participant as a soft copy, confirming the CDS account opening

The CDS shall reject incomplete account opening documentation giving reasons for rejection (CDS Form 14) and hand over the same to Participants.

Resident Individuals

Body Corporates

Residents with normal identification

  1. A clear photocopy of the National Identity Card (NIC).

    • If the NIC is not available a copy of a valid Passport as at the date of the Account being opened at the CDS.

    • In the event an existing CDS account holder registered under a NIC has lost/misplaced the NIC and is unable to submit a copy through the new participant, the CDS shall accept a copy of a valid passport which bears the NIC number. This should be submitted together with a sworn affidavit stating the fact that the NIC is not available.

    • In the event, both the NIC and Passport are not available, a copy of the Driving License should be submitted, together with an Affidavit confirming the fact that both NIC and Passport are not available.

  2. CDS Form 1

  3. CDS Form 1(A)

  4. Proof of residency document as per the Rules issued by the Financial Intelligence Unit of Sri Lanka

Note:
If the account is to be opened using a Power of Attorney (POA) a copy of a valid POA is required.

Plantation Employees (If NIC is not available)

  1. A letter issued by the Superintendent of the Estate confirming the applicant’s EPF number and a copy of the EPF Statement of the applicant.

  2. A copy of the Proof of residency document as per the rules issued by the Financial Intelligence Unit of Sri Lanka.

  3. CDS Form 1

  4. CDS Form 1(A)

Note:This type of accounts can be opened only for the purpose of sale of Plantation Employee Shares.

Internally Displaced Persons (IDP)

  1. A copy of the special identification document issued under the authority of the government should be submitted for purposes of identification and as proof of residency.

  2. Alternatively if the IDP does not possess the special identification document as above, a confirmation letter issued by the ‘Grama Sevaka’ of the area in which the IDP lives should be submitted.

  3. A copy of the Birth Certificate or in the absence of a Birth Certificate, a Sworn Affidavit is acceptable.

  4. CDS Form 1

  5. CDS Form 1(A)

Local Institutions

  1. A copy of the Certificate of Incorporation of the company. If the company has changed its name, a copy of the Certificate of Name Change issued by the Registrar of Companies is required.

  2. A copy of the Articles of Association of the company.

  3. An extract of the resolution passed by the Board of Directors to open the CDS account. Alternatively the company may provide a certification in the relevant section in the account opening form (CDS Form 2)

  4. A letter issued within 3 months by the Company Secretary indicating the names, addresses, NIC or Passport numbers and occupations of all existing directors.

  5. A letter issued within 3 months by the Company Secretary confirming the Top Share Holders (names and addresses) up to a maximum of ten Share Holders.

  6. For companies listed on the Colombo Stock Exchange, a directors list and a shareholders list is not applicable.

  7. CDS Form 2 completed by the company in accordance with the provisions of the Articles of Association of the company and /or The New Companies Act (No.7 of 2007) of Sri Lanka.

  8. CDS Form 2(A) completed by the company in accordance with the provisions of the Articles of Association of the company and /or the New Companies Act (No.7 of 2007) of Sri Lanka.

Note: If an authorized person signs the CDS application form on behalf of the applicant company, A copy of the Power of Attorney/ Board Resolution authorizing such person to sign on behalf of the company is necessary. A copy of National Identity Card/Passport of such person should also be submitted.

Designated Accounts

Margin Trading Accounts

  1. A copy of the Margin Trading Agreement.

  2. The intention of the parties to open a margin trading account should be clearly stated in the Agreement.

  3. A copy of the margin trading license granted to the margin trading provider.

  4. If the borrower is a company, Certificate of Incorporation, Articles Association, names, addresses and passport numbers of the Directors, and names and addresses of the Top Ten Share Holders should be forwarded.

  5. The borrower is an individual; a copy of NIC should be attached.

  6. CDS Form 2

  7. CDS Form 2(A)

Note: The CDS forms should be completed and signed by the margin provider. The margin provider shall be the principal applicant.

Collateral Accounts/Accounts for lending purposes

(In the event listed securities are accepted by a bank licensed by the Central Bank of Sri Lanka when granting a facility to a shareholder)

  1. CDS Form 2 completed by the first (registered) owner.

  2. CDS Form 2(A) completed by the first (registered) owner.

  3. A certified copy of the agreement relating to the grant of the facility. (The intention of the parties to open a Collateral account should be clearly stated in the Agreement.)

  4. A copy of the Power of Attorney (POA) granted by the shareholder to the bank. (Alternatively provisions in the POA may also be included in the Agreement).

Segregated Accounts

In the event a company requires to open a segregated account, the company should pass a resolution to that effect .This resolution should clearly indicate the purpose of the segregation. Such company should also clearly instruct the CDS the manner and title of such segregated accounts.

Ex: A B C Ltd. – Account No.1 & A B C Ltd. – Account No.2

Documentation Required:

  1. CDS Form 2 completed and signed by the applicant.

  2. CDS Form 2(A) completed by the applicant. (If the account to be opened under a Power of Attorney a certified copy of the same is required.)

  3. A copy of the resolution as mentioned above or a copy of the swift message.