Central Depository Systems (Pvt) Limited

De-Materialization of securities certificates

If a shareholder is in possession of Share Certificates, such certificate could be deposited/lodged with the CDS, either for safe keeping purposes or to sell the shares.

According to the SEC directive no. SEC/LEG/10/11//51 dated 22nd November 2010, the Securities and Exchange Commission has directed the CSE and CDS to mandate the dematerialization of all listed securities.

However, there are certain share certificates that need to be referred to the Company Secretaries/Registrars for dematerialization. Acceptability of the certificates of all listed companies can be verified by referring to the following document.

The shares that are deposited with the CDS will be credited to the CDS account of the shareholder.

The account holder must submit CDS Form 3 (Nationals) or CDS Form 4(Non Nationals) and CDS Form 5 with the relevant Securities Certificates to the relevant Participant.

The Participant shall verify the accuracy of information provided in the CDS Form 3/4 with the Securities Certificate(s). The documents (CDS Form 5 and the CDS Form 3/4) should be certified by an authorized signatory of the Participant.

The Participant shall forward the relevant documents to the CDS and the CDS shall verify the accuracy of the information furnished.

If for any reason a Share Certificate cannot be accepted a notice shall be given to the CDS by the Company Secretary/Registrar of the listed entity within two (2) market days from the date of receipt with reasons for such refusal.

Documents Required

  • A duly completed CDS Form 3 (Nationals) / CDS Form 4 (Non Nationals)
  • CDS Form 5
  • Original Share Certificate(s)
  • In the event of a minor discrepancy of a name between the CDS account and the share certificate an affidavit is required to explain the discrepancy or a supporting document such as marriage certificate (as applicable).

Note: If the deposit is to be made by a person acting under a Power of Attorney, a copy of the Power of Attorney which is registered with the respective Company Secretary/Registrar should be attached with the above documents.

Certificates which carries EPF number

If the CDS account is opened with the NIC number and if the Securities Certificate bears the EPF number,a EPF statement which carries both the EPF Number and NIC Number should be submitted.

Alternatively, a letter from the Estate Superintendent can be submitted confirming that EPF holder and the NIC holder is one and the same.

Certificates which carries Passport number

If the CDS account is opened under the NIC number, to deposit certificates bearing the Passport number or vice versa; a copy of the passport should be submitted with the relevant documentation to confirm that it relates to the same person. The NIC number should be indicated in the Passport.