Central Depository Systems (Pvt) Limited

Custodian Trades

Trades carried out on behalf of Account Holders registered through a Custodian Bank are called custodian trades.

Trade affirmations and Rejections by Custodian Banks

The CDS at the end of every market day will initiate a trade confirmation identifying the CDS account holder and the Participant Custodian Bank. The trade has to be affirmed by the relevant custodian bank by using CDS Form 22 by the Participant Custodian Bank by 14:.30 hours on Trade Day plus 1 (T+1.)

Custodian banks have the right to reject any transaction executed for any of their clients by a Member Firm of the CSE provided such a rejection of a trade is notified to the CDS by 14.00 on T + 1.For this purpose Custodian Banks are required to submit CDS Form 23 to the CDS.

The CDS will on receipt of the rejection shall instruct the Member Firm to buy back shares in the event of a sale or meet the settlement obligation in the event of a purchase. New settlement schedules would be generated to the custodian bank, the relevant member firm and the settlement bank