IBAN must to maintain CDS accounts

KARACHI: Central Depository Company (CDC) has made it mandatory for accountholders to provide international bank account numbers (IBAN) as part of the registration details for existing and new accounts in the Central Depository System (CDS).

As per Section 242 of the Companies Act, 2017, all listed companies are required to pay cash dividend directly into the bank accounts of their shareholders electronically. For companies to comply with this requirement and to make this process efficient, it has become mandatory that IBAN of investing public is available to pay cash dividends electronically.

“This amendment will facilitate the electronic payment of cash dividends directly into the bank account of shareholders, making the process more transparent, efficient, and in line with international best practices,” a statement said. CDC has advised the investors to provide the IBAN number of title holder of the CDS account to CDC, and for physical securities, to their respective registrars latest by October 31, 2017.