CDC launches eDividend Repository

KARACHI: The Central Depository Company of Pakistan (CDC) has launched an eDividend Repository service to facilitate companies’ process their dividends electronically, a statement said on Tuesday.

The Companies Act 2017 has made it mandatory for all listed companies to process their dividends electronically.

Being, the sole securities depository in the country, CDC is the infrastructure backbone of the Pakistan capital market and handles the electronic settlement of transactions carried out at the country’s stock exchange.

The Securities and Exchange Commission of Pakistan (SECP) recently introduced “Companies (Distribution of Dividends) Regulations 2017”, which spells out the method and requirements for making dividend payouts electronically, it said. The regulations also require all listed companies to provide details related to cash dividends to CDC so that the record of all cash dividends can be accumulated at one place.

The CDC’s eDividend service is an internet-based web portal and can be accessed by all investors from anywhere in the world. It will provide investors consolidated data of all their cash benefits due and credited by issuers, and in case their dividends have not been credited, the reason for non-disbursement of dividend will also be available.

The CDC will also issue an electronic certificate to the shareholders, which will contain all the details related to the cash disbursement such as dividend rates, net dividend paid, tax and Zakat deductions, etc. The certificate will also facilitate investors in filing their tax returns, the statement said.

With all details available through a single source, this newly-developed facility will enable shareholders keep track of returns on their investment and unclaimed dividends, if any, and maintain history of all cash benefits availed, besides many other features.