Glossary · PSX Mechanics
Central Depository Company
The institution responsible for maintaining electronic records of securities ownership in Pakistan. All PSX-traded shares are held in dematerialised form through the CDC. Investors access their holdings via a CDC Investor Account or through their broker's sub-account.
01—What is Central Depository Company?
The definition — and what it means in practice.
Central Depository Company (CDC) is the institution that maintains Pakistan’s electronic record of who owns listed securities. Shares traded on the Pakistan Stock Exchange (PSX) are held in dematerialised (paperless) form through the CDC rather than as physical certificates. Investors can hold securities either in a CDC Investor Account in their own name or through a broker’s CDC sub-account, where the broker operates the account on the investor’s behalf.
CDC matters because it is the “back-office” layer that makes modern trading practical and safer. When you buy or sell PSX shares, the ownership changes are ultimately reflected in CDC records, supporting orderly settlement and reducing risks linked to paper certificates (loss, forgery, delays). The type of CDC holding you use (Investor Account versus broker sub-account) affects how you view and manage holdings, and how smoothly corporate actions are credited.
If you own 100 PSX shares, CDC is the system that shows those 100 shares belong to you electronically, not as a paper certificate.
- CDC maintains electronic ownership records for Pakistan’s dematerialised securities.
- All PSX-traded shares are held in demat form through CDC, not physical certificates.
- Holdings are accessed via a CDC Investor Account or a broker’s CDC sub-account.
- CDC records support safe transfer of ownership when trades settle.
02—How central depository company works on the PSX
The Pakistan-specific rules, conventions, and numbers.
On the PSX, trading, clearing, and custody are separate parts of the market infrastructure. The PSX is the trading venue; trades clear through the National Clearing Company of Pakistan Limited (NCCPL); and shares are held electronically at the Central Depository Company (CDC). This separation helps investors understand where different risks sit: price discovery happens on the exchange, while ownership records sit with the depository.
As a PSX investor, you typically encounter CDC through how your shares are held and shown on statements. If you trade using a broker, your shares may sit in the broker’s CDC sub-account, while some investors choose a CDC Investor Account for direct visibility of their holdings. Either way, the CDC record is what ultimately evidences your ownership when shares move after a trade and when corporate entitlements are credited.
03—Common misconceptions
Where investors most often get this wrong.
CDC is a broker that buys and sells shares for me.
CDC is not a trading firm. It is the depository that keeps the electronic ownership record of dematerialised securities; trading is done through a broker on the PSX.
I must have a CDC Investor Account to invest on the PSX.
You can hold shares either in a CDC Investor Account or through your broker’s CDC sub-account. Both routes still rely on CDC for the underlying electronic record.
If my broker’s app shows my shares, CDC does not matter.
Broker screens are a front end. The definitive ownership record for dematerialised PSX shares is maintained through CDC, which supports transfers and entitlements.
04—Using central depository company on BSL
Where this term shows up across the platform — with live data.
- View your holdings and trades in one place on Stocks.
- Track upcoming corporate action dates using Ex-Dates.
- Learn the end-to-end trade process in our Settlement glossary.
- Understand account options via Sahulat Account.
05—Frequently asked questions
What investors ask about central depository company on the PSX.
Frequently Asked Questions
The Central Depository Company (CDC) maintains electronic records of securities ownership in Pakistan. PSX-traded shares are held in dematerialised form through CDC, and investors access holdings via a CDC Investor Account or a broker’s CDC sub-account.
PSX-traded shares are held electronically in dematerialised form through the Central Depository Company (CDC). Physical share certificates are not the normal form for holdings traded on the exchange.
A CDC Investor Account is an account where securities are held in the investor’s own name at CDC. A broker sub-account is maintained under the broker’s umbrella at CDC, with the broker operating it for the investor. In both cases, the securities are ultimately recorded through CDC.
Settlement is when bought shares and sold shares are transferred and finalised. On the PSX, trades clear through NCCPL, while shares are held electronically at CDC. CDC’s records are the layer that reflects the resulting ownership positions after trades settle.
CDC is part of the infrastructure that supports the crediting of entitlements for dematerialised holdings. If you hold shares through a CDC Investor Account or a broker sub-account, your entitlements are processed against those electronic holdings when corporate actions are applied.
06—Related terms
Keep building the picture.
The conversion of physical share certificates into electronic form. All PSX-listed securities are held in dematerialised form through the CDC.
The process of completing a trade by transferring shares to the buyer and cash to the seller. The PSX has moved toward a T+1 settlement cycle, meaning most trades are finalised one business day after the trade date.
The entity responsible for clearing and settlement of trades executed on the PSX. Ensures that both the buyer and the seller receive shares and payment upon settlement of the trade.
A licensed member of the stock exchange who executes buy and sell orders on behalf of clients and may also provide investment advice. All PSX stockbrokers must hold a valid TREC and be registered with the SECP.
A unique identification number assigned to every investor registered on the PSX. Required to trade on the exchange. Issued by a licensed broker upon account opening.
A simplified, low-cost brokerage account introduced by the PSX to encourage new and small investors to participate in the stock market. Designed with minimal documentation requirements and a straightforward fee structure.
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