CDBL

The Central Depository Bangladesh Limited (CDBL) is a Depository.

A depository is like a bank for shares instead of money. Instead of

holding shares in the form of certificates, investors have accounts

in the depository and are able to move securities and settle stock

exchange transactions by an electronic update of their accounts.

The core service of a depository is the efficient delivery, settlement

and transfer of securities through a computerized book entry

system.

CDBL has been registered as a Depository by the Securities and

Exchange Commission under section 4 of The Depositories Act

1999, and regulation 5 of The Depositories Regulations 2000.

CDBL is a company set up the banks, stock exchanges and other

institutions to operate the central securities depository in our

country.

Overview

Depository Bangladesh Limited (CDBL) was incorporated on 20 th

August 2000 sponsored by the country's Nationalized Commercial

Banks (NCBs), Investment Corporation of Bangladesh (ICB),

Private Commercial Banks (PCBs), Foreign Banks, Merchant Banks,

Publicly listed Companies, Insurance Companies and Dhaka &

Chittagong Stock Exchanges with the collaboration of the Asian

Development Bank (ADB). Legal basis for CDBL's operations is set

out in the Depositories Act 1999, Depositories Regulations 2000,

Depository (User) Regulations 2003, and the CDBL by-laws.

CDBL's core services cover the efficient delivery, settlement and

transfer of securities through computerized book entry system i.e.

recording and maintaining securities accounts and registering

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transfer of securities; changing the ownership without any physical

movement or endorsement of certificates and execution of transfer

instruments. The Central Depository System (CDS) operated by

CDBL has proved to be a convenient and reliable means to settle

securities transaction. The investor has been freed from the hassles

of physical handling of certificates, errors in paper work and the

risks associated with damaged, lost and forged certificates.

CDBL's operations are carried out in its Main Data Centre which is

linked to a remote Disaster Recovery Centre operating as a backup

with data update taking place simultaneously. Network

connectivity to Depository Participants, Issuers, Banks, Stock

Exchanges and Bangladesh Bank is through Front End interfaces

accessed by WAN link and dial-up telephone lines.

Live operations of the CDS commenced with the inauguration of

the Electronic Government Securities Registry (EGSR) by the

Governor of Bangladesh Bank on 20 th October 2003. The EGSR

also serves as a platform for secondary market sale/purchase as

well as Repo transactions of government securities to commercial

banks linked online to the CDS. Equity market securities

dematerialization process i.e. eliminating physical certificate as

record of security ownership by substituting it as an electronic

book entry record in the CDS commenced on 24 th January 2004

with the entry of Square Pharmaceuticals Limited into the CDS.

Since 14th February 2003 CDBL has been acting as National

Numbering Agency for International Securities Identification

Number (ISIN) as partner in Bangladesh of Association of National

Numbering Agencies (ANNA) based in Germany. CDBL is a

member of Asia Pacific CSD Group (ACG) and an associate member

of South Asian Federation of Exchanges (SAFE).

CDBL Milestones  

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December

2009

CDBL signs agreement with Bangladesh Online Ltd

(BOL) for enhancement of the company website using

open source technologies.

November

2009

CDBL adds CCTV cameras and Access Control Systems

as a first step to security measure responding to

increasing

terrorism related threats and accidents.

July 2009

CDBL hosts 11th ACG Cross Training Seminar at Pan-

Pacific Sonargaon Hotel, Dhaka, Bangladesh on July 3-4,

2009.

May 2009 On May 28, 2009 CDBL establishes a permanent base

for Customer Service and Technical Support (CSTS) at

the

Disaster Recovery Center .

May 2009 Activation of our Data & Disaster Recovery Center

(DDRC) at Topekhana Road, Dhaka for live production

functions on

May 28, 2009.

April 2009 CDBL signs agreement with E.B.Solutions Ltd for SMS

Alert Services for BO's on April 23, 2009.

January

2009 BO Account setup in CDBL surpass two million.

October

2008 CDBL completes five years of depository operations

June 2008 90% threshold reached of stock exchange trades settled

in the CDS

February

2007 BO accounts setup in CDBL surpass 1 million

January

2007

Dematerialized securities held in CDBL surpass BDTk.

100 billion

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August

2006

Global Internet Securities Balance Enquiry and Portfolio

Valuation Service for BO accountholders launched

August

2005 BO accounts setup in CDBL surpass 500,000

December

2004 BO accounts setup in CDBL surpass 100,000

January

2004

Dematerialization of equity market securities

commenced with the entry of Square Pharmaceuticals

Limited into the CDS

October

2003

Electronic Government Securities Registry (EGSR) live

operation inaugurated by the Governor of Bangladesh

Bank

February

2003

Became National Numbering Agency for ISIN

(International Securities Identification Number) in

Bangladesh

September

2001 Depository Registration Certificate awarded by the SEC

July 2001 Contract signed with the depository system provider

CMC Limited

August

2000 CDBL Incorporated

June 2000 Request For Proposal (RFP) issued to implement the

country's first automated Depository System

June 2000 Depository Regulation 2000 gazetted by the SEC

June 1999 Enactment of Depositories Act 1999

Eligible Securities

CDBL do not hold any physical share. Only the dematerialized form

of securities is considered eligible to be held in CDBL. In declaring

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any securities to be Eligible, CDBL shall be guided by all or any of

the following criteria:

Listing on a Stock Exchange;

Whether government or private debt Security;

The number of trades and the volume of that Security during

the immediately preceding three year period;

Investor interest in dealing in such Security;

Issuer of the Securities must have the capacity to

communicate reliably with CDBL in accordance with User

Manual.

Eligible Issuer

CDBL agree with issuers when their securities are to be made

eligible and The Securities And Exchange Commission (SEC)

publishes this information to the market. Once a listed security has

been declared an eligible security by the SEC such then securities

that are traded on an exchange:

Issuer must do the following after securities are declared as

eligible:

Provide an undertaking / opinion on the validity of the issue

and regulatory compliance;

Sign an agreement with CDBL in specified form or any other

form as may be mutually agreed;

Make initial deposits and pay initial fees as are specified in

the Fees and Deposits Schedule;

the Issuer in accordance with the User Manual within five Business

Days of the Record Date.

Communication with CDBL

Issuer needs to install a computer with the minimum capacity as

specified in the User Manual and Load such interface software as is

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supplied by CDBL onto that computer. The Issuer must carry out

addition, modification, upgrade or replacement of the hardware

and software as may be specified by CDBL at its own cost from

time to time.

CDBL shall provide the Issuer with access to the CDBL System to

download in accordance with the User Manual:

All information in respect of the Issuer’s Security as recorded

in the CDBL Register giving particulars of members and

status of their holdings detailing Securities under Pledge,

under Freeze, free balance, and total balance;

Pending requests for Dematerialization of Issuer’s Securities;

Dematerialization request confirmed during the day;

Pending requests for Rematerialization of Issuer’s Securities;

Rematerialization request confirmed during the day;

Corporate Actions setup during the day;

Corporate Actions processed;

IPOs processed during the day;

Securities that have been eliminated;

Report on cash and non-cash calculation for Corporate

Actions;

Report on cash entitlement for Corporate Actions.

Corporate Action

The Issuer shall advise CDBL of all Corporate Actions

simultaneously with the intimation to Stock Exchanges in case of

both listed Securities and unlisted Securities with prior notice of

seven Business Days from the Record Date. On receiving such an

advice, CDBL will provide the details of the Account Balances and

Account Holders to

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Depository Participants

The following types of organizations may become CDBL

participants:

Stock Brokers and Dealers (members of the Dhaka and

Chittagong Stock Exchanges);

Banks;

Financial institutions;

Insurance companies;

Statutory organizations;

Merchant bankers;

Asset managers;

Custodians; and

Any other Capital Market Intermediaries registered with the

Commission.

Participant Categories

Participants are divided into the following categories:

Trading Participant

Trading Participants May only settle stock exchange trades and

cannot maintain accounts on behalf of customers. Only stock

broker and stock dealer can be trading participant and can

maintain clearing account to settle transaction with the stock

exchanges.

Full Service Participant

This is a stock exchange member who may hold shares and operate

accounts of its own, on behalf of customers and maintain clearing

account as well.

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Custody Participant

Custody Participants may hold shares and operate accounts of their

own and on behalf of customers but is not a stock exchange

member. They can manage the clearing account of the stock broker

or dealer.

Settlement Agent Participant

Settlement Agent Participants may settle stock exchange trades on

behalf of stock broker or dealer. These agents must be approved by

the commission.

Communication with CDBL

The CDBL Participant needs to install such computers, printers,

communication equipment and uninterruptible power supply units,

systems software and any other equipment, hardware and software

specified by CDBL for CDBL related activities. The participant also

needs to upgrade or replace the same from time to time.

CDBL provides necessary Operating Instructions / User Manual

from time to time to the Participant, for effective and prompt

conduct of the business relating to depository operations.

Participant must procure and maintain at its own cost such

systems, procedures, means of communication, infrastructure,

hardware, software, security devices and back-up facilities. It also

needs to comply with all systems and procedures recommended by

CDBL and shall allow access to its systems to one or more teams of

professionals in the event of a problem with the interface with

CDBL.

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After establishing the interface, participant can communicate with

CDBL. Participant must ensure proper administration of passwords

and security access to the CDBL network so that no person has

access to that interface. Participants are to change the security

password once in a month as directed by CDBL. CDBL will give

prompt notice to the participant in case of any disruption in

communication. Participant will then take necessary step to resolve

the problem.

CDBL shall provide the Participant following reports for

downloading from its CDBL interface workstation:

Standing data relating to accounts maintained by that

Participant;

Balances on accounts maintained by that Participant;

The status of all such balances, e.g. frozen, pending demat

etc.;

All Transactions that have taken place on the account within

the last three months;

Pending and completed corporate actions;

Such other information as is specified in the User Manual.

CDBL Services

Account Opening  

Depository Participants and investors can open account with CDBL.

Where the account is in the name of the investor then the Law

provides that the account holder is a member of the company even

though his securities are dematerialized.

The participant is required (under the regulations) to provide

statements on at least a monthly basis if there are movements on

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the account. Even if there are no movements the participant must

provide a quarterly statement.

There are several types of accounts that CDBL maintains. They are

explained below:

Clearing Account

Clearing Account is opened for the purpose of settling market

obligations. When a security is sold, the seller participant transfers

the security to its clearing account. CDBL collects the security from

the account and send it to the buyer participants clearing account

on the basis of settlement cycle. Trading participant, custody

participant, settlement agent participant and full service

participant can operate clearing account to settle the transactions

in the stock exchanges.

Principal Account

Principal Account is opened for the purpose of holding its own

Securities available to all CDBL Participants. Trading participant,

custody participant, and full service participant can open this

account.

Customer Account

Customer Accounts are opened for the purpose of holding

Securities of Account Holders. Investors may open an account with

any CDBL participant. A person may open a Customer Account with

one or more CDBL Participants. Institutional investors may, if they

wish, open more than one account with a single CDBL Participant.

The participant will request the investor to sign an agreement

which will set out the rights and duties of both the investor and the

participant. The participant will then open an account for the

investor at CDBL. Full service participant and custody participant

can use this account to preserve securities in the name of their

investors.

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Omnibus Account

Normally the account will be in the name of the investor. If the

participant is going to mix one investor’s securities with another in

an omnibus account then this must be specifically stated on the

agreement. Full service participant and custody participant can

open this account.

Direct Accounts  

CDBL is offering a service to investors who wish to hold their

securities in dematerialized form but do not wish to use a

stockbroker or a bank to do so.

Investors will be asked, by CDBL, to complete an account opening

form. They will then be able to dematerialize existing holdings by

giving the certificates to CDBL or to their stockbrokers and

completing the dematerializations request form.

When they wish to sell their securities they should instruct CDBL in

writing to transfer the required number of securities to the

stockbroker. When they buy they should instruct their stockbroker

to transfer the securities to the Direct Account following the

settlement day. It is not necessary, in this case, to instruct CDBL.

CDBL will not handle funds and investors must make arrangements

to settle payments directly with their stockbrokers.

CDBL will issue statements directly to the account holder on a

monthly basis, if there are any movements and on a quarterly basis,

if there are no movements.

Pay In and Pay Out

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Pay In is the process of receiving shares from participants through

clearing account after investor has sold his shares. In case of Pay

In settlement cycle is T+0. It means seller participant must give the

share on the day of transaction has occurred.

Pay Out is the process of giving shares to the buyer participant

through clearing account after receiving those from the seller

participant through Pay In process. In this case settlement cycle is

T+3 for A,B,G and N category shares; T+1 for spot market shares;

T+9 for Z category shares and T+5 for foreign trade.

The Pay In and Pay Out process is shown in the following figure:

Dematerialization  

Dematerialization is a process by which physical certificates are

converted into electronic form.

Once a security is eligible for holding in CDBL then all stock

exchange trades must be settled through the depository. This

means that sellers must have securities in the depository (i.e. the

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CDBL

Participant’sClearing Account

Seller Participant

Send shares on T+0 from

Investor’s BOCollect shares

Participant’sClearing Account

Buyer Participant

Send shares on

T+1 for SpotT+3 for A,B,G,N

T+9 for ZT+5 for Foreign Trade

Collect shares and distribute to

investor’s BO

securities must have been dematerialized) before the broker can

execute the sale order.

To dematerialize securities investors should take their share

certificates to a participant. The participant will request the

investor to complete a dematerialization request form. The

participant will take the documents to the issuer who (if the

certificate is valid) will update the register by moving the securities

from the certificated portion of the register to the depository

portion. The issuer will then confirm the dematerialization to the

depository and the depository will credit the securities to the

investor's account.

The participant will be able to see the balances in all the accounts

that they control through a computer link with CDBL.

Investors do not need to wait until they wish to sell to dematerialize

their holdings. Once a security is eligible, investors may open

accounts and lodge securities at any time.

Rematerialization  

Rematerialization is a process by which Electronic shares are

converted into physical share certificates.

To rematerialize securities that are in a CDBL account the account

holder must instruct the participant through which he holds his

account by completing a rematerialization request form.

The participant will instruct CDBL and the securities will then be

debited from the account upon confirmation by the issuer.

The issuer will transfer the holding from the depository portion of

its register to the certificated portion of its register.

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The issuer will provide the investor with a share certificate within

30 days of rematerialization.

Off Market Settlement  

Off market settlement is no more in practice now. DSE has banned

this type of settlement. In this case, an Account Holder can transfer

Securities through the mechanism of a matched transaction.

An Account Holder may use this mechanism where:

1. Payment for a transaction is due to take place outside of the

Stock Exchange; or

2. For any other reason at the discretion of the Account Holder

and with the agreement of both Participants.

An investor who wishes to transfer Securities through the

mechanism of a matched transaction shall give a completed Off

Market Transfer Request Form . On receipt of an Form for either

receipt or delivery of Securities, the Participant shall enter the

Transaction into the CDBL system in accordance with the User

Manual.

Suspension of Account

Every Account Holder shall have an option to suspend his/her

Account with the CDBL. The CDBL Participant shall then suspend

the Account of an Account Holder maintained with it on written

instructions received by the CDBL Participant from the Account

Holder.

An Account Holder shall have an option to suspend the Account

either for buy or sell or both.

The CDBL Participant shall suspend the Account of an Account

Holder on written instructions received by it in this regard from

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CDBL pursuant to the orders of the Commission, or any order

passed by a court in this regard.

CDBL shall direct a CDBL Participant to suspend an Account

opened by the CDBL Participant with itself or suspend an account

itself in respect of Securities held by the CDBL Participant in its

own name:

1. On the orders of the Commission or any court in this regard;

and

2. If the CDBL Participant becomes insolvent, bankrupt or in

case of a body corporate being wound up.

An Account Holder may suspend his Account by making an

application to his CDBL Participant on the Account Suspension

Request Form as specified in Form 03. On receipt of the Account

Suspension Request Form, the CDBL Participant shall accept the

request and suspend the account in accordance with the User

Manual / Operating Instruction.

Release of Suspension

The suspended Account may only be released on the instructions of

the authority under whose directions such Account was suspended.

An Account shall be released on instructions in writing from an

Account Holder, where it has been suspended at the instance of the

Account Holder, and on receipt of instructions from CDBL pursuant

to the passing of any order of suspension by the court or the

Commission.

An Account Holder may release the suspension by making an

application to its CDBL Participant on the Account Suspension

Release Request Form.

Freeze of Account

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Every Account Holder shall have an option to freeze securities in

his account with the CDBL Participant so as to render it inoperable

for a period of time. The CDBL Participant shall freeze the

Securities of an Account Holder maintained with it on written

instructions received by the CDBL Participant in that regard from

the Account Holder.

The Account Holder shall have an option to Freeze the full or

partial amount of any Security holdings.

The Freeze may specify a specific period for the freeze. Once the

specified period has expired the Freeze shall be automatically

released. If no period is specified, the Freeze shall only be released

when the Issuer confirms the acceptance of a Freeze Release.

The CDBL Participant shall freeze the Securities of an Account

Holder on written instructions received by it in this regard from

CDBL pursuant to the orders of the Government, the Commission,

or any order passed by a court, tribunal, or any statutory authority

in this regard.

Release of Freeze

Where the Freeze is established for a specified period of time, then

the Freeze will be automatically released at the end of that period

without further action by the Account Holder, the Participant or the

Issuer.

In other cases the frozen Account may only be released on the

instructions of the authority under whose directions such Account

was frozen. An Account shall be released on instructions in writing

from the Account Holder, where it has been frozen at the instance

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of an Account Holder, and on receipt of instructions from CDBL

pursuant to the passing of any order of freezing by the court,

tribunal or the Commission. An Account Holder may release the

Freeze by making an application to its CDBL Participant on the

Freeze Release Request Form as specified in Form.

Change of Ownership

Transfer

Transfer means moving Securities from one Account to another

within a single CDBL Participant or to another CDBL Participant.

An account holder must fill in a Transfer Request Form to transfer

their securities, and then submit the form to their CDBL

Participant.

Transfer to Linked Account

An Account Holder who wishes to transfer Securities from his

Account to a Linked Account with another Participant shall give a

completed Transfer Request Form as specified in Form to his

Participant or to CDBL if he is a Direct Account Holder. The

Participant or CDBL, as appropriate, shall enter the Transaction

into the CDBL System in accordance with the User Manual.

On the Settlement Date specified in the Transaction, the Securities

will be debited from the balance in the Account managed by the

Participant who enters the transaction and credited to the Linked

Account.

 Single Sided Transfer

An Account Holder who wishes to transfer Securities, without a

Stock Exchange trade, from his Account to another Account with

the same Participant or to an Account with another Participant

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shall give a completed Transfer Request Form to his Participant or

CDBL as the case may require.

This type of transaction may be used by:

(a) Direct Account Holders to transfer Securities to the

Clearing Account of their Stock Broker; or

(b) By any Account Holder to make a transfer to another

account at his discretion.

CDBL Participants shall ensure that the proposed transfer has the

appropriate approval of the Commission as required prior to

entering the transaction into the system. On receipt of a valid

Transfer Request Form, the Participant or CDBL, in the case of

Direct Accounts, shall enter a Transaction into the CDBL System in

accordance with the User Manual.

On the Settlement Date specified in the Transaction, the Securities

will be debited from the balance in the delivering Account and

credited to the receiving Account.

Transfer from Suspense Account

Issuer may open suspense account with a CDBL participant where

the unclaimed bonuses are preserved. When investor claims his or

her bonus share to the company, the company directs the

participant to transfer the specified number of shares to his or her

BO account. Participant communicates with CDBL to transfer the

shares to the specific investor’s BO account.

Transmission

Transmission means the Transfer of all Account Balances of an

Account Holder to another Account. In order for the Account

Holder to perform a Transmission, they must first fill in a

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Transmission Request Form and then submit it to their CDBL

Participant.

Account Holders may instruct their Participant or CDBL, in the

case of Direct Accounts, to transfer all the holdings in their account

to another account by submitting a completed Transmission

Request Form. After receiving a valid Transmission Request Form,

the Participant will enter the Transaction into the CDBL System in

accordance with the User Manual. Participants must ensure that

the proposed transmission has the appropriate approval of the

Commission / Stock Exchange.

On the Settlement Date specified in the Transactions, all balances

will be debited from the balance in the delivering Account and

credited to the receiving Account.

Transmission on Death

Every Account Holder will inform CDBL Participant the name of

nominee who will be the owner of the securities of the account

holder after the death of him at the time of opening an Account

with or at any time. Where any Account is opened or stands in the

names of two or more persons, the nomination in favor of such

nominee shall be made jointly by all such persons.

In the event of the death of the Account Holder, the Securities that

he owns shall vest in the nominee. If such nomination is not made,

succession to such Securities shall be determined in accordance

with law in favor of the heirs.

Gift

Investor may transfer to another person’s BO account as gift. In

this case investor must fill up prescribed form and provide it to his

participant. If the person has blood relation to who share is gifted,

intimation must be taken from stock exchange. If there is no blood

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relation exists, intimation from SEC and stock exchange must be

taken.

Pledging  

Account Holders may use the shares in their depository accounts as

collateral against a loan.

The pledgee must be a participant or a depository account holder.

The Pledgor gives instructions to his participant to pledge his

shares to the pledgee. The Pledgee must confirm acceptance of the

pledge.

The shares are then ‘frozen' in the account of the pledgor and

cannot be moved until instructions are received from the pledgee.

The instruction from the pledgee may be to ‘release' the pledge (for

example if the loan has been repaid) or to move the shares to his

own (or a third party) account (for example, if the pledgor has

defaulted on his repayments).

As the shares remain in the account of the pledgor (although

frozen), the pledgor will receive all benefits (e.g. dividends and

bonus issues) and will still be able to vote.

Unpledge

Pledgee can upledge the securities. The Pledgor shall request

cancellation of the Pledge by forwarding an Unpledge Request to

his CDBL Participant. On receipt of the URF, the CDBL Participant

of the Pledgor shall electronically register the cancellation request

with CDBL.

Upon acceptance of the unpledge request by the Pledgee as

advised by his CDBL Participant, CDBL System shall electronically

unmark / release the lien on the Securities no longer pledged.

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Confiscate

In case of confiscate, the securities of that were pledged, are

transferred to the pladgor’s account. The Pledgee may confiscate

the pledged securities by forwarding a Confiscate Request to CDBL

through his CDBL Participant. CDBL will transfer the Securities

from the pledgors Account subject to satisfactory instructions of

the Pledgee.

BO Account Balance Enquiry Service  

CDBL offers Web based BO Account Balance Enquiry Service to the

Beneficiary Owner (BO) Accountholders giving details of Share

holdings with Portfolio Valuation of their BO Accounts. Investors

must register online to get this service at fee of Taka 200.

CDBL SMS Alerts Service  

CDBL offers SMS Alerts to the Beneficiary Owner (BO)

Accountholders mobile phones giving details of debit-credit

transactions that have taken place in their accounts.

To register for the SMS Alerts Service BO Accountholders may

download the SMS Alerts Registration form, fill it up and send it

back to CDBL with onetime registration fee of Taka 200.

Fees and Charges

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FEES PAYABLE FOR DEPOSITORY SERVICES

S# TYPE OF FEES RATE OF MINIMU

M

BASIS OF

FEES PAYABLE BY

WHEN

PAYABLE MODE

FEES FEE

(Taka)

1. Dematerialization

Fee

TK

0.00025 5

Market Value

of SecuritiesParticipants Month end P.O./Draft

2. Transaction Fee TK

0.00025 5

Market Value

of Securities

Participants /

Account Holders Month end P.O./Draft

3. Custody Fee 0.050%

p.a. 5

Market Value

of Securities

Participants /

Account Holders

Month end

(calculated on

a daily basis)

P.O./Draft

4. Depository

Connection Fee

TK 500

p.m. -

Fixed monthly

fee for the

first

connection

Participants /

Issuers

Monthly in

advance P.O./Draft

5.

Additional

Depository

Connection Fee

TK 5,000

p.m. -

Fixed monthly

fee for each

additional

connection

Participants /

Issuers

Monthly in

advance P.O./Draft

6. Annual Fee on

Face Value of

Issued Eligible

Securities -Up to

TK 5 crore -Above

TK 5 croreto TK 20

crore -Above TK 20

crore

TK

25,000/-

TK

50,000/-

TK

100,000/-

-

Fixed

annually fee

per Eligible

Security

Issuer Annually in

advance

P.O./Draft

7. Fresh Issue / IPO

Fee

TK

0.00025 - Issue Price

Issuers /

Participants

With

Application /

Month end

P.O./Draft

8. Rematerlization

Fee TK 0.10 100 Per share

Participants /

Direct Account

Holders

Month end P.O./Draft

9. Documentation

Fee TK 2,500/- -

One time,

fixed

Participant /

Issuer / Direct

Account Holder

On account

opening P.O./Draft

10.

Application Fee

for Statement /

Statement

Verification Fee

TK 10/- - Per page Account HolderWith

application

Cash/PO/

Draft

SCHEDULE OF SECURITY DEPOSITS

S# SECURITY DEPOSIT PAYABLE BY AMOUNT BASIS WHEN

PAYABL

E

MODE

1. Full Service and Custody Participants TK 200,000/- One time, fixed, On P.O./Draft

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refundable

signing

of

agreeme

nt

2. Trading and Settlement Agent Participants TK 50,000/-One time, fixed,

refundable

On

signing

of

agreeme

nt

P.O./Draft

3. Direct Account Holders TK 25,000/-One time, fixed,

refundable

On

account

opening

P.O./Draft

4. Issuers based on Face Value of Issued Eligible

Securities -Up to TK 5 crore -Above TK 5 crore

up to TK 12.5 crore -Above TK 12.5 crore up to

TK 25 crore -Above TK 25 crore up to TK 50

crore -Above TK 50 crore

TK 100,000/-

TK 200,000/-

TK 300,000/-

TK 400,000/-

TK 500,000/-

One time, fixed per

Eligible Security

15 days

before

the

eligibilit

y date

P.O./Draft

Importance of CDBL

Without any Depository, following shortcomings of settlement are

faced:

Lengthy delays in delivery, settlement and transfer of

securities;

Tedious procedures for verification of securities and transfer

deeds;

Considerable time involved in dispatching cash dividends and

bonus shares;

Risk of damaged, lost, forged and duplicate securities;

Serious problems associated with physical custody;

Tedious procedure involved in pledging of physical securities

to raise capital.

CDBL, by converting physical certificates into electronic form, will

eliminate the risks of damaged, lost, forged and duplicate share

certificates. The instantaneous delivery through electronic book

entry will result in immediate transfer of ownership, which

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presently can take over a month. CDBL, in the long term, will also

reduce the costs of the investing public.

Investors will enjoy many benefits in buying and selling shares in

the depository mode, such as:

Instantaneous transfer. No delays in delivery, settlement or

transfer

Elimination of risks associated with physical certificates such

as fake, duplicate shares, protection against loss, mutilation

or theft of share certificates etc.

Reduced hassle of paper work

Faster settlement cycles

Convenient method of consolidation of folios / accounts;

Holding investments in equity, debt instruments and

Government Securities in a single account

Speedy disbursement of non-cash corporate action benefits

like bonus and rights into investors accounts

Electronic credit of new issues (IPO) into investors accounts

Regular account status updates available to investors at any

point of time.

Conclusion

CDBL) is a dynamic, forward looking institution committed to adding value to the

business of its clients. It is equipped with up-to-date Information Technology to

ensure prompt customer response and provide innovative solutions to the needs of the

capital market playing a pivotal role in Bangladesh’s financial services sector.

CDBL is a virtual warehouse where all the electronic shares and

securities are kept. Under this system CDBL, Issuer and Depository

Participants work as a team. Investors are able to hold their securities in

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dematerialized form in a CDBL account. This removes the problems associated with

physical certificates. This system has eliminated the risks of damaged,

lost, forged and duplicate share certificates as well as ensured

security and improved efficiency.

Bibliography

www.cdbl.com.bd

Depository Act, 1999

Depository Regulations, 2000

Depository Regulations, 2003

CDBL Bye Laws

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