KARACHI, (UrduPoint / Pakistan Point News – 12th Aug, 2022 ) :Central Directorate of National Savings and Central Depository Company of Pakistan Limited signed a memorandum of understanding for mutually collaborating to convert and issue National Savings Certificates in digital form to reduce physical process flows of different transactions and develop a systematic framework. Through this system NSCs could be inducted into the Central Depository System, said release on Friday.
Director General of CDNS, Hamid Raza said the initiative was in line with CDNS’s ultimate objective of the digitization of National Savings Certificates.
The recent circumstances with the shift to digitization make it all the more exigent for CDNS to undergo complete digital transformation.
This platform would facilitate investors of National Savings Certificates, making it easier for them to invest in and maintain their NSCs in electronic format promoting and harvesting the savings culture in Pakistan at the grass root level, he said.
He said “The pivotal role of innovation in economic development is undeniable, with advancements in Fintech leading the change.” “Innovative tech-based processes can lead to higher productivity, reduced turnaround times, lower costs and wider outreach.” Speaking of the objectives of the project, CEO-CDC Badiuddin Akber said that the core objective of establishing a Depository in Pakistan was to dematerialize all types of financial instruments in Pakistan.
Considering this as our ultimate vision, we have dematerialized almost all types of securities in Pakistan; however, National Savings Certificates were one major aspect yet to be dematerialized.
As the Depository, we feel that it was our National duty to bring our processes at par with the international best practices, and it was indeed the need of the hour that a mechanism must be developed for investors to have NSCs in book-entry form, he said.
CDC Chief said through this project, CDC would facilitate Investors, with investment in a diverse array of securities, to maintain their complete portfolio of dematerialized securities in a single account at CDC.
This project would eliminate the risk of theft, loss, mutilation, etc. as well as the hassle of printing, dispatching, maintenance, etc. of physical certificates by maintaining the NSCs in electronic format in the CDS.
CDC would extend the same benefits to CDNS investors as it currently provides to investors of book-entry securities in the CDS, including easy, efficient and secure transfer process for certificates, online account access and pledging facilities.
At present, CDC Account can be opened through CDC offices or through digital portal of CDC from anywhere in Pakistan; however, both organizations will also work on the possibility of opening CDC accounts through the nationwide network of CDNS offices in order to make it more convenient for investors to open a CDC Account and hold National Savings certificates in digital form.