Daily Times

KARACHI: Central Depository Company (CDC) has made it mandatory for account holders 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 dividends directly into the bank accounts of their shareholders electronically. For companies to comply with the requirement and to make the process efficient, it has become mandatory that the IBAN of investing public are available to facilitate payment of cash dividends in electronic mode, a statement by the CDC said.

The amendment would 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 practices, the statement said.

CDC 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, by October 31.

Published in Daily Times, October 20^th 2017.