Daily Times

Karachi: Central Depository Company of Pakistan (CDC) has launched an eDividend Repository services to facilitate the process of eDividend. After the promulgation of the Companies Act 2017, it has become mandatory for all listed companies to process their dividends electronically.

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

CDC’s eDividend service is a free of cost service 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. 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.

Published in Daily Times, March 7^th 2018.