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

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

December CDBL signs agreement with Bangladesh Online Ltd (BOL) 2009 for enhancement of the company website using open source technologies. November CDBL adds CCTV cameras and Access Control Systems as 2009 a first step to security measure responding to increasing terrorism related threats and accidents. CDBL hosts 11th ACG Cross Training Seminar at PanJuly 2009 May 2009 Pacific Sonargaon Hotel, Dhaka, Bangladesh on July 3-4, 2009. On May 28, 2009 CDBL establishes a permanent base for Customer Service and Technical Support (CSTS) at the May 2009 Disaster Recovery Center . Activation of our Data & Disaster Recovery Center (DDRC) at Topekhana Road, Dhaka for live production functions on May 28, 2009. CDBL signs agreement with E.B.Solutions Ltd for SMS Alert Services for BO's on April 23, 2009. BO Account setup in CDBL surpass two million. CDBL completes five years of depository operations 90% threshold reached of stock exchange trades settled in the CDS BO accounts setup in CDBL surpass 1 million Dematerialized securities held in CDBL surpass BDTk. 100 billion Global Internet Securities Balance Enquiry and Portfolio Valuation Service for BO accountholders launched BO accounts setup in CDBL surpass 500,000 BO accounts setup in CDBL surpass 100,000

April 2009 January 2009 October 2008 June 2008 February 2007 January 2007 August 2006 August 2005 December 2004

January 2004

Dematerialization of equity market securities commenced with the entry of Square Pharmaceuticals Limited into the CDS Electronic Government Securities Registry (EGSR) live operation inaugurated by the Governor of Bangladesh Bank Became National Numbering Agency for ISIN (International Securities Identification Number) in Bangladesh Depository Registration Certificate awarded by the SEC Contract signed with the depository system provider CMC Limited CDBL Incorporated Request For Proposal (RFP) issued to implement the country's first automated Depository System Depository Regulation 2000 gazetted by the SEC Enactment of Depositories Act 1999

October 2003 February 2003 September 2001 July 2001 August 2000 June 2000 June 2000 June 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 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 Manual. 4 of the Securities must have the capacity to communicate reliably with CDBL in accordance with User

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 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 Issuers 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 Issuers Securities; Dematerialization request confirmed during the day; Pending requests for Rematerialization of Issuers 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

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; 6

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. 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. 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 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. Omnibus Account Normally the account will be in the name of the investor. If the participant is going to mix one investors 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.

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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

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:

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Send shares on T+0 from Collect shares Investors BO Participants Clearing Account Participants Clearing Account

Seller Participant

CDBL

Send shares on T+1 for Spot T+3 for A,B,G,N T+9 for Z T+5 for Foreign Trade

Buyer Participant

Collect shares and distribute to investors BO

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 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.

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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. 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.

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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 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

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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
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.

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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 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

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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 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.

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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 investors 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 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

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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 persons 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 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

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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. Confiscate In case of confiscate, the securities of that were pledged, are transferred to the pladgors 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.

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CDBL SMS Alerts Service

CDBL offers SMS Alerts to the Beneficiary details of Owner (BO)

Accountholders

mobile

phones

giving

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

FEES PAYABLE FOR DEPOSITORY SERVICES MINIMU S# TYPE OF FEES RATE OF M FEE FEES (Taka) Dematerialization TK 1. 5 Fee 0.00025 TK 2. Transaction Fee 5 0.00025 3. Custody Fee 0.050% p.a. 5

BASIS FEES

OF

PAYABLE BY

WHEN PAYABLE

MODE

Market Value of Securities Market Value of Securities Market Value of Securities Fixed monthly

Participants Participants /

Month end Month end Month end

P.O./Draft P.O./Draft

Account Holders Participants /

Account Holders

(calculated on a daily basis) Monthly advance in

P.O./Draft

4.

Depository Connection Fee

TK p.m.

500

fee first

for

the

Participants Issuers

P.O./Draft

Additional 5. Depository Connection Fee 6. Annual Face Issued Fee Value on of

connection Fixed monthly TK p.m. TK 25,000/TK 50,000/5,000 fee for each additional connection Fixed annually per Security fee Eligible Participants Issuers Issuer / Monthly advance Annually advance in in P.O./Draft

P.O./Draft

Eligible

Securities -Up to

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TK 5 crore -Above TK 5 croreto TK 20

crore -Above TK 20 crore

TK 100,000/TK 0.00025 Issue Price Issuers Participants Participants TK 0.10 100 Per share One fixed time, Direct Holders
Participant Issuer / Account Holder / Direct

7.

Fresh Issue / IPO Fee Rematerlization Fee Documentation Fee Application Fee for Statement Statement Verification Fee /

With Application Month end / P.O./Draft

/ Month end On account P.O./Draft

8.

Account

9.

TK 2,500/-

opening With application

P.O./Draft

10.

TK 10/-

Per page

Account Holder

Cash/PO/Draf t

SCHEDULE OF SECURITY DEPOSITS S# SECURITY DEPOSIT PAYABLE BY

AMOUNT

BASIS

WHEN PAYABL E On

MODE

1.

Full Service and Custody Participants

TK 200,000/-

One

time,

fixed,

signing of agreeme nt On P.O./Draft

refundable

2.

Trading and Settlement Agent Participants

TK

50,000/-

One

time,

fixed,

signing of agreeme nt On account opening 15 days before the eligibility date P.O./Draft P.O./Draft P.O./Draft

refundable

3. 4.

Direct Account Holders 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 TK TK TK TK

25,000/100,000/200,000/300,000/400,000/-

One

time,

fixed,

refundable One time, fixed per Eligible Security

TK 500,000/-

Importance of CDBL
Without any Depository, following shortcomings of settlement are faced:

Lengthy delays in delivery, settlement and transfer of securities;

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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 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.

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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 Bangladeshs 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 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.

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Bibliography

www.cdbl.com.bd Depository Act, 1999 Depository Regulations, 2000 Depository Regulations, 2003 CDBL Bye Laws

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