If you are investing in the Pakistan Stock Exchange (PSX), understanding how your shares are stored is vital for asset security. All shares in Pakistan are electronically housed by the Central Depository Company (CDC).
As an investor, you generally interact with two types of accounts: the CDC Sub-Account and the CDC Investor Account (IAS).
What is a CDC Sub-Account?
When you open a brokerage account, a CDC Sub-Account is automatically created for you. This is the primary account used for day-to-day trading.
Settlement Cycle: When you purchase stocks, they are transferred to your Sub-Account on a T+2 basis (2 working days after the trade).
Notifications: The CDC will send an automated email confirmation once the shares are successfully moved to your account.
Management: This account is managed by your broker on your behalf, allowing them to execute buy and sell orders.
Verification: You can (and should) set up your own login on the CDC Access portal to view your holdings independently of your broker’s app.
What is a CDC Investor Account (IAS)?
The Investor Account Services (IAS) is a premium custody solution for long-term investors who want maximum control and security.
Direct Ownership: Unlike a Sub-Account, the IAS is solely operated by the investor. The broker has no authority over this account.
Opening an IAS: You can open this account directly via the CDC portal by submitting your KYC (Know Your Customer) documents and proof of income.
Long-Term Strategy: This is ideal for "Gold" stocks you intend to hold for 5+ years, as it protects shares from any potential broker-related risks.
Key Differences: Sub-Account vs. IAS
Feature | CDC Sub-Account | CDC Investor Account (IAS) |
Control | Broker & Investor | Investor Only |
Best For | Active Trading / Short-term | Long-term Wealth Building |
How to Sell | Sell directly via Broker app | Must transfer back to Sub-Account first |
Setup | Automatic with Broker | Manual via CDC Portal |
How to Move Shares to your IAS Account
If you have purchased shares for the long term and want to move them to your IAS account for safekeeping:
Request Transfer: Contact your broker via their registered email.
Use a Template: Most brokers provide a specific "Sub-Account to IAS Transfer" form.
Specify Details: Mention the Company Name, Symbol, and the exact quantity of shares.
Reversing the Process: To sell these shares later, you must initiate a transfer from your IAS back to your Sub-Account.
Summary: Is Your Investment Safe?
Yes. Because your shares are held with the Central Depository Company, your investment remains secure even if your brokerage faces issues. By utilizing the CDC portal and considering an IAS account for long-term holdings, you maintain full transparency and control over your financial future.