Introduction of the company
Central Depository Company of Pakistan Limited (CDC) was incorporated in 1993 to manage and operate the Central Depository System (CDS). CDS is an electronic book entry system to record and transfer securities. Electronic book entry means that the securities do not physically change hands and the transfer from one client account to another takes place electronically. An IBM led consortium along with the management of the company implemented CDS in Pakistan.
The aim of CDC is to operate as a central securities depository on behalf of the financial services industry so as to contribute to the country's ability to support an effective capital market system which will attract institutional and retail level investors from Pakistan and abroad.
Mission & Vision
The mission of CDC is to operate and maintain an electronic book entry settlement system for equity, debt and other financial instruments and to contribute to the country's ability to support and develop the Pakistani Capital Market as the hub of financial activities in the region. Our goals are to eliminate paper based settlement, to diversify our services, and become a leading institution of the region.
History of CDS Project
With exponential growth in the Pakistani Capital Market during the last decade resulting in manifold increase in trading volumes, the physical handling of paper certificates not only became laborious but also time consuming. The manual system was no longer feasible. It was in this perspective that CDC was incorporated to implement and operate the CDS.
Experts of the renowned international firm Price Waterhouse conducted a study in 1993 to develop a conceptual framework for the depository. The study was sponsored by the United States Agency for International Development (USAID) and their report laid the foundation of depository design.
In November 1994, the Board of CDC awarded a turnkey contract to the IBM consortium for the implementation of the system in Pakistan. The IBM consortium proposed a comprehensive Master Implementation Plan (MIP) to the CDC board after a detailed analysis of the following:
• National requirements
• Company and Banking laws
• Regulations & Procedures
• Financial and organizational aspects of the project
In April 1995, the CDC board approved MIP.Thereafter, user groups performed, training sessions were conducted to introduce the system to the clients and the necessary infrastructure was developed. The infrastructural development included testing and development of software, hiring and training of personnel and establishment of CDC offices. The CDC offices at Lahore and Islamabad were connected to the head office through VSAT link leading to the development of a geographically neutral depository.
Problems Faced by the Capital Markets before CDS
Since the last decade, the capital markets of Pakistan have witnessed a substantial growth leading to a manifold increase in the trading volume. The custody and safe keeping of physical certificates required maintenance of huge vaults by the individuals and institutions and the physical settlement of certificates was no longer feasible. Moreover, the manual system was also plagued by lengthy delays, risks of damage, forgeries and considerable time and capital investment.
Following is a list of the major problems faced by the Members of the Stock Exchange, Investors, Issuers of Securities and others are as follows:
a) Increased volume of book keeping and paper work.
b) Problems in settlement due to increased volume.
c) Maintenance of huge vaults for safe keeping of certificates.
d) Long and cumbersome share transfer procedure taking up to 45 days.
e) Payment of stamp duty on share transfers which ranged from 0.1% to 1.5% of the face value.
f) In case of new issues the issuers would take more than two months for the dispatch of
certificates
to the successful applicants and for the subsequent preparation and verification of transfer deeds.
g) Risks of damaged, lost, forged and duplicate certificates.
h) Lengthy and tedious procedure involved in pledging of physical securities.
i) Capital and time investment required for issue and dispatch of share certificates, cash dividend, bonus and right issues.
j) Issuance of duplicate certificates.
k) Activities carried out for share transfer during book closure:
• Signature verification
• Checking correct value of transfer stamps
• Verifying genuineness of certificates
• Signature of Director for confirmation of transfer
The answer to all these questions was to set up an electronic book entry system in Pakistan. This led to the establishment of Central Depository Company of Pakistan Limited developed
to manage and operate the Central Depository System (CDS).
Benefits of Electronic Settlement through CDS
Following are some of the benefits of electronic settlement of securities through CDS:
a) Reduced workload due to paperless settlement.
b) Reduced manpower and requirements.
c) Instantaneous transfer of ownership.
d) No stamp duty on transfers in CDS.
e) No risk of damaged, lost, forged or duplicate certificates.
f) No impact in case of sudden increase of settlement volumes.
g) Instant credit of bonus, rights and new issues.
h) Substantial reduction of paperwork during book closure.
i) Convenient pledging of securities.
j) Substantial reduction in time & capital investments.
Organizational Structure
Operations of the company are carried out by a team of high caliber professionals from a wide spectrum of relevant disciplines possessing graduate and postgraduate qualifications from distinguished local and international institutions. Based on operational needs, the company has seven departments namely:
1) Information Technology
2) Marketing & Customer Support Services
3) Operations
4) Finance
5) Human Resources & Administration
6) Investor Account Services
7) Internal Audit
All the departments report to the Chief Executive Officer with the exception of Internal Audit which principally reports to the Board of Directors but administratively reports to the Chief Executive officer.
TARGET POPULATION
The target population for this report is the manger of Information Technology department.
RESEARCH METHODOLOGY
My research is basically a pure research and fall in the category of descriptive research.
SAMPLING METHOD
SOURCES OF SECONDARY DATA
My secondary source of data is web sites.
SOURCES OF PRIMARY DATA
INTERVIEW
Name: Mr. Shafiq-UR-Rehman
Designation: Manager Project NCSS
Questions: -
- How do you design a job for a computer engineer?
- What are your job descriptions?
- How do you identify your specification?
- What are the minimum requirements for software engineer?
- Do you have any requirement of experienced?
- What’s your strategy about the type of job?
- Do you have any criteria of payment or you give according to skills?
- Do you have any gender discrimination?
Answers
Q#1 how do you design a job for a computer engineer?
ANSWER: -in the reply of this question he told me that their organization is very sensitive in a mean that they are dealing with the live data and for this they need highly qualified and well intellectuals people. So keep this thing in mind they design a job for software engineer.
Q#2 What are your job descriptions?
ANSWER: -In the reply of this question he gave me a list of job description mean they required following skills in a person in order to be a their employee.
- Assist the application analyst and design.
- Perform additional changes in application code.
- Prepare test case.
- Perform unit testing of the functionality developed.
- Perform technical and user documentation.
- Resolve day to day help desk queries and problem identified in the application.
- Perform Problem Reporting and Incident Reporting.
- Identify areas of improvement in the application.
- Any other relevant job assigned by the Project Team Lead.
Q#3 How do you identify your specification?
ANSWER: - It’s totally depended on the nature of the work like I want to give you example of last year. Last year we extended our IT department in order to do some web relevant work so we need atleast four people and at the mean time one of our employee went abroad for further studies. His seat was also vacant so last year we hired five people but this year there is no such requirement even for a single one.
Q#4 What are the minimum requirements for software engineer?
ANSWER: - our minimum requirement for the software engineer is a graduation in IT field from any reputable organization.
Q#5 Do you have any requirement of experienced?
ANSWER: - No such requirement of any experience. If any one has than we give preference to him/her other wise we normally hire fresh graduates.
Q#6 What’s your strategy about the type of job?
ANSWR: -As far as type of the job is concern we hire employee on full time bases.
Q#7 Do you have any criteria of payment or you give according to skills?
ANSWER: - No we have a criterion for the minimum wage but for the maximum one we give opportunity to employee than he/she can negotiate.
Q#8 Do you have any gender discrimination?
No we hire people on merit bases whether male or female. Once he/she fulfills
Our requirement we have to hire it.
CONCLUSION
After conducting this research I found that job designing is one of the most powerful tools for profit maximization and if we design job properly then it will directly contribute to our profit. Because job designing is the beginning of HR activity and if we take a right step at the beginning then our next HR activity will also be good.
RECOMMENDATIONS
One recommendation that I want to give this company that they must have an efficient HR manager that could have enough abilities to design a job for IT professionals insisted of IT manager.
BIBLIOGRAPHY
- Guideline provided by Cdr. (R) Azhar Nisar.
- Detailed interview with Shafiq-UR-Rehman (Project Manager )
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Website
INSTRUCTOR’S REMARKS
