CDBL to serve private firms too

CDBL to serve private firms too - cdbl services — CDBL to serve private firms too

The Central Depository Bangladesh Ltd. (CDBL) is set to extend its custodian role to non-listed companies, making it easier for them to transfer shares and obtain bank loans.

This move aims to ensure the security of shares of non-listed companies and prevent fraudulent transactions.

CDBL works as a custodian of shares of all listed and some non-listed securities kept in dematerialised form.

Following the new development, CDBL will work as a custodian of other non-listed companies registered with the Registrar of Joint Stock Companies and Firms (RJSC).

CDBL’s bylaws permit it to work as a custodian of eligible securities — listed or non-listed.

Dematerialisation improves the security, efficiency, and transparency of share ownerships by replacing vulnerable paper certificates with reliable electronic records.

This enables faster transfers and reduces administrative difficulties for both companies and shareholders.

Most importantly, electronic shares kept under the custody of the depository authority will enable companies to secure bank loans easily as the ownership records are clear, transparent and maintained centrally.

According to CDBL’s bylaws, CDBL shall determine the securities that are eligible to be held in dematerialised form, which may include, but is not limited to, listed and unlisted securities of all types, government bonds and treasury bills, mutual funds, commercial papers, certificates of deposit, and other debt instruments.

Apart from 637 listed securities, the depository authority presently works as a custodian of some non-listed securities, including open-ended mutual funds, securities of the bourses and the CDBL itself.

CDBL charges companies a fee for keeping shares under its custody.

The board of the depository authority is likely to fix a small custodian fee for non-listed companies so that they are inspired to avail themselves of the services of the CDBL, said CDBL’s Managing Director Md. Abdul Mutaleb.

As part of the move, CDBL will sit with the Institute of Chartered Secretaries of Bangladesh (ICSB) to inspire non-listed companies to seek the services.

As of June 2026, there are 316,150 entities registered with the Registrar of Joint Stock Companies and Firms (RJSC).

CDBL expects many of those companies to show interest in keeping their shares under its custody.

In Bangladesh, paper-based share certificates create various practical and security problems, particularly for shares of non-listed companies, ownership of which are not recorded through the electronic depository system.

Physical certificates can be forged, duplicated, stolen, or tampered with.

The transfer process for such shares is also lengthy and cumbersome, as companies need to verify certificates, signatures, transfer deeds, and their own shareholder records.

Any variation in signature may result in share transfer being rejected.

The share certificates can also be lost, damaged, and mutilated.

Moreover, when a shareholder dies, transferring physical shares to heirs can become complicated because the company involved must verify the original certificates, ownership records, and supporting legal documents.

CDBL’s decision to extend its custodian role to non-listed companies is a significant step towards improving the security and efficiency of share ownership in Bangladesh.