Opening of Client Accounts – Resident Body Corporates

There are several categories of institutional CDS accounts.

• Local Institutional accounts
• Margin Trading Accounts
• Collateral Accounts/Accounts for lending purposes
• Segregated Accounts

Local Institutions

1. A copy of the Certificate of Incorporation of the company. If the company has changed its name, a copy of the Certificate of Name Change issued by the Registrar of Companies is required.
2. A copy of the Articles of Association of the company.
3. An extract of the resolution passed by the Board of Directors to open the CDS account. Alternatively, the company may provide a certification in the relevant section in the account opening form (CDS Form 2)
4. A letter issued within 3 months by the Company Secretary indicating the names, addresses, NIC or Passport numbers and occupations of all existing directors.
5. A letter issued within 3 months by the Company Secretary confirming the Top Share Holders (names and addresses) up to a maximum of ten Share Holders.
6. For companies listed on the Colombo Stock Exchange, directors list and shareholders list are not applicable.
7. CDS Form 2  completed by the company in accordance with the provisions of the Articles of Association of the company and /or The New Companies Act (No.7 of 2007) of Sri Lanka. – Download Form
8. CDS Form 2(A)  completed by the company in accordance with the provisions of the Articles of Association of the company and /or the New Companies Act (No.7 of 2007) of Sri Lanka. – Download Form
9. CDS Form 2(B) – Download Form

Note: If an authorized person signs the CDS application form on behalf of the applicant company, A copy of the Power of Attorney/ Board Resolution authorizing such person to sign on behalf of the company is necessary. A copy of National Identity Card/Passport of such person should also be submitted.

Margin Trading Accounts

1. A copy of the Margin Trading Agreement.
2. The intention of the parties to open a margin trading account should be clearly stated in the Agreement.
3. A copy of the margin trading license granted to the margin trading provider.
4. If the borrower is a company, Certificate of Incorporation, Articles Association, names, addresses and passport numbers of the Directors, and names and addresses of the Top Ten Share Holders should be forwarded.
5. The borrower is an individual; a copy of NIC should be attached.
6. CDS Form 2 – Download Form
7. CDS Form 2(A) – Download Form
8. CDS Form 2(B) – Download Form

Note: The CDS forms should be completed and signed by the margin provider. The margin provider shall be the principal applicant.

Collateral Accounts/Accounts for lending purposes

(In the event listed securities are accepted by a bank licensed by the Central Bank of Sri Lanka when granting a facility to a shareholder)

• CDS Form 2  completed by the first (registered) owner. – Download Form
• CDS Form 2(A)  completed by the first (registered) owner. – Download Form
• CDS Form 2(B) – Download Form
• A certified copy of the agreement relating to the grant of the facility. (The intention of the parties to open a Collateral account should be clearly stated in the Agreement.)
• A copy of the Power of Attorney (POA) granted by the shareholder to the bank. (Alternatively, provisions in the POA may also be included in the Agreement).

Segregated Accounts

In the event a company requires to open a segregated account, the company should pass a resolution to that effect. This resolution should clearly indicate the purpose of the segregation. Such company should also clearly instruct the CDS the manner and title of such segregated accounts.

Ex: A B C Ltd. – Account No.1 & A B C Ltd. – Account No.2

Documentation Required:

• CDS Form 2  completed and signed by the applicant. – Download Form
• CDS Form 2(A)  completed by the applicant. (If the account to be opened under a Power of Attorney a certified copy of the same is required.) – Download Form
• CDS Form 2(B) – Download Form
• A copy of the resolution as mentioned above or a copy of the swift message.