Everything about CDP in Singapore.

Investing in Singapore’s stock market can feel daunting at first—especially when you come across acronyms like CDP. But understanding the Central Depository Pte Limited (CDP) is critical if you want to hold and manage SGX-listed securities securely and efficiently. Before you dive in, you might want to set clear financial goals and run some numbers using a Finance Calculator or figure out how much you need to stash away with a Savings Calculator.

What Is the CDP?

The Central Depository Pte Limited (CDP) is a wholly-owned subsidiary of the Singapore Exchange (SGX), established in 1987. It serves as the backbone of Singapore’s securities market by providing:

  • Equities (Stocks)
  • Fixed Income Securities (Bonds) – (try our Bond Calculator if you need to model yields versus prices)
  • Real Estate Investment Trusts (REITs)
  • Exchange-Traded Funds (ETFs)
  • Other Listed Securities

By holding all these instruments in a central, electronic system, CDP streamlines how trades clear, settle, and are recorded.

The Core Role of CDP

  1. Centralized Depository
    Rather than dealing with physical share certificates, CDP uses a book-entry system: your securities live electronically in a CDP account in your own name.

  2. Clearing & Settlement
    Buy or sell on SGX? CDP’s the central counterparty that ensures securities and cash swap hands smoothly—usually on T+2 (two business days after trade date).

  3. Safekeeping
    With assets in CDP, you sidestep the counterparty risk of leaving everything with your broker.

  4. Corporate Actions Processing
    Dividends, rights issues, bonus shares—CDP handles distribution directly to you. To see how these payouts affect your returns, check out our Dividend Calculator or explore dividend growth scenarios with our Dividend Growth Calculator.

How Does CDP Work for You?

  1. Open a CDP Securities Account
    When you set up a brokerage account, you’ll typically open a linked CDP account in your name.

  2. Link to Your Broker
    This link lets your broker execute trades and move securities in and out of your CDP account on your behalf.

  3. Buy Securities
    On settlement day, your newly purchased shares show up in CDP—this marks the start of your holding period. Want to project future outcomes? Use our Investment Calculator or model compound returns with our Compound Growth Calculator.

  4. Hold and Monitor
    Your stocks, bonds, or ETFs sit safely in CDP. Track their growth, reinvest dividends, and gauge long-term value with a Future Value Calculator or by estimating present worth via a Present Value Calculator.

  5. Receive Dividends & Rights
    CDP records determine who gets paid—and when. If you’ve signed up for Direct Crediting Service (DCS), dividends go straight into your bank; otherwise, cheques are issued, and you might earn a bit of interest on your idle cash (see our Interest Calculator).

  6. Sell Securities
    Sold your shares? On settlement, they’re debited from CDP. Calculate your gains or losses using our ROI Calculator, and across multiple trades, track performance with the Average Return Calculator.

CDP Direct Account vs. Nominee/Custodian Account

Feature CDP Direct Account Nominee/Custodian Account
Legal Ownership You (direct legal title) Broker (you’re beneficial owner)
Corporate Actions Paid directly to you Handled via broker
Holdings Consolidation All SGX securities in one place Segregated by broker
Use Cases Local stocks, REITs, ETFs Foreign stocks, some ETFs
Key Consideration Maximum transparency & safety May offer lower fees or access to overseas markets

Many investors combine both, depending on whether they’re buying local Singapore securities (via CDP) or overseas assets (via nominee).

Key Benefits of the CDP System

  • Direct Ownership – Clear legal title to your SGX investments.
  • Safety & Security – Eliminates risks of lost certificates or broker insolvency.
  • Efficiency – One-stop clearing, settlement, and corporate actions.
  • Convenience – All your SGX holdings in a single account.
  • Transparency – Easy, centralized transaction history and statements.

The CDP is the unsung hero of Singapore’s capital markets. It guarantees that when you trade, hold, or receive corporate entitlements, everything runs like clockwork—safely, efficiently, and transparently. By pairing your CDP knowledge with the right planning tools (whether a Savings Calculator or a Compound Interest Calculator), you’ll be well-equipped to make informed decisions and chart a successful investment journey in the Lion City.