The Central Depository System (CDS) is operated by the Colombo Stock Exchange and serves as the official electronic register of share ownership for all securities listed on the CSE. Every investor who wishes to buy or sell listed shares must have an active CDS account.
When you purchase shares through a stockbroker, the shares are credited to your CDS account — there are no physical paper share certificates for modern CSE-listed securities. Similarly, when you sell, shares are debited from your CDS account and transferred to the buyer's account.
To open a CDS account, investors typically apply through a licensed stockbroking firm (a CSE member firm). The process requires identity documentation and is normally completed within a few business days.
Your CDS account also serves as the record for all corporate actions affecting your holdings — dividends, rights issue entitlements, bonus share credits, and share split adjustments are all processed and reflected through the CDS.