Maldives Securities Depository (MSD) Pvt Ltd is a 90% owned subsidery of the Maldives Stock Exchange and 10% owned by the State Trading organisation Plc (STO). The Capital Market Development Authority (CMDA) licensed the MSD to operate the Central Securities Depository on the 23 January 2008.
MSD is governed by the Board of directors of consisting of 7 members.
Brief History
Maldives Securities Depository (MSD) was established on the 14th April 2004. MSD was a section of Capital Market Development Authority (CMDA). MSD is currently operated by
Maldives Stock Exchange Company Pvt Ltd.
In April 2002, the Maldives Monetary Authority (MMA) established a Securities Trading Floor (STF) to undertake the basic functions of a Stock Exchange. Within two years of the establishment of the STF a Central Depository System (MSD) was established to facilitate scripless share trading for the Maldives stock market.
The depository system was automated in September 2005 to ensure all transactions are executed in a safe and convenient manner. It also enhanced the information flow, streamlined MSD procedure and reduced paper work.
On 14th November 2006, a net clearing and settlement system for the dealing companies was introduced through a clearing bank. Furthermore, to minimize the risk and promote dematerialization and clearing-settlement system, a Payment Versus Delivery (PvD) mechanism was implemented.
MSD will further continue to develop and enhance its services, provide better and lower-cost services with the aim of developing a fully fledged stock market in the Maldives.
The Maldives Securities Depository (MSD) was privatised to form a Maldives Securities Depository Company pvt Ltd and Licesned by the CMDA on the 23rd January 2008. Thus the Securities Deposiotry, Clearing and Settlment service is provide by the MSD Copmany from 24th January 2008
Types and number of Participants
- Brokers: 9
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Clearing Bank: Bank of Maldives Plc
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Other: 8058 (number of accounts opened as at 31 March 2010)
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Issuing Companies: 4
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Dealers: 3
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Clearing & Settlement Banks: 1
Regulatory Environment
The MSD is governed by the Rules and Regulations made under the Securities Act 2/2006. The following Rules and policies are implemented to ensure smooth functioning of the depository operations.
1- Securities Depository Regulation
2- MSD Rules
3- Listing Rules
4- Clearing and Settlement policy
Stock Exchanges
- Maldives Stock Exchange Company Pvt Ltd
Other CSDs or clearing
organization in your country
CDS: No
Clearing Organization: Maldives Monetary Authority (Central bank) operating a clearing house for the commercial banks.
Services Provided
- Depository Services: The first Central Depository in Maldives using an efficient computerized system to hold shares in trust for the shareholders of quoted companies and process scripless transactions.
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Provide Securities Account Registration & account information to Dealers and Dealers representatives (broker), Issuing Companies and any legal entity or person who is able to trade shares through the Maldives Stock Exchange.
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Facilitate safe custody of share certificates and holds shares in trust for the shareholders.
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Securities Clearing and Settlement Service: Acts as the sole clearing and settlement house for the securities traded on the Maldives stock market.
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Provide book entry system and fund transfer through the settlement bank with a net settlement for the dealing companies
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Risk Management: Clearing Shortage funds, Payment Vs Delivery system, liquidity Margin Fund and Early shortage warning system
Eligible Securities
Corporate Action services
Provided? Yes/No (If yes, what kinds of services provided?)
Yes. Provides shareholders lists to the issuing companies.
Account statement for the shareholders to claim the cash dividends.
Value
of Securities in Custody (US$):US $ 11,398,630.89 (as at 31 March 2010)
Amount
of Cash Settled per annum (US$): NA
Percentage of Securities
Immobilized/ Dematerialized:7.18% of total issued shares (dematerialized)
Market Capitalization/
Trading volume per annum (US$):Market Cap: US$159,651,700.00
Total Revenue/ Expense
and Net income Per annum (US$):NA
Memorandum of Understanding/
Business Agreement (Date)
- Tripartite agreement with the Dealing Companies (AS, FO, ISB, SBM), Clearing Bank and the Maldives Securities Depository (MSD)
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Agreement with issuing companies:
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1- State Trading Organisation Plc (STO)→(February, 2007),
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2- Maldives Transport and Contracting Company Plc (MTCC)→(February, 2007),
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3- Bank of Maldives Plc (BML)→(March, 2007),
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4- Maldives Tourism Development Corporation Plc (MTDC)→(March, 2007),
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ACG Membership →(May, 2006)
Cross-Broader Transaction
(Counterpart)
NA
Withholding Tax Treatment
of Cross-Border Trading Transactions (Details)
NA
DVP Implementation (Yes/No)
No.
Settlement Period
T+ 2 settlement
Contact Information
Contact Person: Ameenullah Naseer / Senior Officer
Tel: (960) 330 6868
Email: msd@mse.com.mv
Fax: (960) 330 5034
Remarks
Statistics:
As at 31 March 2010 the number of accounts registered with the Depository is 8058. Current members of the MSD are 4 issued companies, 3 dealing companies and 7 dealers’ representatives / brokers.
The total no of shares in the depository is 710578 shares and market value of shares in the Maldives Securities Depository as at the end of 31 March 2010 stood at MRf.146,472,407 (US$ 11,398,630.89).
Goals and Challenges:
1- To establish a dematerialized system for the capital market.
2- To provide better and new services for the enhancement of the capital market.
3- To establish internationally accepted securities numbering system
4- To apply international best practices, know-how and technology to further develop and enhance.
