Azleema Ahmed Deputy Manager Capital Market Development Authority (CMDA)

Maldives Securities Depository (MSD)  What is a MSD? MSD is the first Central Depository in Maldives It is an automated system which provides investors an efficient central clearing of securities for the securities traded on the Maldives Stock Exchange.

Maldives Securities Depository  Maldives Securities Depository (MSD) was incorporated on 14th April, 2004  MSD is housed within the CMDA  CDS rules is adopted by the Securities Act 2/2006

 Object – To speed up share trading and facilitate safe keeping of share  Services Account registration Share deposit and withdrawal Share transfer for trading Safe keeping Account information to investor & companies Maldives Securities Depository

How does the MSD work? SHARE CERT CDS Investor Directly Deposited

CDS Certificates Shares credited How does the MSD work?

Transactions Share transferred Contract Note Investors Stock Exchange MSD Investors A/C Shareholders List How does the MSD work?

MSD Investor “B” A/C Investor “A” A/C How does the MSD work?

MSD uses Direct A/C method  Merits Investors are more confident as securities are held under their name Easier to manage and minimise errors Direct transfer facility Easier to monitor the trading as first hand information on trading personnel Legally matters can be solved easily

Future Plans  Plan To provide Indirect account method To facilitate broker, custodian participation To facilitate settlement and Clearing for the securities traded To facilitate pledging of securities (lending and borrowing) To facilitated debt and other types of securities

MSD Goal Ultimate goal is to establish an efficient central depository system for clearing and settlement for the securities market in the Maldives To established a Dematerialized Market

MSD uses Direct A/C method  Demerits Difficulty in A/C opening Less people in the depository Information is not often updated to depository Difficulty in operation and handling of A/C.

Maldives Securities Depository (MSD) Thus we need to study and understand methods and procedures Learn best practices and knowledge of other developed Depositories and Clearing system so that we can develop and enhance the depository to achieve the ultimate goal. Corporation, assistance and expertise of sister depositories, institutions and member countries are very crucial. THANK YOU