1. Maldives Securities Depository Fathimath Shafeega Chief Executive Officer

2. Maldives

3. General Information Chain of nearly 1200 coral islands Male’Capital Male’ is 684 kilometers west of Sri Lanka. Population 300,000 people living in 200 islands. GDP real growth rate 18% Literacy rate is 98% Unit of currency is Rufiyaa Exchange rate is 12.85 to a US dollar

4. Capital Market in Maldives Securities Trading Floor was established in April 2002 and Maldives Securities Depository was formed in 2004 Maldives Securities Act 2006 Capital Market Development Authority was formed

5. Vision & Mission of MSD Vision ‘‘To be a leading national institution providing quality services to capital markets stimulating economic growth.’’ Mission ‘‘To provide secured and dependable clearing, settlement and depository services to the capital markets in an efficient and cost effective manner.’’

6. Goals & Objectives Enhance the confidence of investors in securities and enable them to follow- up their investments in securities with ease by establishing a central registry and safe-keeping of ownership of securities Reduce risks related to settlement of trading transactions in the Market

7. Services –Account registration –Share deposit and withdrawal –Share transfer –Safe keeping –Account information to investor & companies –Clearing & settlement services (T+2)

8. Regulatory Framework Maldives Securities Act (2/2006) MSD Rules Clearing & Settlement Policy MSD System Policy

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

10. Stock exchange (STF) MSD Trades Executed (T ) MSD Settlement Schedule ( T ) -Settles money to respective accounts - Authorised Settlement Schedule (T+2 ) Clearing Bank (BML) -Updates MSD Journal - Authorises trade Trading documents (T+2) Issuing company (X) Transfer details ( T+2 ) Dealing company (D) Bought / Sold notes (T+2) 2 3 4 5 6 7 1 Clearing & settlement

11. Spin-off In accordance with the Maldives Securities Act, MSD will be hived off from CMDA by January 2008. Challenge is to Spin-off as an independent autonomous institution which is in compliance with international best practices Currently applications are open to the private sector to set up a Central Depository Company

12. Statistics of Accounts

13. MSD Statistics

14. Market Capitalization of MSD

15. Future Plans –Full Dematerialized system –Facilitate pledging of securities (lending and borrowing) –Facilitate debt and other types of securities –Provide all the services of a depository in a developing market –Efficient book-entry Clearing and Settlement System –Implement a Surveillance system –Enhance Risk Management Measures –Electronic Initial Public Offering System (e-IPO) –More services & statistical data through the website –Provide support services to regulatory authorities

16. Thank You