Maldives Securities Depository Fathimath Shafeega Chief Executive Officer.
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Transcript of Maldives Securities Depository Fathimath Shafeega Chief Executive Officer.
Maldives Securities Depository
Fathimath ShafeegaChief Executive Officer
Maldives
General Information
• Chain of nearly 1200 coral islands
• Capital Male’ 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
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
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.’’
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
Services
– Account registration
– Share deposit and withdrawal
– Share transfer
– Safe keeping
– Account information to investor & companies
– Clearing & settlement services (T+2)
Regulatory Framework
• Maldives Securities Act (2/2006)
• MSD Rules
• Clearing & Settlement Policy
• MSD System Policy
Transactions
Share transferred
Contract Note
Investors
Stock Exchange
MSD
Investors A/C
Shareholders List
How does the MSD work?
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
71
Clearing & settlement
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
Statistics of Accounts
MSD Accounts from (14.04.04 -16.08.07)
1043
3730
238540
0500
1,0001,5002,0002,5003,0003,5004,000
2004 2005 2006 2007
No.
of
Acc
ount
s
MSD Statistics
Shares Deposited at MSD as at 16.08.2007
MTCC1%
MTDC58%
BML38%
STO3%
Market Capitalization of MSD
MSD Market Capitalisation (14/04/04 - 16/08/07)
05,000
10,00015,00020,00025,00030,00035,00040,00045,000
2004 2005 2006 2007
Th
ou
san
ds
(R
f)
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
Thank You