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