Stock trading was started in 2002 and the transfer of shares was a cumbersome procedure as the physical certificated has to be handed over by the seller and sent to the issuer. The issuer will make the transfer and a physical certificate for the buyer will be issued.
Thus to speed up the share trading the first Central Securities Depository was started as the Maldives Securities Depository (MSD) on the 14th April 2004 under Capital Market Development Section / MMA. The MSD was manually started to provide scripless trading for the shares traded on the stock market. On 2005 the MSD was computerized to streamline the back office function. The Clearing and settlement function was implemented on 2006 with the payment vs delivery system for T+2.
In January 2006 the Securities regulator was established as the Capital Market Development Authority (CMDA).Hence the MSD was operated by the regulator (CMDA) until the depository was licensed on 23rd January 2008 forming the Maldives Securities Depository Company Pvt Ltd.
BENEFITS OF MSD
1. Safe keeping of shares
MSD FACILITIES
1. Provide Securities Account Registration.
2. Facilitate share deposits and withdrawals.
3. Provide account holders information.
4. Facilitate share trading and transfer without certificates.
5. Safe custody of share certificates.
