The Maldives Securities Depository functions as a Depository to hold shares in trust for the shareholders of quoted companies, process transactions of the Stock Exchange and act as a safe keeper of quoted securities.
MSD system records and transfers shares of the quoted companies. Through MSD, securities are transferred from one client account to another by a mere book entry, resulting a script less trading (trading without share certificates).
All securities listed on the MSE will be processed by MSD. Thus any securities that will be issued in future by companies to be traded on MSE shall be eligible for processing in MSD.
The MSD account is the first step you take to trade shares in the secondary market. Thus all investors must open an account with the MSD to buy and sell securities through the Maldives Stock Exchange.
The deposited securities held in the Securities Account are held by MSD in trust for the Account holders.
There are main three types of account opened at MSD:
1. Investor account (Individual / Company): An account opened for an investor to deposit the shares and hold the shares in trust.
2. Broker account: A broker or dealer's representative account is opened for the all the licensed active brokers.
3. Dealing company account: An account opened for the licensed dealing companies.
Criteria
To open a securities account, the applicant must be present at the MSD to sign the Specimen Signature Card. Once the securities account is opened, trading can be processed.
Documents Required
1. Individual Account: To open an individual account,Securities Account Opening (Individuals) - Form 01 should be completed and submitted to MSD with the following documents:
* Original and a copy of National Identity Card.
*Bank Deposit Slip or any other document from Bank (which gives investors Bank Account Number and Bank Name)
*In case of a minor the National Identity Card or the original birth certificate (if it has got the NIC number on it) and the National Identity Card of the parent who will be authorized to operate the account.
2. Corporate Account: To open a corporate account,Securities Account Opening (Company) - Form 02 should be completed and submitted to MSD with the following documents:
* The original certificate of incorporation
* Copy of the memorandum and articles of association
* The Board resolution nominating signatories to operate the account on behalf of the company and authorizing the opening of the account with MSD.
* Original National Identity Card of authorized signatories.
Account Opening Procedure
* Obtain the relevant account opening form (Form 01- Individuals / Form 02- Company) and fully understand the requirements.
* Understand the MSD rules which provide details of operating the securities account.
* Duly complete the account opening form & submit to MSD with the required documents.
* The account confirmation slip with the MSD account number assigned will be issued to the applicant once the account is opened
* The MSD account number is important and will be required when ever you request for any service from MSD
SECURITIES DEPOSITS AND WITHDRAWALS
Deposit of Securities
All securities shall be of good delivery and shall be accompanied by a duly signed Securities Deposit / Withdrawal / PST Form (Form 08) in favour of MSD
A slip will be issued to the account holder as confirmation of receipt of such deposits duly acknowledged by the MSD
The issuing company shall confirm to MSD within three (3) market days that the shares have been credited to the account of MSD in the company share register.
Withdrawal of Securities
An account holder who wishes to request for the securities certificates in respect of securities purchased and credited to a Securities Account or deposited in a Securities Account shall forward a duly signed Securities Deposit / Withdrawal / PST Form (Form 08) to the MSD
The issuing company is required to submit to MSD securities certificates against MSD withdrawals before the expiry of three (03) market days of lodging a valid transfer with them.
SECURITIES TRANSFER
Inter Account Transfer
An account holder if he so desires may transfer any securities in his account to the account of another account holder by forwarding an Inter Account Transfer Form (Form 07)
SCRIPLESS TRADING
