Transcript Central Depository System (CDS)

Azleema Ahmed
Deputy Manager
Capital Market Development Authority (CMDA)
Maldives Securities Depository
(MSD)
 What is a MSD?


MSD is the first Central Depository in
Maldives
It is an automated system which provides
investors an efficient central clearing of
securities for the securities traded on the
Maldives Stock Exchange.
Maldives Securities Depository
 Maldives Securities Depository (MSD)
was incorporated on 14th April, 2004
 MSD is housed within the CMDA
 CDS rules is adopted by the Securities
Act 2/2006
Maldives Securities Depository
 Object – To speed up share trading and
facilitate safe keeping of share
 Services





Account registration
Share deposit and withdrawal
Share transfer for trading
Safe keeping
Account information to investor &
companies
How does the MSD work?
Investor Directly
SHARE CERT
Deposited
CDS
How does the MSD work?
Certificates
CDS
Shares credited
How does the MSD work?
Investors
Stock Exchange
Transactions
Shareholders List
MSD
Investors A/C
Share transferred
Contract Note
How does the MSD work?
MSD
Investor
“A” A/C
Investor
“B” A/C
MSD uses Direct A/C method
 Merits



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Investors are more confident as securities
are held under their name
Easier to manage and minimise errors
Direct transfer facility
Easier to monitor the trading as first hand
information on trading personnel
Legally matters can be solved easily
Future Plans
 Plan



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To provide Indirect account method
To facilitate broker, custodian participation
To facilitate settlement and Clearing for the
securities traded
To facilitate pledging of securities (lending
and borrowing)
To facilitated debt and other types of
securities
MSD Goal

Ultimate goal is to establish an efficient
central depository system for clearing and
settlement for the securities market in the
Maldives

To established a Dematerialized Market
MSD uses Direct A/C method
 Demerits




Difficulty in A/C opening
Less people in the depository
Information is not often updated to
depository
Difficulty in operation and handling of
A/C.
Maldives Securities Depository
(MSD)



Thus we need to study and understand
methods and procedures
Learn best practices and knowledge of other
developed Depositories and Clearing system
so that we can develop and enhance the
depository to achieve the ultimate goal.
Corporation, assistance and expertise of
sister depositories, institutions and member
countries are very crucial.
THANK YOU