The Capital Market Development Authority (CMDA) is responsible for developing and regulating the capital market in the Maldives. It has statutory powers to license securities market intermediaries including brokers, dealers, investment advisers, as well as stock exchanges and central depositories. The CMDA was established under the Maldives Securities Act, 2006 and commenced operations on 26thJanuary 2006.
History
The Maldivian Capital Market has a history that dates back to the early sixties. A few companies raised money from the public for economic activities in the 60’s. During that time, the capital market activities were not carried out in a regulated environment and until the year 1999, not much had been done to promote and develop a capital market in the Maldives.
With raised sentiments regarding capitalism and awareness of the potential for growth in the economic sector, a Capital Market Division was established within the Maldives Monetary Authority in 1999 for the purpose of developing a capital market in the Maldives. The establishment of the Capital Market Division laid the foundation for the future capital market activities in the Maldives.
The passing into law of the Maldives Securities Act established the Capital Market Development Authority, in the year 2006. The establishment of the Capital Market Development Authority as the securities market regulator has given credence to the future of the securities market in the Maldives and has gone a long way to instill in the public the future potential of the capital market sector for future development of the economy.
