Chapter 5 Capital Market Development Authority (CMDA) of … · Capital Market Shariáh Advisory...

Chapter 5

Capital Market Development

Authority (CMDA) of

Maldives Ibrahim Sameer (MBA - Specialized in Finance,

B.Com – Specialized in Accounting & Marketing)

www.ibrahimsameer.wordpress.com

What CMDA Do?

• The Capital Market Development Authority

(CMDA) is an independent institution

established under the Maldives Securities Act

(2/2006) responsible for developing and

regulating the Maldives Capital Market.

What CMDA Do?

• CMDA also has the regulatory mandate of

supervising the functions of the Maldives Pension

Administration Office (MPAO) in administering

the Maldives Retirement Pension Scheme

(MRPS) under the Maldives Pension Act

(8/2009).

CMDA Vision

• "To have a thriving capital market in the Maldives,

which finances business investments and

development, and promote the expansion of the

Maldivian economy."

CMDA Mission

• "To facilitate fair and orderly development of the

capital market so that businesses have access to

capital, and at the same time investors are

provided with investment opportunities."

CMDA Core Value

• Integrity

• Professionalism

• Accountability

• Independence

• Initiative

Key Objectives of CMDA

• To develop a market in which securities can be

issued and traded in a fair and orderly manner;

Key Objectives of CMDA

• To protect and promote the interest of investors

and potential investors in securities;

Key Objectives of CMDA

• To regulate and supervise the securities market;

Key Objectives of CMDA

• To take measures to prevent inappropriate

conduct in relation to dealings in securities and to

prevent conduct of activities affecting market

confidence.

Key Objectives of CMDA – In

Dhivehi

Strategic Goal of CMDA 2015-

2019• The key strategic priorities of CMDA as stipulated

in the Maldives Capital Market Strategic Plan

2015-2019.

Strategic Goal of CMDA 2015-

2019• Establish a secondary market for trading

government securities.

Strategic Goal of CMDA 2015-

2019• Facilitate establishment of investment funds.

Strategic Goal of CMDA 2015-

2019• Facilitate establishment of venture capital funds.

Strategic Goal of CMDA 2015-

2019• Promote issuance of Shariah compliant

government securities.

Strategic Goal of CMDA 2015-

2019• Increase listings from private sector.

Strategic Goal of CMDA 2015-

2019• Promote financial literacy & increase market

awareness.

Organization Structure of CMDA

Board of Directors of CMDA

Board of Directors of CMDA

CMDA – Capital Market Shariah

Advisory Council• The Capital Market Shariáh Advisory Council

(CMSAC) acts in an advisory capacity to the

CMDA Board of Directors on matters concerning

the development & regulation of the Islamic Capital

Market. The CMSAC is responsible for validating

all Islamic Capital Market matters to ensure their

compatibility with Shariáh.

• All matters related to the Capital Market Shariáh

Advisory Council is governed by the Regulation on

Capital Market Shariáh Advisory Council.

CMSAC Members

Corporate Governance (CG)

Code• The Corporate Governance Code was published

by CMDA in 2008.

Corporate Governance (CG)

Code• CMDA’s objective for introducing the code is to

ensure companies listed on the Maldives Stock

Exchange are well governed, upholding the

core principles (responsibility, accountability,

fairness & transparency) of corporate

governance in conducting business, which would

prepare them to be globally competitive, and

maintain and promote investor confidence both

locally& internationally.

Applicability of CG Code

• The code applies to all companies listed on the

Maldives Stock Exchange.

• All companies, especially those that intent to be

listed on the Maldives Stock Exchange can

voluntarily adopt the code under the assistance of

CMDA.

Listed Companies in Maldives

Stock Exchange• Amana Takaful (Maldives) PLC (ATM)

Listed Companies in Maldives

Stock Exchange• Bank of Maldives (BML)

Listed Companies in Maldives

Stock Exchange• Dhivehi Raajjeyge Gulhun PLC (DHR)

Listed Companies in Maldives

Stock Exchange• Maldives Tourism Development Corporation PLC

(MTDC)

Listed Companies in Maldives

Stock Exchange• Maldives Transport and Contracting Company

PLC (MTCC)

Listed Companies in Maldives

Stock Exchange• State Trading Organization PLC (STO)

Listed Companies in Maldives

Stock Exchange• Centurion PLC

Listed Companies in Maldives

Stock Exchange• Ooredoo Maldives PLC (OMPL)

Enforcement Process

• CMDA’s undertakes enforcement of laws &

regulations as stipulated in the Enforcement and

Appeal Procedure. The purpose of the

enforcement & appeal procedure is to;

Enforcement Process

• Ensure effective implementation of rules and

regulations.

• Guide the staff of CMDA in taking

enforcement/administrative actions.

• Ensure consistent application of rules and

regulations.

• Provide guidelines to the market participant on

how enforcement actions are taken, and the

appeal procedure.

Enforcement Methods

CMDA Institutes

CMDA Institute

• CMDA Institute was established with the objective

to provide training and certification to ensure good

conduct and professionalism of market

intermediaries, to raise market awareness, and to

promote corporate governance in the Maldives.

CMDA Institutes

• The activities of the institute include conducting

training programs and continuous professional

development and refresher courses for market

participants. It actively promotes corporate

governance and runs awareness programs for

investors and issuers.

ICDC

• Institute of Corporate Directors and Secretaries

(ICDS) was established with the aim to promote

professional practice of corporate directorship and

of company secretaries in line with international

principles, and to promote corporate governance in

companies with a view to improve their efficiency

and performance.

ICDC

• ICDS provides orientation, training and advisory

services to its members. It also undertakes

research in matters affecting corporate directorship

and issues publications to educate and create

awareness of important finding among the

stakeholders.

ICDC

• The training programs of ICDS are designed to

enhance knowledge, skills and values demanded

by modern corporate governance practices among

the corporate directors & secretaries in the

Maldives.

What else you want to know?

Questions & Answers

Thank You

Ibrahim SameerSeek knowledge from cradle to grave