New state-owned company established to operate second securities market

The government has established a wholly state-owned company to operate a second securities market in the Maldives with government support.

The President’s Office said National Exchange Limited was established on Thursday under the authority granted to the President by Article 15 of the Companies Act.

The government said the company was established as part of efforts to develop the Maldives’ capital market, taking into account the government’s financing requirements and the expansion of the Islamic finance sector.

According to the President’s Office, National Exchange Limited will work to develop the domestic capital market, improve market confidence and transparency, and establish and operate securities exchanges and trading facilities.

The company will also facilitate the issuance, listing and trading of government securities, sukuk compliant with Islamic Shariah principles and other financial instruments.

Its mandate also includes providing post-trade services through a central securities depository, as well as clearing and settlement services.

The government said the company would work with domestic and international financial institutions to develop a stable and sustainable financial market in the Maldives.

At present, securities trading in the Maldives is operated by the privately owned Maldives Stock Exchange.

The market is regulated by the Capital Market Development Authority (CMDA), an independent institution established under the Securities Act.