The President Dr Mohamed Muizz has ratified the third amendment to the Maldives Securities Act (Act no. 2/2006) on Tuesday. The Bill was passed in the 32nd sitting of the second session of the Parliament on August 22, 2024.
The amendments to the law address changes introduced by the Business Registration Act. Specifically, the amendments stipulate that guidelines for foreign investments in securities can be established, assigning the Capital Market Development Authority (CMDA) the responsibility for establishing guidelines for such investments.
Additionally, CMDA is also tasked with establishing a monitoring and compliance system to ensure that securities transactions adhere to the established guidelines.
The bill also mandates that a regulation governing foreign investment securities be made and implemented within six months of this amendment’s ratification. This regulation must detail the types of securities that are eligible for investment, the qualifications required for investors, and the specifics of trading these securities on the stock exchange.
Following the ratification the amendment has been published in the Government Gazette and will come into effect three months from the date of ratification.