Maldives opens Capital Market to foreign investors with CMDA new rule

The Capital Market Development Authority (CMDA) has introduced a new regulatory framework that offers the Maldives’ capital market to foreign investors.

Under the new rules, foreign investors are now able to invest in shares, bonds, and other CMDA-approved securities. 

To protect market integrity, the regulations place a cap on equity ownership: no individual, whether acting alone or in coordination with related parties or entities they control, may hold more than 10 percent of the shares in any single company.

For securities other than shares, foreign investors may hold up to 100 percent ownership, unless otherwise restricted by the terms outlined in the offer or investment invitation.

Prior to engaging in any activity, a Foreign Investment Agent must register the investor through the CMDA’s FI Portal, following the authority’s prescribed format. Only dealers and brokers licensed by the CMDA are authorized to carry out this registration.

The framework also outlines strict reporting obligations. Foreign investors are required to submit detailed transaction records and a complete register of holdings every quarter. Additionally, an independently audited report detailing annual operations and compliance with regulatory requirements must be submitted within three months of the end of each financial year.

Failure to meet these requirements could result in fines ranging from MVR 10,000 to MVR 100,000, by the CMDA.