The Maldives Securities Depository (MSD) has urged holders of paper share certificates to convert their holdings into electronic shares through its online platform, Infinity.mv.
MSD said the transition would allow shareholders to access information and updates on their investments more easily while ensuring their ownership records are securely maintained.
According to MSD Registrar records, approximately 37,770 individual shareholders still hold paper share certificates.
The company said paper certificates, particularly those held by elderly investors and families for many years, risk being lost or damaged. Family members may also face difficulties locating them when dealing with inheritance and share transfers.
Converting the certificates into electronic shares would allow ownership records, identification details and contact information to be updated and verified, making it easier for families to manage their investments in the future.
MSD said shareholders would still need to complete the relevant legal documentation and procedures for inheritance and transfers.
Shareholders can register on Infinity.mv and verify their identities through eFaas. The platform allows users to view their shareholdings and access statements.
However, MSD clarified that registering on the platform does not automatically convert paper certificates into electronic shares. Dematerialisation is a separate process, and the company will advise shareholders on the required documents, verification procedures and any applicable fees.
Those who are unsure about their shareholdings, cannot find shares they believe they own or need help identifying their records can submit a request through the MSD website. The company will review the relevant records and advise them on the next steps.
Shareholders who need assistance with the conversion can also arrange an appointment with MSD. A trusted family member may help them understand the process and prepare the necessary documents. However, MSD cautioned shareholders against sharing their passwords or verification codes with anyone.
MSD currently provides share registrar services for Bank of Maldives (BML), Maldives Transport and Contracting Company (MTCC), Maldives Tourism Development Corporation (MTDC), Ooredoo Maldives, Maldives Islamic Bank (MIB), Amana Takaful and Dhiraagu.
The company plans to work with listed companies to facilitate the conversion of paper certificates into electronic shares.
MSD CEO Noorban Fahmy said the company's strategic direction was to move listed securities towards electronic ownership, describing the strengthening of the central securities depository as a key part of modernising the country's capital market.
“This will ensure the safety of investors' shares and facilitate digital access to investments,” Noorban said.
The process, known as dematerialisation, involves converting physical share certificates into electronic records held in a depository account. MSD compared the system to banking, where account records provide proof of ownership without the need for separate paper documents for every transaction.
The company stressed that dematerialisation would not change the number of shares held by an investor, as ownership is already recorded in the respective company's shareholders' register. However, the market value of shares may still fluctuate.
Shareholders interested in buying or selling listed shares through the Maldives Stock Exchange can also contact MSD for information on depository arrangements and access to a broker. Sales can proceed once a buyer is found.
Further information and appointment services are available through the MSD website or by calling 3307878.
