CMDA Opens Maldives’ Capital Market to Foreign Investors

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

Under the new regulations, foreign investors are permitted to invest in shares, bonds, and other securities approved by the CMDA. The rules aim to attract foreign capital while ensuring market integrity and accountability.

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To prevent excessive concentration of ownership, the framework sets a limit of 10 percent on equity holdings by any single foreign investor. This restriction applies both to individuals and entities acting jointly or under common control.

For other types of securities, including bonds, foreign investors may hold up to 100 percent ownership, unless specific terms in the investment offer impose different limits.

The regulations require all foreign investors to be registered through the CMDA’s Foreign Investment (FI) Portal by a licensed dealer or broker. Only agents authorised by the CMDA are permitted to complete this registration process.

In addition to registration, the framework mandates quarterly reporting of all transactions and holdings. Investors must also submit an independently audited annual report within three months of the end of the financial year, confirming compliance with the CMDA’s rules.

Failure to comply with these obligations may result in fines ranging from MVR 10,000 to MVR 100,000, as determined by the CMDA.