Foreign Investors Allowed in Maldives Capital Market Under New CMDA Rules

The Capital Market Development Authority (CMDA) has announced new guidelines allowing foreign investors to participate in the Maldives capital market, opening opportunities for investment in shares, bonds, and other approved securities.

Under the new regulations, foreign entities may invest in equity, though individual investors, groups, or related parties cannot hold more than 10 percent of shares in a listed company. However, in securities other than equity—such as bonds—foreign investors are permitted to invest up to 100 percent, unless otherwise restricted by the issuer’s terms.

To ensure proper oversight, the CMDA requires that foreign investors be registered through its FI Portal by licensed dealers or brokers before receiving any investment-related services. Registration requests must be submitted in the format specified by the authority, ensuring compliance with the regulatory framework.

The regulations further mandate quarterly submission of detailed registers of foreign investors’ transactions and holdings. Additionally, an annual external audit report must be compiled within three months of year-end, detailing operations linked to foreign investors and assessing adherence to CMDA’s rules.

Non-compliance with these regulations carries fines ranging from MVR 10,000 to MVR 100,000. The CMDA said the measures are designed to strengthen investor confidence, improve market transparency, and support the sustainable development of the Maldives’ financial sector.