Parliament on Monday accepted a government proposed amendment to the Maldives Securities Act to introduce various products of Islamic finance, provide enterprises with modern facilities and raise funds.
The amendment, submitted by Maafaanu South MP and member of ruling Progressive Party of Maldives (PPM) Abdulla Rifau, prevailed on composition of policies to approve management of funds via local enterprises, which would promote the development of private businesses.
The bill was accpeted by the government controlled parliament without much debate and was forwarded to the parliamentary economic committee for review.
The amendment also stressed the importance of providing investors’ funds to private companies under constructive policies as means for their development.
Highlighting the rapid increase of Islamic finance in the Maldives, the amendment urged the establishment of more reliable procedures to issue Islamic securities in the capital market.
“The amendments proposed for this Bill would open more doors for stronger management of the securities market and for its development,” Rifau stated as a reasoning behind his proposal.
According to the amendment, the president is delegated full authority over election of Capital Market Development Authority (CMDA)’s members.
Dismissal of CMDA board members is authorised only under circumstances of a board member being convicted for a criminal offence in a court of law. Dismissed or resigned board members are to be replaced within 60 days, the amendment adds.
The Securities Act was implemented in 2006 to develop and regulate a capital market in the Maldives, under which licenses and securities are issued and provisions for the function of Maldives Stock Exchange and capital market are established.