The licensing regulation formulated for dealing companies (dealers) and dealers’ representatives (brokers) has now come into effect, after being published on the government gazette yesterday.
According to the regulation, a dealing license must be issued through a special form. Applications to renew the dealing license can also be submitted through a special form. A special form must also be submitted to apply for a brokerage license to represent the dealers.
As per the regulation, dealers licenses can only be applied for by companies registered in accordance with the Companies Act of the Republic of Maldives.
The regulation also states that applicants for a license to represent deals must meet certain requirements. According to the regulations, the conditions for brokers include 18 years of age, no debt conviction, no bankruptcy in any country, and no conviction of fraud or embezzlement. They must also not be sentenced to more than six months in prison for any crime within the past 10 years.
It is also a condition to complete the first degree in business accepted by the relevant state authorities, to participate in training sessions on securities selected by the Capital Market Development Authority (CMDA), and to pass the securities deals/stock brokerage exams held by the Authority.
If you apply for a dealing license with the application form, you will be required for MVR 10,000 as an application processing fee. If you apply for a license to represent the dealers, you will be charged MVR 500 as an application processing fee.
If you wish to renew the dealing license, a fee of MVR 1000 will be charged, while a fee of MVR 500 will be charged for the new license to represent the dealer. According to the regulation, dealers have an annual fee of MVR 5,000 per year to CMDA. Those licensed to represent deals are required to pay an annual fee of MVR 500.
