Capital Market Development Authority (CMDA) has registered the first the Maldives’ first investment fund under the name Watercress Growth Fund Pvt Ltd. The registration was done and handed over during a small function held at CMDA.
An Investment Fund operates on the basis of collecting subscriptions from anyone who wishes to participate. This would in turn be invested in either a bank deposit or any sort of developmental investment therein, the interest, profits, dividends and or any other benefits would be distributed among the subscribers. The fund would act as a legal entity to facilitate this transaction from subscriber to investment and back.
Under the law to set up and operate such funds in the country, its stated that a fund can be set up and open to the general public for subscriptions by a public limited company or a partnership which has a minimum of 10 partners.
The purpose of establishing auch a fund is to give back to the community and develop the capital market industry so as to gain public trust and increse funding and more importantly the dividends back to the community. This will help facilitate growth and development of the economy.
Speaking to the press, Watercress stated that the fund is targeted at getting foreign investments, however, the local community can too take part in it as well. This is a new sector of the economy which would benefit it indirectly.