How digital ownership helps investors securely hold, manage, and access their securities

As the Maldives capital market continues to develop, the Maldives Securities Depository (MSD) has become an important part of how investors hold, manage, and access their securities.

Operating behind the scenes, MSD ensures that market transactions are executed securely and efficiently. Its role is reinforced by the listing framework of the Maldives Stock Exchange, which requires corporate actions such as bonus issues, share splits, and rights issues to be issued in dematerialized (electronic) form. This requirement underpins the market’s transition toward a more digital securities environment.

The Infrastructure Behind Every Trade

Every trade executed on the exchange is supported by a structured post-trade process. Once a trade occurs on MSE, MSD manages the clearing and settlement process, ensuring that securities are transferred to the buyer and funds are delivered to the seller.

Settlement is completed on a T+1 basis, meaning one working day after the trade date. The system operates on a Delivery-versus-Payment model, where securities and funds are exchanged simultaneously. This reduces counterparty risk and strengthens market integrity, an essential feature for a developing capital market.

Beyond settlement, MSD acts as the central custodian, maintaining electronic records of ownership. Although some physical certificates remain, securities must be held in dematerialized form to be actively traded.

From Paper to Digital: A Structural Shift

The transition from physical to digital ownership is steadily progressing as listed companies adopt electronic shareholder processes. Issuers are moving toward digital registration, communication, and participation mechanisms that support corporate actions and strengthen shareholder participation.

When new shares are issued through corporate actions, the shares are credited directly to the respective investors’ MSD accounts. Where a shareholder does not have a valid MSD account, the entitlement will be securely held in a demat suspense account until claimed. This mechanism was introduced to ensure that unclaimed securities entitlements are managed in a transparent, secure, and standardized manner. Once the shareholder opens an MSD account, the shares can be transferred to their account, enabling them to view, manage, and exercise control over their holdings.

This shift reduces reliance on physical certificates and supports a more transparent, accessible, and efficient securities market.

Infinity: A Single Gateway for Investors

Supporting this ecosystem is the Infinity Portal, MSD’s centralized digital platform for investors

Through Infinity, investors can view portfolio holdings and balances, download account statements, subscribe to public offerings including IPOs, and track application status. Additional features such as Trade Connect allow users to register with brokers, place orders, and monitor trading activity, while FahiVote enables digital participation in Annual General Meetings. The platform also provides profile management tools for updating personal and banking details in line with regulatory requirements.

Getting Started

Opening an MSD account is simple, with applications available online via the Infinity Portal, through email, or in person at MSD.

By opening an MSD account and using Infinity, investors can stay connected to their securities, access key market services, and take part in the Maldives’ transition toward a more digital and investor-friendly capital market.