Capital Market Development Authority (CMDA) has requested individuals who suffered losses due to investing in an unregistered financial scheme to share details of their losses to the authority.
In a statement, CMDA said the authority is responsible for the regulation of the stock market of the country and issue all the necessary permits related to the provision of securities, as per the Financial Securities Act of the Maldives. CMDA said it is also responsible to take any action required to protect investors and prevent any issues that may compromise confidence in the securities market.
CMDA stated it is illegal to operate any securities transaction without seeking the required permits as per the Financial Securities Act and the relevant regulations. CMDA asked individuals who have suffered losses by investing in an unregistered scheme to report the details of their losses to the authority.
The statement by CMDA came after reports of large investments in a scheme operated by a company called King’s Forex Trade, owned by former Parliamentarian Alhan Fahmy. King’s Forex had revealed it had raised about USD4 million from more than 2,000 investors. On April 25, the company revealed it has stopped accepting investments and was going to seek compensation for damages.