STO sells BML shares worth MVR33 million to Champa Brothers

The State Trading Organisation (STO) has sold its Bank of Maldives Plc (BML) shares worth MVR33 million (US$2.1 million) to Champa Brothers Pvt Ltd through the Maldives stock exchange.

STO MD Adam Azim told Sun Online that the shares – reportedly worth 30 percent of BML – were sold in a bid to improve the state-owned company’s finances.

“The shares were sold through the stock exchange on the open market. It was carried out in a way that anybody who wanted to buy the shares had the chance,” he was quoted as saying.

Sun Online reported back in December 2012 that Champa Brothers had purchased treasury bills worth US$11 million. The amount currently owed by the government to the company remains unclear.


Bank of Maldives and MTDC at risk of trading penalties over AGM delays: Stock Exchange

The Maldives Stock Exchange (MSE) has warned that the Bank of Maldives (BML) and the Maldives Tourism Development Corporation (MTDC) could both face trading restrictions over an ongoing failure to hold their respective annual general meetings (AGMs).

MSE CEO and Managing Director Hassan Manik told Minivan News that both companies had yesterday received final notices to hold their AGMs as soon as possible, after previously failing to hold the meetings no later than five months from the end of the financial year.

Both companies are now said to have agreed to announce dates within the next seven days for when the respective AGMs will be held, according to the MSE.

Manik stressed that under the MSE’s listing guidelines, failure by a company to hold an AGM within the required deadline could see it facing penalties including being suspended from trading securities.

“We have communicated to both companies to hold their AGMs as soon as possible. This is the first time we have gone public with such an announcement, but we want to make sure these companies are providing timely information,” he said. “Both have commented that they will be publicly declaring a date for their meetings within a week.”

According to Manik, while companies listed on the stock exchange regularly were unable to hold their AGMs within the required time period, he maintained that all groups listed were trying to meet the deadline outlined in its listing rules.

However, he claimed that in the case of both the MTDC and BML, it had been “a long-time” since the respective deadlines had passed, adding that both groups’ shareholders should be made aware of their operatons.

A BML spokesperson told Minivan News today that the failure to have held its AGM had been the result of delays in appointing board members  to the company.

“We have kept both the MSE and the Capital Market Development Authority (CMDA) informed about this matter, ” the spokesperson said.  “We are expecting to announce a date for our AG tomorrow.”

A spokesperson for the MTDC was not responding to calls at the time of press.

Local media has reported that the MSE has now set a deadline for both companes to hold their AGMs by October 24 or face action under its listing rules.

CMDA fines

Back in May, the MTDC, BML and the State Trading Organisation (STO) were all fined by the CMDA after they failed to publish quarterly reports and financial statements for their operations within an allotted time period.

The MTDC and the BML were each fined up to Rf30,000 for failing to publish annual financial statements as stipulated under the regulations. The statistics must be published within four months after the end of a financial year.

The companies had requested for deadline extension citing difficulties in producing the report within the given time frame, CMDA said. However the extension was not granted as the reasons provided were not acceptable, the authority claimed at the time.


Maldives Stock Exchange certified carbon neutral

The Maldives Stock Exchange (MSE) has claimed it is the first in the world to become ‘carbon neutral’.

The MSE says it has worked to measure and offset emissions caused by its use of energy, waste disposal, business travel and staff commuting.

The stock exchange worked with offsetting company The CarbonNeutral Company to measure total greenhouse emissions and offset it through the purchase of carbon credits.

CEO of the MSE Ibrahim Nasir said that by adopting a leading environmental position within the financial services arena, “we hope to encourage listed companies within the stock exchange to also take action for the impact of their carbon emissions.”

President Mohamed Nasheed has said the entire country will be carbon neutral by 2020.