'Watercress Growth and Pvt Ltd' The first Maldivian investment fund aimed to develop small and medium sized businesses has been registered. The registration form was presented to the company on Monday by Capital Market Development Authority (CMDA) Chairman Ahmed Naseer.
The investment fund will collect a subscription fee from its participants, and will the use the profit returns to provide financial and other aid to the participating companies.
CMDA said the reason for the showcasing of this fund's registration is to increase the trust the public will have for such funds. The authority said the public will have the chance to invest in such funds in the future and that these funds can result in making a profitable business environment.
CMDA has stated that even though investment funds are relatively new to Maldivians, that they will go on to become really profitable for the country. CMDA also noted that most capital is currently generated to from banks, and that generating capital through the sale of bonds is new to the Maldives.
"We see big businesses providing help to small businesses. We are making it official through the investment fund. The fund will be a big help for even newly starting companies," CMDA Chairman Naseer said.
The laws related to registering a fund says that only a Maldives based company or partnership can register a fund, and that subscriptions can only be opened to the public if the company is a public company or has 10 or more partners.
Watercress said that the registered fund is a private equity fund mainly targeted for foreign investors. However, they stated that they plan to open new funds in which the public can invest off the profits of the current fund. They also informed that the first fund will be for industries which bring profit into the Maldives.
Watercress notes that this fund will bring both direct and indirect profit into the Maldives.
