83 regulations issued to support Capital Mart Law<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nissued 83 regulations here yesterday to support the
\nimplementation of the newly introduced Capital Market Law.<\/p>\n
The issuance of the regulations marked the full implementation
\nof the Capital Market Law, which was approved by the House of
\nRepresentatives (DPR) late last year.<\/p>\n
Bapepam's new regulations were mostly taken from the agency's
\nexisting capital market rulings, covering almost all issues in
\nstock and bond trading activities, including licensing procedures
\nand capital requirements of a stock exchange operator and its
\nsupporting agencies.<\/p>\n
The new elements in the regulations include the increase of
\nthe foreign ownership portion in listed securities companies to
\n85 percent and in listed mutual funds to 100 percent from 49
\npercent previously. Foreign ownership in other types of companies
\nis still limited to a maximum of 49 percent.<\/p>\n
The other new aspects also include the issuance of detailed
\nguidelines on the transactions of shares of mutual funds and the
\nimprovement of the regulations on the activities of a stock
\nexchange operator, stock clearing and settlement agencies.<\/p>\n
The new regulations also strengthen the control on share and
\nbond issuers, especially that related to the accounting quality
\nand the utilization of proceeds raised from share or bond
\nissuance.<\/p>\n
A public accountant is, for example, required to immediately
\nreport to the capital market watchdog if they find a breach
\ntaking place in a listed company or if they feel the financial
\ncondition of a listed company is at a critical stage.<\/p>\n
The requirement to report the utilization of funds raised from
\nthe public is also being imposed on bond issuers. Such a
\nrequirement was previously imposed on share issuers only.<\/p>\n
Bapepam Chairman I Putu Gede Ary Suta said that activities
\nrelated to tender offers, transactions involving conflicts of
\ninterest, disclosure of information, merger and takeovers are
\nstill bound by the old rulings.<\/p>\n
\"Issuing regulations regarding those subjects is much more
\ndifficult. We need much longer to avoid contradictions with other
\nrulings,\" he told newsmen during the launching of the new
\nregulations.<\/p>\n
The required capital for a stock exchange operator and its
\nsupporting agencies, such as clearing, settlement and rating
\nagencies as well as securities firms is being kept at previous
\nlevels.<\/p>\n
The minimum paid-up capital of an exchange operator remains at
\nRp 7.5 billion (US$3.2 million), while that of clearing and
\nsettlement agencies is still set at Rp 15 billion.<\/p>\n
Domestic and foreign joint-venture securities companies
\noperating both as underwriters and brokers are, as before,
\nrequired to have a minimum paid-up capital of Rp 10 billion.<\/p>\n
If the securities companies operate only as brokers or as fund
\nmanagers, the minimum paid-up capital is set at Rp 500 million
\nfor a domestic firm and Rp 1 billion for a foreign joint-venture.<\/p>\n
The minimum paid-up capital for securities companies engaged
\nboth in brokerage and fund management is set at Rp 1 billion for
\na domestic firm and Rp 2 billion for a foreign joint venture.<\/p>\n
Putu said that if securities companies' services cover not
\nonly underwriting but also brokerage and fund management
\nactivities, the minimum-paid up capital is set at Rp 10.5 billion
\nfor a domestic firm and Rp 11 billion for a foreign joint
\nventure.<\/p>\n
He said that unlike existing foreign joint ventures, many
\ndomestic companies have yet to adjust to the new capital
\nrequirements, which were actually introduced last year.<\/p>\n
\"The local securities companies have to adjust their capital
\nto new requirements in two years beginning Jan. 1,\" he said.<\/p>\n
Most of the new regulations, however, do not stipulate strict
\npunishments, except for fines on companies which file financial
\nreports late, or break other important rules.<\/p>\n
The fines are set at Rp 500,000 for each day late for a stock
\nexchange operator, Rp 1 million for share issuers and Rp 100,000
\nfor capital market supporting agencies such as stock
\nadministration agency, trustee and securities firms.<\/p>\n
Unlike before, individuals such as the director, the
\ncommissioner of a listed company, and those holding over five
\npercent of listed companies' shares, could also be fined if they
\ndo not report important events that could affect share prices.
\nThe fine for individuals is also set at Rp 100,000 per day late.<\/p>\n
The new Capital Market Law, which replaces outdated 1952
\ncapital market regulations, contains 16 chapters and 123
\narticles, covering all activities in the capital market.<\/p>\n
The regulations related to technical aspects of the activities
\nof the stock exchange and other capital market supporting
\nagencies are regulated by Bapepam. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/83-regulations-issued-to-support-capital-mart-law-1447893297",
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