Bapepam punishes investors, brokerages over share scam<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nfinally handed down yesterday penalties to investors, brokerage
\nhouses and the Jakarta Stock Exchange (JSX) management over the
\ncornering of Bank Pikko shares early last month.<\/p>\n
The head of the agency's legal bureau, I Nyoman Tjager, said
\nthe agency had obliged Benny Tjokrosaputro and Pendi Tjandra to
\nhand over the profits they made cornering Pikko shares, Rp 1
\nbillion (US$411,520) and Rp 500 million respectively, to the
\nstate treasury within 14 days.<\/p>\n
The agency also demanded Pendi Tjandra quit his position as a
\ndirector of PT Multi Prakarsa Investama Securities.<\/p>\n
Bapepam also fined Multi Prakarsa and PT Putra Saridaya
\nPersada (PSP) Securities Rp 150 million each for their roles in
\nhelping corner Pikko shares. They have 90 days to transfer the
\nmoney to the state treasury.<\/p>\n
The two securities firms were also required to improve their
\ninternal control and bookkeeping. The bookkeeping must be audited
\nby public accountants and reported to the agency within 90 days.<\/p>\n
The agency ordered JSX's management to improve the exchange's
\nmarket surveillance system, the JSX's self-regulations and take
\nquick and necessary measures against securities houses that break
\nregulations.<\/p>\n
Punishment<\/p>\n
The agency handed down the penalties after a one-month
\ninvestigation into the Pikko case which broke on April 8 when the
\nprice of Bank Pikko shares skyrocketed abnormally by 207 percent.<\/p>\n
Tjager said Bank Pikko shares were cornered. The sharp rise
\nwas engineered by Benny, with the help of Pendi Tjandra and the
\ntwo securities houses.<\/p>\n
They took advantage of the stock exchange's poor trading
\nsurveillance.<\/p>\n
He said Pendi Tjandra was involved in manipulating the trading
\nof Pikko shares by splitting buying and selling orders through
\neight security houses to look as if the shares were actively
\ntraded.<\/p>\n
Meanwhile, Benny used at least 13 nominees to help engineer a
\nseemingly active trading of Pikko shares.<\/p>\n
\"These actions directly and indirectly mislead other parties
\ninto active transactions in Pikko shares,\" Tjager said.<\/p>\n
Many short-sale investors posted big losses when Bank Pikko's
\nshare price rocketed as a result of the market cornering. They
\nwere not aware that most of the shares were being controlled by a
\nsingle investor, and they sold short.<\/p>\n
Selling short is when an investor sells a stock he does not
\nown, believing he will be able to buy it back later at a lower
\nprice, thus profiting from the difference.<\/p>\n
But it turned out Bank Pikko shares did not go down as short
\nsellers expected but kept rising until they were suspended later
\nin the day.<\/p>\n
Because of short selling, 52 of the 127 securities houses that
\ntraded Pikko shares on April 8 failed to deliver shares to
\nbuyers.<\/p>\n
The agency also sent warnings yesterday to another 54
\nsecurities firms involved in the trading.<\/p>\n
They include PT Argaartha Securitas, PT Artha Securities
\nPrima, PT Bahana Securities, PT Bakrie Securities, PT Bhakti
\nInvestama, PT Bina Artha Parama, PT Danamon Securities, PT
\nDanareksa Securities, PT Lippo Securities, PT Mashill Jaya
\nSecurities, PT Pentasena Arthasentosa, PT Peregrine Sewu
\nSecurities and PT Sassoon Securities Indonesia. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bapepam-punishes-investors-brokerages-over-share-scam-1447893297",
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