Bapepam to boost law enforcement<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency promised
\nhere yesterday to strengthen its law enforcement to protect the
\ninvesting public.<\/p>\n
Agency chairman I Putu Gede Ary Suta said all capital market
\nplayers and their supporting institutions should abide by the
\nexisting regulations or lose their licenses.<\/p>\n
"We have preventive and repressive measures ... This means
\nthat who ever acts against the law will be penalized," Putu said
\nin a hearing of the Budgetary Commission of the House of
\nRepresentatives.<\/p>\n
The agency Monday temporarily suspended five brokerage
\ncompanies because they no longer met operational standards, such
\nas being currently active and operating with licensed brokers.<\/p>\n
The five brokerage houses are PT Artha Adya, PT Creative
\nSecurities, PT Danagajah Sakti, PT Pancasumber Dhanamandiri and
\nPT Sararadana Investindo.<\/p>\n
Putu said he temporarily revoked their licenses as a warning
\nto them.<\/p>\n
"We have given them 90 days to improve their condition, or
\nhave their licenses revoked permanently," Putu said.<\/p>\n
Putu said he was sad to find out that owners of the suspended
\nbrokerage houses, mostly well-known businesspeople, paid no
\nserious attention to improving their brokerage businesses.<\/p>\n
"Perhaps these reputable businesspeople consider the brokerage
\nhouse business merely a side job," he said.<\/p>\n
Putu also warned that all companies involved in capital market
\nactivities should continue to improve their financial performance
\nto anticipate growing competition in financial services in the
\ncountry.<\/p>\n
"Globalization of financial services will result in tight
\ncompetition," he said. "So that all the market players should
\nequip them with big capital to allow them to survive," he said.<\/p>\n
Of the 214 securities companies in the country, around 100 are
\noperating with weak capital.<\/p>\n
Putu also told House members about the latest developments in
\nthe country's capital market.<\/p>\n
He said that the value of shares and bonds issued through
\nlocal bourses was Rp 61.91 trillion and Rp 18.48 trillion
\nrespectively as of July 4, 1997.<\/p>\n
He said that the market capitalization of JSX increased
\nsignificantly to Rp 266.59 trillion as of July 4, from Rp 152.25
\ntrillion at the end of 1995.<\/p>\n
To ensure smooth transactions on the JSX, the agency issued
\nlicenses for PT Kliring Penjamin Efek Indonesia (clearing and
\nguarantee firm) in June and to PT Kustodian Depositori Efek
\nIndonesia (central securities depository) to support scripless
\ntrading.<\/p>\n
He said scripless trading was expected to start early next
\nyear on the JSX.<\/p>\n
"With the scripless system, both securities trading and the
\nsettlement will be done electronically," he said.<\/p>\n
Currently only securities trading is done electronically while
\nthe settlement is done manually, he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bapepam-to-boost-law-enforcement-1447893297",
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"sponsor": "Okusi Associates",
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