CIMB to inject capital into Niaga Sekuritas<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Commerce International Merchant Bank (CIMB), a unit of Malaysia's
\nfinancial group Commerce Asset Holdings Bhd., will inject fresh
\nmoney into PT Niaga Sekuritas in return for a 51 percent stake in
\nthe securities firm.<\/p>\n
Peter B. Stock, president of the publicly listed Bank Niaga,
\nwhich owns the securities firm, said that the capital injection
\nwas needed to meet the minimum capital requirement set by the
\nCapital Market Supervisory Agency (Bapepam), and to expand the
\nfirm's operation beyond the brokerage business.<\/p>\n
\"Possibly in the near future CIMB will enter Niaga Sekuritas,
\nbut this has yet to be approved by the shareholders,\" he was
\nquoted by detik.com as saying on Wednesday.<\/p>\n
Commerce Asset Holdings purchased a controlling 51 percent
\nstake in Bank Niaga last year from the Indonesian Bank
\nRestructuring Agency.<\/p>\n
Peter did not say how much money CIMB would inject into the
\nsecurities firm, but he said that the firm's current adjusted net
\nworking capital level was around Rp 17 billion (US$2.07 million).<\/p>\n
Bapepam has required that all securities firms in the country
\nhave a minimum capital level of Rp 25 billion by the end of next
\nyear.<\/p>\n
The capital market watchdog has also stipulated that by the
\nend of this year, the capital level must be at least Rp 10
\nbillion.<\/p>\n
But many securities firms have been struggling to meet the
\nyear-end capital level requirement, putting them at a risk of
\nbeing expelled from the industry. Some analysts have said that if
\nthe threat is realized, share transaction on the Jakarta Stock
\nExchange might drop. Bapepam plays down such concern, saying that
\nshare transactions are dominated by the 10 largest brokerage
\nfirms.<\/p>\n
Bapepam said last week, that out of the 170 securities firms
\nin the country, only 60 firms had met the year-end minimum
\ncapital requirement.<\/p>\n
The agency has no intention of lowering the requirement as it
\nhas been postponed for over a year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cimb-to-inject-capital-into-niaga-sekuritas-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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