House wants changes to capital market bill<\/p>\n
JAKARTA (JP): The House of Representatives urged the
\ngovernment yesterday to revise its capital market bill to ensure
\nfair trading practices.<\/p>\n
The Indonesian Democratic Party asked for changes in the
\nsections relating to licensing procedures for stock broking firms
\nand the role of the capital market supervisory agency
\n(Bapapepam).<\/p>\n
Ni Gusti Ayu Eka Sukmadewi, speaking for the party's faction
\nin the House, said that the licensing procedures for stock
\nbroking companies should be clarified to prevent indirect
\ninvolvement of publicly-listed companies in stock trading
\nactivities.<\/p>\n
She said brokerage companies which were wholly or partly-owned
\nby publicly-listed companies should not be allowed to operate on
\nthe domestic stock market in order to prevent insider trading and
\nother forms of trading fraud, she said in her party's statement
\nduring the opening of debates on the proposed capital market law
\nin the House's special committee.<\/p>\n
Made during the opening debates on the proposed capital market
\nlaw, the party's statement was apparently directed towards the
\nindirect involvement of a number of publicly-listed companies in
\nstock trading activities.<\/p>\n
\"Securities companies should not be allowed to have ownership
\nrelationships with other firms engaged in the stock exchange to
\nguarantee fair trading,\" Gusti Ayu said.<\/p>\n
The PDI, the smallest faction in the House, also called on the
\ngovernment to revise the provisions concerned with Bapepam's
\nsupervisory role as well as those regarding the accounting system
\nand penalties.<\/p>\n
Listed firms<\/p>\n
She said that Bapepam, which, under the proposed legislation,
\nwill oversee companies whose shares are owned by more than 300
\nparties with a minimum paid-up capital of Rp 3 billion -- whether
\nor not they are listed on the capital market -- should focus its
\nsupervisory attention only on listed firms, she said. She said
\nthat if the government wanted the agency to supervise non-listed
\npublic firms as well, it should think of different name.<\/p>\n
Regarding penalties, Gusti Ayu said that the sanctions for
\ncapital market crimes should be clearly defined to prevent
\nmisinterpretation.<\/p>\n
The United Development Party also asked the government to
\nrevise the licensing procedures for the capital market supporting
\nagencies, including broking companies, underwriters and fund
\nmanagers.<\/p>\n
H. Muchsin, spokesman for the party's faction in the House,
\nsaid that Bapepam concern itself with supervisory tasks, while
\nthe issuance of licenses should be handled by the ministry of
\nfinance.<\/p>\n
Finance<\/p>\n
Muchsin said that the draft law, which would provide Bapepam
\nwith greater authority, does not make any stipulations regarding
\nthe agency's financial powers.<\/p>\n
\"The draft law should also give Bapepam stronger powers in its
\nfinancial management to enable it to support its greater
\nsupervisory tasks,\" he said.<\/p>\n
The draft capital market law, submitted to the House late last
\nmonth, will be debated by the House's special committee until
\nOct. 22.<\/p>\n
The draft law, which is scheduled to be implemented in
\nJanuary, will replace the 1952 Capital Market Law. The new law,
\nwhich contains 16 chapters and 123 articles, covers not only the
\nlegal bases for all activities on the capital market but also
\nprovisions in relation to capital market crimes.<\/p>\n
For example, the bill provides Bapepam with greater
\ninvestigative powers and introduces heavier penalties, in the
\nform of both terms of imprisonment and fines. The maximum term of
\nimprisonment under the proposed law is five years, while the
\nmaximum fine is Rp 15 billion (US$6.7 million).<\/p>\n
Bapepam, which at present is allowed to investigate only
\nwritten reports, will be permitted to carry out field
\ninvestigations in dealing with suspected capital market
\ncrimes. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-wants-changes-to-capital-market-bill-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}