JSX formulating system to protect public interests<\/p>\n
JAKARTA (JP): The management of the Jakarta Stock Exchange
\n(JSX) said yesterday that it is now preparing a more
\nsophisticated surveillance system aimed at enforcing the
\nprotection of public interests.<\/p>\n
\"We are now trying to improve the quality of both our system
\nand our human resources,\" JSX's president, Cyril Noerhadi, told
\njournalists here after a seminar on introduction to the capital
\nmarket.<\/p>\n
He promised that the JSX will set a ceiling for price
\nmovements on any one trading day, which will be used as an
\nindicator of unusual trading.<\/p>\n
\"But it's not public information so I don't have to tell you
\nthe ceiling that we have established,\" he added.<\/p>\n
An investigation team from the Capital Market Supervisory
\nAgency (Bapepam), headed by a bureau chief at the agency, I
\nNyoman Tjager, found out recently that the alleged insider
\ntrading in Bank Mashill shares, which took place in early April,
\nwas made possible by JSX's poor surveillance.<\/p>\n
In the deals of Bank Mashill shares, a director of the bank,
\nJensen Koharjo, was accused of insider trading because of his
\nposition as a commissioner in PT Sumatra Central Prima, one of
\nthe bank's major shareholders, which sold its position in the
\ntransactions.<\/p>\n
The JSX, however, failed to detect Jensen's role in the
\ntransactions and to get information from the bank about it.<\/p>\n
Based on its findings, Bapepam has instructed the JSX's
\nmanagement to improve its surveillance system.<\/p>\n
A former director of the JSX, Stanislaus Say, said that the
\nJSX should be restructured to improve its market surveillance
\nrole.<\/p>\n
He said that under the current structure, the JSX's
\nsurveillance department can not take any quick action because any
\ncontact with listed companies is under the authority of the
\nlisting division or trading department.<\/p>\n
\"I would say that in the efforts to improve the surveillance
\nsystem, the supervision department should have the authority to
\ncontact both the JSX's members and the listed companies,\"
\nStanislaus told The Jakarta Post yesterday.<\/p>\n
Meanwhile, Bapepam's chairman, I Putu Gede Ary Suta, told
\njournalists after the same seminar yesterday that the agency
\nwould further enforce the protection of the investing public and
\nwould prevent any unfair practices.<\/p>\n
Putu also confirmed that the agency has never prevented
\ninvestors from conducting high risk practices such as margin
\ntrading.<\/p>\n
Margin trading is considered to carry high risks because
\ninvestors take the risk of price movements.<\/p>\n
\"It's the market's decision. We have never banned the practice
\nof margin trading because it also helps to increase the
\ntransaction volume on the stock exchange,\" Putu said.<\/p>\n
However, he said he was doubtful whether market players are
\nproperly prepared for the risks that come with this practice.<\/p>\n
Putu also said that more investors would become interested in
\ninvesting in the stock market if the existing market players gave
\nthe public the impression of honesty.<\/p>\n
In a meeting with executives of securities companies last
\nweek, he urged the securities firms to start opening client
\naccounts on the brokerage office because this would also
\nfacilitate market surveillance.<\/p>\n
\"It's interesting that the daily transaction volume increased
\nsignificantly, to an average of Rp 200 billion (US$85 million)
\ncurrently. Unfortunately, most big deals were done through cross
\ntransactions, not on regular board,\" he said.<\/p>\n
\"This implies that investors are more confident about direct
\nnegotiations than trading on the market,\" he added.<\/p>\n
Moreover, Putu said, although the transaction volume has
\nincreased, the number of client accounts in the brokerage house
\nhas yet to increase.<\/p>\n
\"So it also seems that brokerage houses might have played
\ntheir own portfolios,\" he added.<\/p>\n
He said that such practices most stop. (alo)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jsx-formulating-system-to-protect-public-interests-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }