JSX to confirm amount of equity participation<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) will confirm
\nthe amount of its equity participation in the Clearing and
\nGuarantee and Central Custodian houses at the next shareholders'
\nmeeting.<\/p>\n
The two new houses which are required by the new capital
\nmarket law will handle the clearing and settlement of
\ntransactions, duties which are currently held by the Indonesian
\nSecurities Clearing Depository (KDEI).<\/p>\n
KDEI, founded in 1993, is controlled by seven state banks --
\nBank Bumi Daya (13.34 percent), Bank Dagang Negara (13.34
\npercent), Bank Exim (13.33 percent), Bank Negara Indonesia (13.3
\npercent) Bapindo (13.33 percent), Bank Rakyat Indonesia (13.33
\npercent), Bank Tabungan Negara (13.33 percent).<\/p>\n
JSX and the Surabaya stock exchange own only five percent and
\n1.6 percent respectively.<\/p>\n
In 1994 the house adopted a netting system for the settlement
\nof all shares listed on the JSX. It is now preparing a book entry
\nsettlement system which is expected to be effective when the
\nstock exchanges begin scripless trading.<\/p>\n
The new capital market law stipulates the establishment of two
\ndifferent houses to carry out the function of the existing KDEI.<\/p>\n
The law also states that stock exchanges must become the
\nmajority shareholders of the Clearing and Guarantee house because
\nits role is closely related to the exchange's activities.<\/p>\n
According to the law, custodian banks, securities companies,
\nand securities registration offices are allowed to have equity
\nparticipation in these two houses.<\/p>\n
It also stipulates that other parties will also be allowed if
\nthe total equity from these parties is not sufficient.<\/p>\n
The Chairman of the Indonesian Capital Market Supervisory
\nAgency (Bapepam) I Putu Gede Ary Suta said recently that the
\nagency had set the establishment of these two houses as its
\npriority program after issuing a number of new regulations.<\/p>\n
The JSX's president Hasan Zein Mahmud said that for the equity
\nparticipation in the clearing and guarantee house alone, JSX
\nshould allocate some Rp 15 billion (US$6.4 million).<\/p>\n
Equity participation is one of the eight proposals to be
\napproved in the JSX annual shareholders' meeting to be held in
\nmid April, informed sources said yesterday.<\/p>\n
In the meeting, the shareholders will also elect new directors
\nand commissioners. (08)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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