Minimum capital for securities firms raised<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nplans to increase the minimum net-adjusted working capital of the
\ncountry's securities companies to Rp 5 billion (US$357,000) from
\nRp 500 million at present.<\/p>\n
The capital market watchdog's chairman, Jusuf Anwar, said the
\nincrease in the net-adjusted working capital was necessary to
\nboost their financing capacity and credibility.<\/p>\n
\"With a large capital, the public will be more secure in
\ndealing with securities companies,\" he told journalists after a
\nhearing between Minister of Finance Bambang Subianto and House of
\nRepresentatives Commission VIII for finance and the state budget
\nTuesday night.<\/p>\n
He, however, did not set a timeframe for the new capital
\nrequirement to be met.<\/p>\n
\"Besides that, it is also aimed at preventing securities
\nhouses from breaching capital market regulations,\" he said.<\/p>\n
Capital market fraud often takes place because securities
\ncompanies with a poor capital base do not want to take
\nresponsibility for the failure of any of their customers to
\nsettle accounts.<\/p>\n
Jusuf noted that other small securities houses with poor
\ncapital bases were required to merge with other securities
\ncompanies to meet the new net-adjusted working capital
\nrequirement.<\/p>\n
Meanwhile, Jakarta Stock Exchange (JSX) director Felia Salim
\ntold The Jakarta Post yesterday that 12 listed companies had been
\nwarned about their poor financial performance and the absence of
\nauditors' comments in their 1997 financial reports.<\/p>\n
Three of the 12 companies were warned due to the absence of
\nauditors' comments. They included PT Sekar Laut, PT Sekar Bumi
\nand Sarasa Nugraha. The other nine were warned about their poor
\nperformance. They were Pan Brothers Tex, Bumi modern, BBL
\nDharmala Finance, Cipendawa Farm Enterprise, Asian Multi Kreasi,
\nVoksel Electric, Japfa Comfeed, Supreme Cable Manufacturing Corp
\nand Sorini Corporation.<\/p>\n
She said the three companies should explain why their auditors
\ndid not include their opinions in the reports and if they failed
\nto report by today they would be delisted.<\/p>\n
A public accountant should put a \"unqualified\" or \"qualified\"
\nopinion on financial reports of companies they audit.<\/p>\n
\"Just wait for the next two days. If they can give us reasons,
\nthey will not be suspended, but if not, they will be suspended,\"
\nshe said.<\/p>\n
She said the nine companies should improve their financial
\nperformance or face delisting. (aly)<\/p>",
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