SSE, BPI to meet on merger plan<\/p>\n
JAKARTA (JP): The Surabaya Stock Exchange (SSE) and the over-
\nthe-counter market, Bursa Parallel Indonesia (BPI), will soon
\nhold extraordinary meetings of their respective shareholders to
\ndecide their merger plan.<\/p>\n
Executives of the two exchanges said over the weekend that
\ndetails on the plan of trading unification would also be
\ndiscussed during the meetings.<\/p>\n
SSE's president, Basiruddin A. Sarida, described the
\nshareholders' meetings as merely formality as both stock markets
\nhave reached a firm commitment to giving a positive response to
\nthe government's unification proposal.<\/p>\n
The government proposed recently the unification of the
\nSurabaya-based SSE and BPI in Jakarta to improve trading
\nliquidity and efficiency.<\/p>\n
Chairman of the Capital Market Supervisory Agency (Bapepam)
\nBacelius Ruru said that such unification should be carried out
\nbefore June.<\/p>\n
BPI was established in late 1990 by the association of money
\nand securities traders as the first over-the-counter (parallel)
\nmarket in the country.<\/p>\n
Its operation, however, has not been so successful and most
\nshare issuers still prefer listing their stocks on the Jakarta or
\nSurabaya Stock Exchanges. The number of companies listed on the
\nparallel market is less than 10.<\/p>\n
The SSE was established in 1989 as the first privately owned
\nstock market in the country and the only stock market located
\noutside Jakarta.<\/p>\n
Its operation relied much on the government's listing policy,
\nrequiring share issuers to list their shares on both Jakarta and
\nSurabaya markets during its early operation.<\/p>\n
The double listing facility was thwarted following the
\nprivatization of the Jakarta stock market in 1992.<\/p>\n
Trading on the Surabaya market is also not so active and most
\nof its share transactions take place in its Jakarta branch.<\/p>\n
Basiruddin said that the unified stock exchange will be based
\nin Surabaya while its transaction activities would be allowed in
\nthe exchange's branches.<\/p>\n
He said that the unified stock exchange will adopt an
\nelectronic trading system used by NASDAQ, the U.S. over-the-
\ncounter stock market.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sse-bpi-to-meet-on-merger-plan-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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