10 firms to begin scripless trading soon
10 firms to begin scripless trading soon
JAKARTA (JP): Ten major companies listed on the Jakarta Stock
Exchange (JSX) will enter scripless trading in October, this
year.
The president of the Indonesian Central Securities Depository
(KSEI) Erry Firmansyah said on Thursday that the conversion of
the companies' shares into scripless format would start early
next month.
The 10 companies are PT Indofood Sukses Makmur, PT Indosat, PT
Sinar Mas Agro Resources and Technology, PT Bank Panin, PT
Berlina, PT Matahari Putra Prima, PT Astra Internasional, PT Jaya
Pari Steel Corp. Ltd., PT Adindo Foresta Indonesia and PT
Telekomunikasi Indonesia.
Erry said the 10 companies would be the second batch of firms
listed on the JSX to be traded under a scripless system.
The first batch, which were launched on July 17, included PT
Multipolar, PT Dankos Laboratories, PT Suparma and PT Sari
Husada.
"After succeeding with the first four companies, KSEI will
start its second batch," Erry announced in a news meeting held in
conjunction with the 23rd anniversary of the Capital Market
Supervisory Agency (Bapepam).
In scripless trading, the certificates of ownership of the
shares are kept in an electronic share account under a specified
investor at KSEI, whereas the current format locates the
certificates of ownership in the traditional custodian bank.
By October, investors holding the shares of the 10 companies
cannot trade their shares unless they have registered their
ownership in the new format.
Indofood will be the first company in the second batch to
start its scripless trading by Sept. 29, and Telkom the last with
a target for Oct. 24.
Bapepam chairman Herwidayatmo said the changeover to a
scripless format would help create a more efficient stock market.
"The step by step implementation of scripless trading and
settlement will be continued because it involves many parties and
concerns a cultural change in trading," Herwidayatmo said.
But he warned that the conversion to scripless trading would
lower the stock trading of the companies that make the
transition.
"It's quite normal. Any change in the trading system is bound
to affect investors who are not used to it," he explained.
Herwidayatmo added that the transition period was simply the
price everyone had to pay before the benefits of scripless
trading could be felt.
During the news meeting, Herwidayatmo also addressed the
importance of good corporate governance for publicly listed
companies.
He suggested that companies form an audit committee to offer
the board of commissioners professional and independent opinions
on the company's management quality.
Herwidayatmo also announced that for this year alone, Bapepam
had issued fines amounting to Rp 10.2 billion (US$1.18 million)
to 131 parties for violating existing stock market
regulations.(bkm)