5 brokerage campanies suspended

5 brokerage campanies suspended

JAKARTA (JP): The Capital Market Supervisory Agency
temporarily suspended yesterday five brokerage companies for
their poor performance.

The agency said that the five companies, PT Artha Adya, PT
Creative Securities, PT Danagajah Sakti, PT Pancasumber
Dhanamandiri and PT Saranadana Investindo, no longer met the
operational standards.

None of the five brokerage houses, for example, had carried
out any activities for at least one month in a year, the agency
said.

Agency chairman I Putu Gede Ary Suta said earlier the
companies had been repeatedly warned to improve their operations
but to no avail.

Last year, the agency warned about 17 securities houses to
improve their operations and set clear business plans.

They included Aperdi, Artha Adyanugraha, Arya Shinta Finance,
Asprina Prima Sentosa, Aldiracita Corporitama, Danagajah Sakti,
Garudapara Investindo, Interindo Danapaya, Putera Master
Sekuritas, Sekurindo Pratama and Srikandi Securities Investindo.

Early last month, the agency urged shareholders of small
securities houses to inject fresh funds into their businesses to
strengthen their capital in a bid to improve their operations in
the capital market.

Securities houses, by regulation, are required to have a
minimum paid-up capital of Rp 10.5 billion.

He said around 100 securities firms, or almost half of the 214
securities houses at the Jakarta Stock Exchange, were operating
with a weak capital structure.

If these firms do not increase their capital, it is predicted
that they will face problems when trading activities increase,
Putu said. (aly)