Bapepam sanctions 10 securities firms

Bapepam sanctions 10 securities firms

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
said on Friday it had sanctioned ten investment managers for
violating capital market regulations.

Bapepam's law and legal aid bureau head Robinson Simbolon said
in a press statement that nine of the investment firms had their
operations suspended, while one had their license revoked by the
capital market watchdog.

He said the investment managers were found to be violating the
government regulation on capital market operation No. 45/1995,
which obliges an investment firm to have at least one director
and one employee, both of whom must possess a license to operate
as an investment manager representative.

Of the nine firms suspended, eight -- PT Bintang Nusantara
Securities, PT Finan Corpindo Nusa, PT Merrill Lynch Indonesia,
PT OCBC Sikap Securities, PT PDFCI Securities, PT Pranata
Securities, PT Primarindo Securities and PT UOBB Securities --
were ordered to cease operations for six months.

The ninth company, PT Orientama Inti Asset Management, was
ordered to halt operations for three months.

Should the firms fail to meet the requirements of the
regulation within the suspension period, Bapepam will consider
revoking their licenses, Robinson was quoted by Detik.Com as
saying.

Bapepam revoked the license of PT Amstell Securities for
violating the above regulation and for being found to have
"unknown whereabouts". The existing regulation obliges a
securities firm to inform Bapepam of its address.

Robinson also said PT Morgan Grenfell Astra Investment had
returned its business license to the agency following the firm's
liquidation. (iwa)