Bapepam to rule security trading
Bapepam to rule security trading
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
is now preparing at least six rules to regulate asset-backed
securities trading.
Agency chairman I Putu Gede Ary Suta said yesterday the rules
were needed to ensure the trading of the asset-backed instruments
would not hurt the investing public.
"I cannot tell you yet what rules we are working on but for
sure they are needed because the trading of the asset-backed
securities is still new here," he told journalists after
addressing a conference on asset-backed securitization here.
Putu said the regulations on the asset-backed securities
trading would cover many aspects such as legal, tax, accounting
and the quality of assets and people involved in the asset
securitization.
But he declined to say when the trading of the new debt
instrument would be launched.
Asset-backed securities are bonds or debt securities
collateralized by the cash flow from a pool of either auto loans,
credit card receivables, vehicles and equipment leases, consumer
loans or other obligations.
Putu said Bapepam had set up two committees -- product
development and contingency plan committees -- to prepare the new
regulations.
Businesspeople were also invited to join the committee because
they would be directly involved in asset securitization.
"Input from businesspeople is welcomed to create reliable
trading rules," he said.
He said product development would assess the market's need and
observe the trend of asset-backed securities activities in the
country and international markets.
"This committee is expected to give input to the agency on how
the trading of assets-backed securities are made," he said.
He said the task of the contingency plan committee was to
socialize and broaden the public's awareness that investing in
the capital market also involved risk.
"The contingency plan committee will socialize the concept
that investing in the capital market does not merely offer profit
but risk as well," he said. (aly)