Minimum capital for securities firms raised
Minimum capital for securities firms raised
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
plans to increase the minimum net-adjusted working capital of the
country's securities companies to Rp 5 billion (US$357,000) from
Rp 500 million at present.
The capital market watchdog's chairman, Jusuf Anwar, said the
increase in the net-adjusted working capital was necessary to
boost their financing capacity and credibility.
"With a large capital, the public will be more secure in
dealing with securities companies," he told journalists after a
hearing between Minister of Finance Bambang Subianto and House of
Representatives Commission VIII for finance and the state budget
Tuesday night.
He, however, did not set a timeframe for the new capital
requirement to be met.
"Besides that, it is also aimed at preventing securities
houses from breaching capital market regulations," he said.
Capital market fraud often takes place because securities
companies with a poor capital base do not want to take
responsibility for the failure of any of their customers to
settle accounts.
Jusuf noted that other small securities houses with poor
capital bases were required to merge with other securities
companies to meet the new net-adjusted working capital
requirement.
Meanwhile, Jakarta Stock Exchange (JSX) director Felia Salim
told The Jakarta Post yesterday that 12 listed companies had been
warned about their poor financial performance and the absence of
auditors' comments in their 1997 financial reports.
Three of the 12 companies were warned due to the absence of
auditors' comments. They included PT Sekar Laut, PT Sekar Bumi
and Sarasa Nugraha. The other nine were warned about their poor
performance. They were Pan Brothers Tex, Bumi modern, BBL
Dharmala Finance, Cipendawa Farm Enterprise, Asian Multi Kreasi,
Voksel Electric, Japfa Comfeed, Supreme Cable Manufacturing Corp
and Sorini Corporation.
She said the three companies should explain why their auditors
did not include their opinions in the reports and if they failed
to report by today they would be delisted.
A public accountant should put a "unqualified" or "qualified"
opinion on financial reports of companies they audit.
"Just wait for the next two days. If they can give us reasons,
they will not be suspended, but if not, they will be suspended,"
she said.
She said the nine companies should improve their financial
performance or face delisting. (aly)