Sign up | Log in



Home  >>  Daily News  >>  Indonesia News  >> Capital Markets  >> Indonesia: Market regulator to tighten rules on transparency

NEWS UPDATES 6 October 2009

Indonesia: Market regulator to tighten rules on transparency

Related Stories

October 3, 2009
Indonesia central bank may keep rate as inflation accelerates

September 27, 2009
Indonesia sees benefits from new G20 framework

September 4, 2009
Indonesia’s food giant to spin off noodle unit

August 29, 2009
Indonesian firms seen eyeing BHP project

August 19, 2009
Indonesian noodle giant buys plantation firm

Indonesia’s stock market regulator, Bapepam, is planning to introduce a stricter regulation on transparency and accountability that will require financial services institutions in the capital market to verify data regarding their clients, the Jakarta Post reported.

The regulation, which will be an amendment to the existing one, will oblige securities firms, mutual fund managers and custodian banks to collect and verify all the information about their investors before confirming them as their clients and allowing them to open accounts.

Required data would include the background of the investors, the sources of their funds, and their investment objectives or purposes, which would then need to be substantiated with supporting documents.

Bapepam will be able impose sanctions on those who fail to comply, a point which is absent in the existing regulation. Sanctions will vary from warnings to penalties including fines.

The draft of the regulation, obtained by the Jakarta Post indicates that the amendment aims to prevent the inflow of investment funds possibly related to money laundering practices or terrorism.

It also says that the securities companies and other financial institutions will have six months to adjust their practices to comply with the new system from the time it is introduced, which is planned for November. In the meantime, Bapepam will ask for inputs from the industry players about the new ruling.


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand