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Chapter II
THE
CAPITAL MARKET
SUPERVISORY AGENCY
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| (1) |
The Capital
Market Supervisory Agency,
hereinafter referred to as BAPEPAM, shall
provide guidance, regulation, and
day-to-day supervision of the Capital
Market. |
| (2) |
BAPEPAM reports and
is responsible to the Minister. |
Article 4
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| In
providing the guidance, regulation and
supervision specified in Article 3,
BAPEPAM shall act with the purpose of
ensuring that the Capital Market is
orderly, fair, and efficient and that the
interests of investors and the public are
protected. |
Article 5 |
| In order
to carry out the provisions of Articles
3 and 4, BAPEPAM shall have authority
to: |
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1) |
business licenses
to Securities Exchanges, Clearing
Guarantee Institutions, a Central
Securities Depository, Investment Funds,
Securities Companies, Investment
Advisors, and Securities Administration
Agencies; |
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2) |
individual licenses
to Underwriter’s Representatives,
Broker-Dealer’s Representatives, and
Investment Manager’s
Representatives; and |
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3) |
approvals to
Custodian banks; |
| b. |
require the
registration of Capital Market Supporting
Professionals and Trust-Agents; |
| c. |
establish
qualifications and nominating procedures
for directors and commissioners of
Securities Exchanges, Clearing Guarantee
Institutions, the Central Securities
Depository, as well as the procedures for
suspending such officials and for
appointing interim management until the
election of new commissioners or
directors. |
| d. |
establish the
requirements and procedures regarding
Registration Statements and declare,
delay, or cancel the effectiveness of
such Registration Statements. |
| e. |
inspect and
investigate any Person with respect to
suspected violations of this Law or its
implementing regulations; |
| f. |
require any Person
to : |
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1) |
suspend and/or
correct any advertisement or promotion
related to the Capital Market; or |
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2) |
take actions
necessary to remedy the effects of such
advertisement or promotion; |
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1) |
Issuers and Public
Companies that have submitted or that are
required to submit a Registration
Statement to BAPEPAM; or |
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2) |
Persons that, under
this Law, are required to have a business
or individual license, or to be approved,
or to be registered as a professional; |
| h. |
authorize a Person,
under powers granted to BAPEPAM in letter
g, to conduct an inspection; |
| i. |
publish findings of
inspections; |
| j. |
suspend or cancel
the listing of a Security on a Securities
Exchange or suspend trading in a Security
on an Exchange for a certain period, in
order to safeguard investors’
interests; |
| k. |
suspend all trading
on a Securities Exchange in times of
emergency;. |
| l. |
investigate
petitions for relief from Persons
sanctioned by a Securities Exchange, a
Clearing Guarantee Institution, or a
Central Securities Depository and decide
whether to revoke or sustain such
sanctions; |
| m. |
set fees for the
granting of licenses, approvals,
registrations, and fees for inspections
and examinations, and other fees related
to the Capital Market. |
| n. |
take steps
necessary to avert loss to the public
arising from violation of Capital Market
regulations; |
| o. |
provide technical
interpretations regarding this Law and
its implementing regulations; |
| p. |
define other
instruments as Securities, in addition to
those mentioned in Article 1 item 5;
and |
| q. |
do any other act
required by this Law. |
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