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Chapter VII
| (1) |
Settlement of
Securities Exchange Transactions may
occur by book-entry, physical delivery or
other means stipulated in Government
Regulations. |
| (2) |
A Clearing
Guarantee Institution must guarantee
settlement of Securities Exchange
Transactions. |
| (3) |
Procedures for
guaranteeing the settlement of Securities
Exchange Transactions mentioned in items
(1) and (2), shall be stipulated by
contracts with the Securities Exchange,
the Clearing Guarantee Institution, and
the Central Securities Depository. |
| (4) |
In guaranteeing the
settlement of Securities Exchange
Transactions as stipulated in item (2),
a Clearing Guarantee Institution may
require collateral from users of its
services. |
| (5) |
The contracts and
collateral guarantees mentioned in items
(3) and (4) shall be subject to
BAPEPAM approval. |
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Section Two
Collective Custody |
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| Article 56 |
| (1) |
Securities in
Collective Custody at a Central
Securities Depository shall be recorded
in the Issuer’s registry of
Security-holders in the name of the
Central Securities Depository as the
representative of its account-holders. |
| (2) |
Securities in
Collective Custody at a Custodian bank or
a Securities Company and posted to a
Securities account at a Central
Securities Depository, shall be
registered in such account in the name of
the Custodian bank or Securities Company
as the representative of its account
holders. |
| (3) |
Securities in
Collective Custody at a Custodian bank
that are part of a Securities Portfolio
under a collective investment contract
and that are not deposited in Collective
Custody at a Central Securities
Depository, shall be recorded in the
Issuer’s registry of
Security-holders in the name of the
Custodian bank as the representative of
owners of Participation Units of the
collective investment contract. |
| (4) |
Issuers must
provide either certificates or
confirmations to the Central Securities
Depository referred to in item (1)
or to the Custodian bank referred to in item
(3), as proof of registry in the
Issuer’s record of Security-holders. |
| (5) |
Central Securities
Depository, Custodian banks, and
Securities Companies must provide
account-holders with confirmations that
serve as proof of registry in the
Securities accounts mentioned in items
(1) and (2). |
Article 57 |
| Securities
In Collective Custody are interchangeable
with and equivalent to other Securities
of the same type and class of the same
Issuer. |
Article 58 |
| (1) |
A Custodian shall
record the transfer of ownership of
Securities in Collective Custody by
debiting and crediting the respective
Securities accounts with the number of
Securities transferred. |
| (2) |
On the instruction
of the Central Securities Depository or
Custodian bank, the Issuer must record on
its books, the transfer of Securities out
of Collective Custody, from the name of
the Central Securities Depository or
Custodian bank, to the name of the Person
indicated. |
| (3) |
An Issuer shall
refuse to record in Collective Custody,
Securities that have been reported lost
or destroyed, unless the Person
requesting such registry can provide the
Issuer with proof or a guarantee that it
considers sufficient. |
| (4) |
An Issuer shall
refuse to record in Collective Custody,
Securities that have been pledged,
blocked by court order, or seized as a
result of a criminal investigation. |
| (1) |
An account-holder
has the right to withdraw funds and
Securities at any time from his
Securities account at a Central
Securities Depository. |
| (2) |
Notwithstanding the
stipulation of item (1), a Central
Securities Depository may refuse to allow
funds to be withdrawn or to transfer
Securities from a Securities account,
when such assets are blocked, restricted,
or pledged. |
| (3) |
The blocking of a
Securities account as stipulated in
item (2), may only take place when
the Central Securities Depository
receives a written order from BAPEPAM or
a written request from the Head of the
Regional Police Force, the Chairman
of the High Prosecutor, or the Chairman
of the High Court, with respect to
civil or criminal court proceedings. |
| (1) |
Account holders
that have Securities in Collective
Custody are entitled to vote at the General
Meeting of Security-holders. |
| (2) |
Issuers, the
Central Securities Depository, Custodian
banks, and Securities Companies must
promptly distribute dividends, interest,
bonus shares and other ownership
entitlements on an account-holder’s
Securities in Collective Custody. |
Article 61 |
| Except
for Securities in the account of an
Investment Fund, Securities in Collective
Custody may be loaned or pledged. |
Article 62 |
| Issuers
must provide for Collective Custody in
their Articles of Association. |
Article 63 |
Further rules on Collective
Custody shall be stipulated by BAPEPAM
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