In 1999, Bapepam revised 3 Rules and issued 2 new Rules. The revised Rules were Rule. III.A.3. regarding Commissioners and Directors of Stock Exchanges, Rule. V.D.4 regarding Control and Protection of Securities Kept by Securities Companies, and Rule V.D.5 regarding Maintenance and Reporting of Net Adjusted Working Capital. The new Rules are Rule. XIV.B.1 regarding Procedures for Collecting Administrative Fines and Rule V.D.7 regarding Guidelines for Subordinated Loan Agreement of Securities Companies.

The revision of Rule No. III.A.3 was intended to encourage professional, effective and efficient management of the stock exchanges. The rule specifies the method to be used in recruiting and selecting commissioners and directors of the stock exchanges, nominating procedures for candidates, and specifies duties of directors.

The revision of Rule V.D.4 relates to the obligations of securities companies in accounting for segregation of clients’ securities in custody. The revision of Rule V.D.5 main to Form V.D.5-3 and V.D.5-4 and postponed implementation of the rule until April, 2000.

The issuance of Rule XIV.B.1 specified procedures for imposing fines with respect to violation of capital market regulations and to improve collection of fines that has been imposed. This rule requires that fines be paid with in 30 days.

Rule V.D.7 established standards for subordinated loans that are applicable in the assesment of net adjusted working capital of securities companies.

Bapepam was active in investigating of suspected violations of capital market regulations and conducted investigations based on reports and information, of which four cases have been closed and six cases are still on going. In addition, Bapepam actively conducted regular surveillance of trading on the stock exchanges.

One of the cases that attracts national and international attention involved PT Bank Bali Tbk. Bapepam had submitted the case to the Attorney General on December 16, 1999 for prosecution with respect to failure of issuer to disclose information to Bapepam about agreement of transferring its receivable asset to other party.

In 1999, Bapepam revoked three licenses of broker-dealers’ representative, five licenses of securities companies, and nine approvals of custodian banks. In addition, Bapepam issued official warnings to four issuers, 27 securities companies, and one Registered Public Accountant, suspended activity to six securities companies and imposed fines on 187 issuers, 25 securities companies, seven securities administration agencies, four custodian banks, two trust agents, and two investment managers. Bapepam also cancelled the registration of a legal consultant at the registrant own request.

In 1999, three commercial legal actions brought against Bapepam, of which one case is still pending, one case was appealed to a higher court, and one case was refused by the Court.

© 1999 Bapepam, All Rights Reserved. Notice.