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Chapter III
SECURITIES
EXCHANGES,
CLEARING GUARANTEE INSTITUTIONS
AND CENTRAL SECURITIES DEPOSITORY |
Section One
Securities
Exchanges
Paragraph 1
Licensing |
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| Article 6 |
| (1) |
Only a Company that
has been granted a business license by
BAPEPAM may carry on business as a
Securities Exchange. |
| (2) |
Requirements and
procedures for the licensing referred to
in item (1) with respect to Securities
Exchanges shall be determined in
Government Regulations. |
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Paragraph 2
Purpose
and Ownership |
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| Article 7 |
| (1) |
Securities
Exchanges shall be founded for the
purpose of organizing an orderly, fair
and efficient trading market for
Securities. |
| (2) |
To achieve the
purposes mentioned in item (1), a
Securities Exchange must supervise
Members’ activities and provide them
with facilities. |
| (3) |
A Securities
Exchange must submit an annual budget and
profit-utilization plan to BAPEPAM
according to BAPEPAM rules |
Article 8 |
| Only
Securities Companies that are licensed as
Broker-Dealers may be shareholders of a
Securities Exchange. |
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Paragraph 3
Securities
Exchange Rules and Inspection Units |
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| Article 9 |
| (1) |
A Securities
Exchange must make rules on Membership,
listing, fungibility of Securities,
clearing and settlement of Exchange
Transactions, and related Exchange
matters. |
| (2) |
Securities
Exchanges shall determine the procedures
for transferring Securities in connection
with Exchange Transactions. |
| (3) |
Securities
Exchanges may set listing fees,
Membership dues, Transaction fees, and
service charges. |
| (4) |
Fees and dues
referred to in item (3) shall be in
accordance with functional needs of the
Securities Exchange. |
Article 10 |
| A
Securities Exchange may not restrain
beneficial competition nor restrict its
Members from joining other Securities
Exchanges. |
Article 11 |
| Securities
Exchange rules and rule changes become
effective when approved by BAPEPAM. |
Article 12 |
| (1) |
A Securities
Exchange must have an inspection unit
that is responsible for periodic and
surprise inspections of the Exchange and
its Members. |
| (2) |
The supervisor of
the inspection unit shall report directly
to the boards of directors and
commissioners of the Securities Exchange,
and to BAPEPAM, whenever matters are
discovered that could materially affect a
Member or the Exchange. |
| (3) |
Securities
Exchanges must make inspection reports
available to BAPEPAM on request. |
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Section Two
Clearing
Guarantee Institutions, and The Central
Securities Depository
Paragraph 1
Licensing |
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| Article 13 |
| (1) |
Only a Company that
is licensed by BAPEPAM may act as a
Clearing Guarantee Institution or a
Central Securities Depository. |
| (2) |
Procedures and
requirements for the licensing referred
to in item (1) with respect to a
Clearing Guarantee Institution and a
Central Securities Depository shall be
stipulated in Government Regulations. |
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Paragraph 2
Purpose
and Ownership |
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| Article 14 |
| (1) |
A Clearing
Guarantee Institution is established for
the purpose of providing clearing
services that are orderly, fair and
efficient and of guaranteeing settlement
of Exchange Transactions. |
| (2) |
A Central
Securities Depository is established for
the purpose of providing central
Custodian services and orderly, fair and
efficient services relating to the
settlement of Transactions. |
| (3) |
Clearing Guarantee
Institutions and Central Securities
Depository may provide other services in
accordance with BAPEPAM rules. |
| (4) |
A Clearing
Guarantee Institution as well as a
Central Securities Depository must submit
an annual budget and profit-utilization
plan to BAPEPAM in accordance with
BAPEPAM regulations. |
| (1) |
Securities
Exchanges, Securities Companies,
Securities Administration Agencies,
Custodian banks or others approved by
BAPEPAM, may be shareholders of a
Clearing Guarantee Institution and a
Central Securities Depository. |
| (2) |
The majority of the
shares of a Clearing Guarantee
Institution must be owned by a Securities
Exchange. |
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Paragraph 3
Rules
of Clearing Guarantee Institutions and
The Central Securities Depository |
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| Article 16 |
| (1) |
A Clearing
Guarantee Institution must make rules on
clearing and on the guaranteed settlement
of Exchange Transactions, and its service
charges. |
| (2) |
A Central
Securities Depository must make rules on
central Custodian services and Securities
Transaction settlement services, and its
service charges. |
| (3) |
The charges
mentioned in items (1) and (2)
shall be compatible with the functional
requirements of the Clearing Guarantee
Institution and the Central Securities
Depository. |
Article 17 |
| Rules of
a Clearing Guarantee Institution or a
Central Securities Depository, and
amendments thereof, become effective when
approved by BAPEPAM. |
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