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Chapter VI
CAPITAL MARKET
SUPPORTING INSTITUTIONS
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Section One
Custodians |
Paragraph 1 |
| Approval |
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| Article 43 |
| (1) |
Only a Central
Securities Depository, a Securities
Company or a Commercial bank approved by
BAPEPAM may carry on business as a
Custodian. |
| (2) |
Further
requirements and procedures for approving
commercial banks as Custodians shall be
stipulated in Government Regulations. |
Paragraph 2 |
| Securities
in Custody |
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| Article 44 |
| (1) |
A Custodian is
responsible for safekeeping an
account-holder’s Securities and for
fulfilling the conditions of the
account-holder’s contract with the
Custodian. |
| (2) |
Securities on
deposit must be maintained and recorded
separately. |
| (3) |
Securities in
safekeeping or posted to a Securities
account with a Custodian are not part of
the Custodian’s assets. |
Article 45 |
| A
Custodian may deliver Securities or funds
recorded in a Securities account only
upon written instruction from the
account-holder or from a Person
authorized to act in the
account-holder’s name. |
Article 46 |
| A
Custodian must reimburse account-holders
for losses resulting from the
Custodian’s mistake. |
Article 47 |
| (1) |
A Custodian or an
Affiliated Person may not give out
information on a client’s Securities
account to any Person other than: |
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a. |
a Person authorized
in writing by the account-holder or his
heirs; |
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b. |
the police, public
prosecutor or a judge with regards to
criminal proceedings; |
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c. |
the Court with
regards to civil proceedings on request
of the disputing Persons; |
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d. |
tax officials for
tax purposes; |
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e. |
BAPEPAM, a
Securities Exchange, a Clearing Guarantee
Institution, an Issuer, a Securities
Administration Agency or another
Custodian in the execution of their
respective functions; or |
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f. |
a Person serving
the Custodian, including a consultant, a
legal advisor and a public accountant. |
| (2) |
Other than as
necessary in carrying out their duties,
Persons mentioned in letters a through
f of item (1) may not disclose
information received from a Custodian or
an Affiliate concerning a client’s
Securities account. |
| (3) |
Requests for
information on clients’ Securities
accounts referred to in letters b, c,
and d of item (1) shall be
submitted for approval to BAPEPAM by the Commander-in-Chief
of the Police Force of the Republic of
Indonesia, the Attorney General,
the Chairman or official of the Supreme
Court, or the Director General of
Taxation, stating the name and rank
of the police officer, prosecutor, judge,
or tax official, and the name or number
of the account-holder and the reasons and
justification for the request.. |
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Section Two
Securities
Administration Agencies |
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| Article 48 |
| (1) |
Only a Company that
is licensed by BAPEPAM may carry on
business as a Securities Administration
Agency. |
| (2) |
Further
requirements and procedures for the
Securities Administration Agency license
referred to in item (1) shall be
stipulated in Government Regulations. |
| (1) |
A Securities
Administration Agency may record
Securities ownership in the Issuer’s
register of Security-holders, and may
distribute entitlements on such
Securities, in accordance with the
written contract between the Issuer and
the Securities Administration Agency; |
| (2) |
The contract
mentioned in item (1) must clearly
indicate the rights and obligations of
the Securities Administration Agency and
the Issuer, as well as their duties to
Security-holders. |
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Section Three
Trust-Agents |
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| Article 50 |
| (1) |
The function of
Trust-Agent may be performed by: |
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a. |
a commercial bank;
and |
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b. |
any other Person
permitted by Government Regulation |
| (2) |
Commercial banks or
other Persons mentioned in item (1)
must register with BAPEPAM before acting
as a Trust-Agent. |
| (3) |
Further
requirements and procedures for the
registration of Trust-Agents shall be
stipulated in Government Regulations. |
| (1) |
A Trust-Agent may
not be Affiliated with an Issuer, except
for Government-owned Trust-Agents. |
| (2) |
A Trust-Agent shall
represent the interests of the credit
Security-holders in and out of court. |
| (3) |
A Trust-Agent may
not have any credit relationship with an
Issuer that exceed limits set by BAPEPAM
as representing a possible conflict of
interests between the Trust-Agent as
creditor and as a representative of
credit Security-holders. |
| (4) |
The use of
Trust-Agent services shall be regulated
by BAPEPAM. |
Article 52 |
| The terms
of the trust-agency agreement between an
Issuer and a Trust-Agent shall be
regulated by BAPEPAM. |
Article 53 |
| A
Trust-Agent must reimburse credit
Security-holders for losses due to its
negligence in performing its duties under
this Law and the implementing regulations
or under the terms of the Trust-Agency
agreement. |
Article 54 |
A Trust-Agent may not
represent the interests of both the
holders and guarantors of the same credit
Securities.
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