ID :
54538
Thu, 04/09/2009 - 11:16
Auther :
Shortlink :
https://www.oananews.org//node/54538
The shortlink copeid
BEI TO PUSH THROUGH NEW REGULATIONS ON SHORT SELLING
Jakarta, April 8 (ANTARA) - The Indonesia Stock Exchange (BEI) will push through its plan to implement new regulations on short selling and margin trading as of May 1, 2009 despite bourse members' calls for a postponement.
"There is no change in our plan. It will be implemented as of May 1 in line with the regulations of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK)," BEI's director of stock trading, research and development, M.S. Sembiring, said here on Wednesday.
Earlier, exchange members grouped in the Association of Indonesian Securities Companies (APEI) had asked the BEI to review the new regulations as they were considered too strict. Besides, the regulations still had to provide a more comprehensive system for its implementation by exchange members.
Sembiring said BEI planned to implement two regulations, namely Regulation II-H on Requirements and Stock Trading in margin and short selling trading and Regulation III-I on Margin and Short Selling Membership.
The new regulations would be effective May 1. The regulations were made following a slump in the capital market in October 2008. In the money market authorities' view, the two kinds of trading held high risks and therefore needed to be regulated.
Besides underlying securities and shares the authorities would also regulate securities companies or brokers that will be allowed to conduct margin and short selling transactions.
Sembiring said the new regulations would make several changes to facilities given to stock market players before.
So far, margin and short selling transactions are only based on liquidity analysis but under the new regulations fundamental analyses would be required.
"There is no change in our plan. It will be implemented as of May 1 in line with the regulations of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK)," BEI's director of stock trading, research and development, M.S. Sembiring, said here on Wednesday.
Earlier, exchange members grouped in the Association of Indonesian Securities Companies (APEI) had asked the BEI to review the new regulations as they were considered too strict. Besides, the regulations still had to provide a more comprehensive system for its implementation by exchange members.
Sembiring said BEI planned to implement two regulations, namely Regulation II-H on Requirements and Stock Trading in margin and short selling trading and Regulation III-I on Margin and Short Selling Membership.
The new regulations would be effective May 1. The regulations were made following a slump in the capital market in October 2008. In the money market authorities' view, the two kinds of trading held high risks and therefore needed to be regulated.
Besides underlying securities and shares the authorities would also regulate securities companies or brokers that will be allowed to conduct margin and short selling transactions.
Sembiring said the new regulations would make several changes to facilities given to stock market players before.
So far, margin and short selling transactions are only based on liquidity analysis but under the new regulations fundamental analyses would be required.
