The Financial Services Authority’s (OJK) office. (kontan.co.id/File)
The Financial Services Authority (OJK) is preparing three regulations on medium-term notes (MTN), electronic bookbuiling (e-bookbuiling) and disgorgement funds, which are scheduled to be issued in the third quarter.
OJK stock market supervision executive head Hoesen said the authority needed to issue the regulations so that it could supervise financial services.
He gave the example that under the planned regulation, the issuance of an MTN should be reported to the OJK. “It will be similar to bond issuers, who are also required to report to the OJK,” Hoesen said as reported by kontan.co.id.
Any public fundraising should be regulated, including through MTN issuance, he said, adding that with such a regulation, the OJK could rule on a dispute, such as when PT Sunprima Nusantara Pembiayaan failed to pay an MTN worth Rp 1.8 trillion (US$127.51 million).
Meanwhile, the issuance of the e-bookbuilding regulation was expected to create transparency in deciding stock prices, Hoesen said.
Under the regulation, retail investors can purchase up to 40 percent of shares through an initial public operating and it could be increased to 60 percent if the shares are oversubscribed, he said.
However, he added that the regulation would be implemented in stages.
On the disgorgement fund regulation, Hoesen said the OJK had disseminated the draft of the regulation in March.
“The response to the draft varied,” he said, adding that the regulation was needed to protect investors.
“If the regulation is agreed on by the stakeholders, there will be an institution or curator that will measure the degree of losses and fines,” he added.
The final goal of the regulation was the establishment of a stock exchange court like the Securities and Exchange Commission in the United States, he added. (bbn)