Bond Transactions Reporting - Bapepam Draft Regulation

In an effort to create a culture of good corporate governance and greater levels of transparency and accountability the Capital Market Supervisory Agency (Bapepam) has issued a Draft of a Regulation that is intended to govern the reporting of bond transactions.

The primary features of the Regulation cover matters of ownership, particularly where ownership changes hands as a result of sale or purchase, a grant, an inheritance, voluntary exchange, and as ordered by a competent court. However, it is not only a change of ownership that must be reported as when used for loans or borrowings and when the bonds are accounted for in bookkeeping records in some different manner.

Every party that executes a bond transaction either on the secondary market or in some other manner is required to report the transaction completed. The Regulation sets out explicit elements for reporting where the transaction involves a discretionary fund.