- In a bid to accommodate margin transactions that are undertaken by members of the Stock Exchange ("Exchange"), the Board of Directors of PT Bursa Efek Indonesia ("BEI") has finally issued Decree No. Kep-00044/BEI/08-2022 ("Decree 44/2022"), which establishes a number of additional provisions to the Rules of the Exchange No. III-I on Margin Membership and/or Short Selling ("Rule III-I").
- In terms of the new provisions (Section IV.5), Exchange members who have secured approval letters for the conducting of margin transactions may undertake margin transactions based on the daily adjusted net working capital (Modal Kerja Bersih Disesuaikan – "MKBD") values for positions during the previous trading day, as held by the Exchange members concerned, and are also required to comply with the following conditions: 1) Exchange members who have MKBD values of Rp. 250 billion or more may undertake margin transactions on margin securities that meet the requirements that are stipulated in Provision III.1. Rule No. II-H on Requirements and Securities Trading for Margin Transactions and Short Selling Transactions (“Rule II-H”); 2) Exchange members who have MKBD values of less than Rp. 250 billion may only undertake margin transactions on margin securities that meet the requirements that are stipulated in Provision III.1. of Rule II-H and that have been included on the LQ-45 index securities list; or 3) Exchange members who have MKBD values of between Rp. 50 billion and Rp. 250 billion may only undertake margin transactions on margin securities that meet the requirements that are stipulated in Provision III.1. of Rule II-H and that have not been included on the LQ-45 index securities list but that have been included on the IDX80 index securities list, provided that Exchange members utilize funding facilities provided by securities funding institutions as a source of transaction financing margin that is given to customers for securities that have not been included on the LQ-45 index securities list.
- Provisions on the conducting of margin transactions by Exchange members other than those stipulated under Decree 44/2022 are subject to Rule III-I (Appendix to the Decree of the Board of Directors of BEI No. Kep-00022/BEI/02-2017).
- Decree 44/2022 officially comes into force on 1 September 2022.
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