KPEI Re-Regulates Risk Parameters for Additions of Collateral in the Form of Mutual Fund Participation Units

Through the issuance of the Rule of PT Kliring Penjaminan Efek Indonesia (“KPEI”) No. II-12 on the Placement of Collateral for Stock Exchange Transactions Involving Equity-Based Securities, Investment Product Participation Units in the Form of Collective Investment Contracts, and Securities Lending and Borrowing (“Rule II-12”) and Rule of PT KPEI No. II-13 on Risk Calculations for Stock Exchange Transactions (“Rule II-13”), which add various risk parameters for collateral in the form of Mutual Fund Participation Units,[1] PT KPEI has now revised its policy on risk parameters. This policy revision is set out under Circular of PT KPEI No. SE-010/DIR/KPEI/0923 of 2023 on Risk Parameters (“Circular 10/2023”), which repeals and replaces the previous framework of Circular No. SE-006/DIR/KPEI/0523 (“Previous Circular”).

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