Capital Market and Financial Institutions Supervisory Agency (Indonesian : Badan Pengawas Pasar Modal dan Lembaga Keuangan) (shortly BAPEPAM-LK) is an institution under the Ministry of Finance (Indonesia) tasked with fostering, regulating, and supervising day-to-day capital market activities as well as formulating and implementing policies and technical standardization in the field of financial institutions. The current Chairman of Bapepam-LK is Nurhaida. [1]
Bapepam-LK was a merger of the Capital Market Supervisory Agency (Bapepam) and the Directorate General of Financial Institutions. Currently, Bapepam-LK is replaced by the Financial Services Authority (Indonesia) (OJK) since the enactment of Law of the Republic of Indonesia Number 21 of 2011.
The functions of Bapepam-LK are: [2]
Bapepam-LK consisting of 1 Chairman of the Agency and overseeing 1 Secretariat and 12 Technical Bureaus, where the scope of guidance and supervision includes aspects of capital markets, pension funds, insurance, banking and business financing services and venture capital.
The Bapepam-LK technical bureau consists of: [2]
The authority of Bapepam-LK is listed in Chapter II of the Capital Market Law (Indonesian : Undang-Undang Pasar Modal) (UUPM), which in outline covers about 9 areas, as follows: [3]
a. Authority to issue business licenses for stock exchanges and supporting institutions
b. Authority to issue individual licenses for deputy underwriters, deputy broker-dealers, and deputy investment managers.
c. Authority to approve the establishment of a custodian bank
d. The authority to approve the nomination and dismissal of commissioners, directors, and appoint temporary management of stock exchanges, clearing and guarantee institutions, depository and settlement institutions until new commissioners and directors are elected.
e. The authority to examine and investigate each party in the event of a violation of the Capital Markets Law.
f. The authority to freeze or cancel the listing of certain securities
g. Authority to stop stock exchange transactions on certain securities
h. The authority to stop stock exchange trading activities in an emergency
i. The authority to act as an appeal institution for parties sanctioned by the stock exchange and clearing and guarantee institutions.
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