Financial Services Authority Regulation Number 6/POJK.04/2019 on Price Stabilization to Facilitate Public Offerings

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 6 /POJK.04/2019
ON
PRICE STABILIZATION TO FACILITATE PUBLIC OFFERINGS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the capital market sector, including regulation regarding price stabilization to facilitate public offerings, have transferred from the Capital Market and Financial Institution Supervisory Board to the Financial Services Authority; b. that to provide clarity and certainty regarding the regulation of price stabilization to facilitate public offerings, provisions of legislation in the capital market sector regarding price stabilization to facilitate public offerings issued prior to the establishment of the Financial Services Authority need to be changed into a Financial Services Authority Regulation;
c. that based on considerations as referred to in letters a and b, it is necessary to establish the FINANCIAL SERVICES AUTHORITY REGULATION OF THE REPUBLIC OF INDONESIA on Price Stabilization to Facilitate Public Offerings;
Recalling:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
   DECIDING:
   Establish: FINANCIAL SERVICES AUTHORITY REGULATION ON PRICE STABILIZATION TO FACILITATE PUBLIC OFFERINGS.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Public Offering is the activity of offering securities conducted by an Issuer to sell securities to the public according to procedures regulated in Law Number 8 of 1995 concerning the Capital Market and its implementing regulations.
2. Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, units of participation in collective investment contracts, futures contracts over Securities, and every derivative of Securities.
3. Party is an individual, company, joint venture, association, or organized group.
4. Securities Underwriter is a Party that enters into a contract with the Issuer to conduct a Public Offering for the benefit of the Issuer with or without the obligation to purchase remaining unsold Securities.
5. Securities Broker-Dealer is a Party that conducts business activities of buying and selling Securities for its own behalf or for other Parties.
6. Stock Exchange is a Party that organizes and provides systems and/or facilities to match buy and sell offers of Securities of other Parties with the aim of trading Securities among them.

CHAPTER II
IMPLEMENTATION OF PRICE STABILIZATION
Article 2
(1) During the period of a Public Offering, a Securities Underwriter or a Securities Broker-Dealer playing a role in the Public Offering may offer to buy or buy Securities with the aim of maintaining the market price of the relevant Securities on the Stock Exchange. (2) In offering to buy or buying Securities as referred to in paragraph (1), the Securities Underwriter or Securities Broker-Dealer must fulfill the following conditions:
a. the stabilization price cannot differ from the official price of the Public Offering; b. stabilization must be conducted during the offering period and cannot be extended beyond that period;
c. the plan or intention to conduct stabilization must be disclosed in the prospectus;
d. the Securities Underwriter or Securities Broker-Dealer that sells or buys Securities that are currently in the stabilization period for the benefit of any Party must ensure that the Party has received or has had the opportunity to read a written statement that purchases in the context of stabilization will, are, or have been conducted; and e. the executing securities underwriter must first submit information to the Financial Services Authority, all securities selling agents, and investor public regarding when stabilization starts and the date and time when the stabilization period and Public Offering end.

CHAPTER III
SANCTION PROVISIONS
Article 3
(1) Any Party that violates the provisions as referred to in Article 2 paragraph (2) shall be subject to administrative sanctions.
(2) Sanctions as referred to in paragraph (1) shall also be imposed on Parties that cause the occurrence of violations as referred to in paragraph (1).
(3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority.
(4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.
(5) The procedure for imposing sanctions as referred to in paragraph (3) is carried out in accordance with applicable legislation.
(6) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (4) letter a. (7) Administrative sanctions in the form of a fine as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, or g.

Article 4
In addition to administrative sanctions as referred to in Article 3 paragraph (4), the Financial Services Authority may take specific actions against any Party that violates the provisions of this Financial Services Authority Regulation.

Article 5
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 3 paragraph (4) and specific actions as referred to in Article 4 to the public.

CHAPTER IV
CLOSING PROVISIONS
Article 6
Upon the commencement of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-88/PM/1996 concerning Price Stabilization to Facilitate Public Offerings, along with Regulation Number XI.B.1 which is its attachment, is repealed and declared invalid.

Article 7
This Financial Services Authority Regulation shall commence on the date of its promulgation.

This copy is consistent with the original
Director of Law 1
Law Department signed
Yuliana

In order for everyone to know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on February 8, 2019
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on February 11, 2019
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 28

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 6 /POJK.04/2019
ON
PRICE STABILIZATION TO FACILITATE PUBLIC OFFERINGS

I. GENERAL
That since December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the capital market sector, insurance, pension funds, financing institutions, and other financial service institutions have transferred from the Minister of Finance and the Capital Market and Financial Institution Supervisory Board to the Financial Services Authority. In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the capital market sector, by converting Capital Market and Financial Institution Supervisory Board Regulations related to the capital market sector into Financial Services Authority Regulations. This reorganization is carried out so that Financial Services Authority Regulations related to the capital market sector are aligned with Financial Services Authority Regulations in other sectors. Based on the background thinking and aspects mentioned, it is necessary to replace the provisions of legislation in the capital market sector regulating price stabilization to facilitate Public Offerings, namely the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-88/PM/1996 concerning Price Stabilization to Facilitate Public Offerings, along with Regulation Number XI.B.1 which is its attachment, into a Financial Services Authority Regulation on Price Stabilization to Facilitate Public Offerings.

II. ARTICLE BY ARTICLE
Article 1
Clearly sufficient.

Article 2
Paragraph (1)
In practice, offering to buy or buying Securities with the aim of maintaining the market price of the relevant Securities on the Stock Exchange is referred to as price stabilization actions.

Paragraph (2)
Clearly sufficient.

Article 3
Clearly sufficient.

Article 4
The term "specific actions" includes, among others, the postponement of the issuance of an effective statement for a Registration Statement in the context of a Public Offering.

Article 5
Clearly sufficient.

Article 6
Clearly sufficient.

Article 7
Clearly sufficient.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6313