FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 46 /POJK.04/2016

CONCERNING

PROCEDURES FOR THE CREATION OF REGULATIONS BY STOCK EXCHANGES

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS BOARD 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 regarding the procedures for the creation of regulations by Stock Exchanges, have transferred from the Capital Market and Financial Institution Supervisory Board to the Financial Services Authority; b. that in order to provide clarity and certainty regarding the regulation of the procedures for the creation of Stock Exchange regulations, regulations regarding the procedures for the creation of regulations by Stock Exchanges issued prior to the establishment of the Financial Services Authority need to be changed into a Financial Services Authority Regulation;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Procedures for the Creation of Regulations by Stock Exchanges;

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

COPY

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:

Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PROCEDURES FOR THE CREATION OF REGULATIONS BY STOCK EXCHANGES.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Financial Services Authority Regulation, the following terms are defined as:

1. Stock Exchange is a Party that organizes and provides systems and/or facilities to bring together buy and sell offers of Securities of other Parties with the aim of trading Securities among them.

2. Board of Commissioners is the Stock Exchange organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.

3. Stock Exchange Member is a Securities Broker who has obtained a business license from the Financial Services Authority and has the right to use the Stock Exchange's systems and/or facilities in accordance with Stock Exchange regulations.

4. Clearing and Guaranteeing Institution is a Party that organizes clearing and guaranteeing services for the settlement of Stock Transactions.

5. Depository and Clearing Institution is a Party that organizes Central Custodian activities for Custodian Banks, Securities Companies, and other Parties.

CHAPTER II

CREATION OF STOCK EXCHANGE REGULATIONS

First Section

Requirements for Drafting Stock Exchange Regulations

Article 2

(1) Stock Exchange regulations or amendments to Stock Exchange regulations are made by taking into account opinions from Stock Exchange Members, Clearing and Guaranteeing Institutions, Depository and Clearing Institutions, and other interested Parties. (2) Stock Exchange regulations or amendments to Stock Exchange regulations as referred to in paragraph (1) must first obtain approval from the Board of Commissioners before being submitted to the Financial Services Authority for approval.

Article 3

(1) Applications for approval of Stock Exchange regulations or amendments to Stock Exchange regulations are submitted to the Financial Services Authority in quadruplicate (4 copies) using the format of the Application for Approval of Stock Exchange Regulations or Amendments to Stock Exchange Regulations as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents as follows:
a. the regulations for which approval is sought; b. approval from the Board of Commissioners;
c. opinions from Stock Exchange Members; and
d. opinions from parties interested in the aforementioned regulations.

(2) The application must explain the reasons for the application, which must at least cover the background of the regulation's drafting, the problems faced, and the solutions.

Second Section

Review of Applications for Approval of Stock Exchange Regulations or Amendments to Stock Exchange Regulations

Article 4

(1) In order to process the approval application as referred to in Article 3, the Financial Services Authority grants approval or rejection for the application to amend Stock Exchange regulations no later than 60 (sixty) days from the date the application is received in complete form by the Financial Services Authority. (2) Within the timeframe as referred to in paragraph (1), the Financial Services Authority may request changes to the material of the Stock Exchange regulation amendments and/or request additional information related to the aforementioned regulations. (3) In the event that amendments and/or additional information as referred to in paragraph (2) have been submitted to the Financial Services Authority, the application to amend Stock Exchange regulations is calculated from the date the amendments or additional information are received by the Financial Services Authority.

CHAPTER III

INTERPRETATION OF STOCK EXCHANGE REGULATIONS AND INTERNAL STOCK EXCHANGE PROVISIONS

Article 5

Interpretations of Stock Exchange regulations to clarify their meaning but not to change or add to the aforementioned meaning, and provisions regarding the implementation of internal Stock Exchange activities concerning Stock Exchange human resources, the use of identification marks, and standard operating procedures for Stock Exchange activities, apply at the time they are submitted to the Financial Services Authority.

Article 6

Notifications by the Stock Exchange to the Financial Services Authority regarding interpretations of Stock Exchange regulations and provisions regarding the implementation of internal Stock Exchange activities as referred to in Article 5 are submitted using the format of Notification of Interpretation of Stock Exchange Regulations or Internal Stock Exchange Regulations as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by explanations and the background of their drafting.

Article 7

The Financial Services Authority may cancel interpretations and provisions regarding internal Stock Exchange activities as referred to in Article 6, within a period of 30 (thirty) days from the implementation of the aforementioned regulations.

CHAPTER IV

SANCTION PROVISIONS

Article 8

(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties that cause the violation to occur, in the form 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 g. cancellation of registration.

(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a.

(3) Administrative sanctions in the form of fines as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 9

In addition to administrative sanctions as referred to in Article 8 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 10

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 8 paragraph (1) and specific actions as referred to in Article 9 to the public.

CHAPTER V

CLOSING PROVISIONS

Article 11

Upon the implementation of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Board Number Kep-03/PM/1996 dated January 17, 1996 concerning Procedures for the Creation of Regulations by Stock Exchanges, along with Regulation Number III.A.2 which is its appendix, is repealed and declared invalid.

Article 12

This Financial Services Authority Regulation comes into force on the date of its promulgation.

In order that everyone knows 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 December 2, 2016

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,

signed

MULIAMAN D. HADAD

Promulgated in Jakarta on December 7, 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 275

Copy matches the original
Director of Law 1
Department of Law

signed

Yuliana

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 46 /POJK.04/2016

CONCERNING

PROCEDURES FOR THE CREATION OF REGULATIONS BY STOCK EXCHANGES

I. GENERAL

That since December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the Capital Market, Insurance, Pension Fund, Financing Institutions, and Other Financial Service Institutions sectors 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 Supervisory Board regulations related to the Capital Market sector into Financial Services Authority Regulations. This reorganization is carried out so that there are Financial Services Authority Regulations related to the Capital Market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned, it is necessary to replace the legislation in the Capital Market sector regulating Procedures for the Creation of Regulations by Stock Exchanges, namely the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-03/PM/1996 dated January 17, 1996 concerning Procedures for the Creation of Regulations by Stock Exchanges along with Regulation Number III.A.2 which is its appendix, into a Financial Services Authority Regulation concerning Procedures for the Creation of Regulations by Stock Exchanges.

II. ARTICLE BY ARTICLE

Article 1

Sufficiently clear.

Article 2

Sufficiently clear.

Article 3

Sufficiently clear.

Article 4

Sufficiently clear.

Article 5

Sufficiently clear.

Article 6

Sufficiently clear.

Article 7

Sufficiently clear.

Article 8

Sufficiently clear.

Article 9

Sufficiently clear.

Article 10

Sufficiently clear.

Article 11

Sufficiently clear.

Article 6 ...

Article 12

Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5971

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 46 /POJK.04/2016
CONCERNING
PROCEDURES FOR THE CREATION OF REGULATIONS BY STOCK EXCHANGES

APPLICATION FOR APPROVAL OF STOCK EXCHANGE REGULATIONS OR AMENDMENTS TO STOCK EXCHANGE REGULATIONS

Number: ...............,..............20....
Attachment:
Subject: Application for Approval of Stock Exchange Regulations or Amendments to Stock Exchange Regulations

To:

THE HEAD OF THE CAPITAL MARKET SUPERVISORY EXECUTIVE in -

Hereby we submit an application for approval of regulations or amendments to Stock Exchange regulations ............... as follows:

1. ......................................................................
2. ......................................................................
3. ......................................................................

As consideration materials, attached herewith are explanations and documents as follows:

1. ......................................................................
2. ......................................................................
3. ......................................................................

This application is submitted, and we thank you for your attention.

PT. Stock Exchange .................,
(full name)
President Director/Board Member

NOTIFICATION OF INTERPRETATION OF STOCK EXCHANGE REGULATIONS OR INTERNAL STOCK EXCHANGE REGULATIONS

Number: ...............,............20....
Attachment:
Subject: Notification of Interpretation of Stock Exchange Regulations or Internal Stock Exchange Regulations.

To:

THE HEAD OF THE CAPITAL MARKET SUPERVISORY EXECUTIVE in -

Hereby it is notified that the Board of Directors of Stock Exchange ............. has established interpretations of regulations/internal regulations as follows:

1. ......................................................................
2. ......................................................................
3. ......................................................................

As additional information, attached herewith are explanations regarding the background of the interpretation of the aforementioned regulations/internal regulations, as follows:

1. ......................................................................
2. ......................................................................
3. ......................................................................

Thus, we thank you for your attention.

PT Stock Exchange.............
(full name)
President Director/Board Member

Established in Jakarta on December 2, 2016

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,

signed

MULIAMAN D. HADAD

Copy matches the original
Director of Law 1
Department of Law

signed

Yuliana