[Kabar-indonesia] Indonesia Mkt Watchdog Seeks Reporting Of Bond Trading

[Joyo at aol.com]

Indonesia Mkt Watchdog Seeks Reporting Of Bond
Trading

JAKARTA, July 3 (Dow Jones)--Indonesia's capital
markets watchdog, Bapepam, is proposing that all
secondary-market bond transactions be reported to the
regulatory authorities within one hour of the deal.

According to a draft proposal on Bapepam's Web site,
such reporting would include the price, timing,
volume, sellers and buyers of all over-the-counter
bond transactions.

The proposal doesn't explain the purpose of such
reporting, but analysts say it is aimed at boosting
the transparency and liquidity of the country's
fledgling bond market.

"A more transparent market will attract more retail
investors as well as foreign investors to invest in
the bond market," said a bond dealer with a large
local investment bank.

The authorities don't currently require that bond
transactions be reported, whether they be over the
counter or via the Surabaya Stock Exchange.

Most bond transactions are currently done over the
counter, making it difficult for investors to get
price guidance.

The proposal says Bapepam would impose penalties for
failing to report transactions, but doesn't provide
details.

Bapepam doesn't give a time frame for when the new
reporting requirements would take effect, and says on
the Web site that it welcomes feedback on the
proposal.

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Joyo Indonesia News Service
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