New OJK Rules Make Securities Underwriters More Transparent and Responsible

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) is finalizing the draft OJK regulation (Rancangan Peraturan OJK– “ RPOJK ”) on Internal Control and Behavior of Securities Companies Conducting Business Activities as Securities Underwriters and Securities Brokers.

Chief Executive of Capital Market Supervision, Derivatives Finance, and Carbon Exchange (Pasar Modal, Keuangan Derivatif dan Bursa Karbon/PMDK) OJK, Inarno Djajadi, stated that this effort is being made to enhance transparency and accountability of issuers regarding the use of funds in the prospectus.

“OJK is also evaluating a more effective stock lock-up mechanism while enhancing the quality of issuers who offer shares through IPOs,” stated Inarno in a written statement received by Hukumonline.

In general, OJK will regulate in more detail the obligations and responsibilities of securities underwriters in the public offering process. This will enable securities underwriters and capital market supporting professionals to ensure the credibility of prospective issuers through improved due diligence.

“It is currently undergoing harmonization and is scheduled for publication and implementation in 2025,” he concluded.