Sub Account Administration

Referring to Bapepam Regulation No. III.C.7 regarding Sub Account at Depository and Settlement Institutions issued on January 15th 2003, PT Kustodian Sentral Efek Indonesia (KSEI) as a Depository and Settlement Institution has made available Sub Account facilities for the safekeeping of Securities and/or funds of Investors / Customers of KSEI Account Holders which are Securities Companies and Custodian Banks.

PURPOSE & BENEFITS

The Sub Account helps the Account Holder in the conduct of administering its Investor’s / Customer’s Securities safe-kept in KSEI primarily referring to the separate recording of Investor’s / Customer’s assets in compliance with prevailing regulations of the Capital Market. The Sub Account will also ensure the openness of the KSEI Account Holder’s bookkeeping system that will secure the Investors’ interests upon the investment policy carried out by the Account Holder. For the opening of a Securities Account, there is no such provision whereas the Sub Account must be an active one in the conduct of transactions; in addition, Sub Accounts can be used as a supervisory instrument by Investors / Customers to assure that the Securities under their custodian’s management is not utilized for the benefit of that custodian itself.

The main benefit for the Account Holder lays in the efficiency obtained in times when Corporate Action occurs, for example: Dividend distribution, for the purpose of which the Account Holder no longer needs to deliver a list of Investors to KSEI. Investors data will automatically be at hand in KSEI through Sub Account data upon Recording Date. On  the distribution date of the intended dividend payment, KSEI will immediately  conduct  the distribution of dividend to the Sub Accounts of those Investors entitled to it.

Confidentiality

KSEI will always hold confidential data and information contained in a Sub Account recorded in C-BEST. Only authorized personnel are granted access to C-BEST. In the effort to secure such information, KSEI employees are bound by agreement to hold confidential such data and information. KSEI will take all necessary steps to secure the confidentiality of all its services’ consumers in high standard to meet provisions regarding such an obligation in accordance with prevailing laws.

In such a case whereas a third party requests information regarding a KSEI registered Securities Account or Securities Sub Account, in compliance with provisions under Article 47 of Law Number 8 Year 1995 regarding Capital Market, the intended requester must beforehand obtain approval for such a purpose from Bapepam.

FEES

KSEI does not change any fee in what so ever form for the opening of a Sub Account. The mutation of funds between Sub Accounts, or even the mutation occurring from a Sub Account to the Depository Account (001) owned by the Account Holder, or vise versa, will also not be changed for.

SUB ACCOUNT ADMINISTRATION

Divide into:

  1. The Opening of a Securities Sub Account
  2. The Closing of a Securities Sub Account
  3. Changes In Securities Sub Account Data
  4. Securities Balance/Sub Account Freezing

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