Indonesia slow settling into scripless

Conversion from scrip to scripless trading means a more sophisticated system - and lower tolerance for error.

Three months since Indonesia has gone scripless, some uncertainties still linger over the dematerialization process. Top on investors' minds is how the big stick of alternative cash settlement will be imposed. Second, whether scrips can be traded during conversion.

Eddy Sugito, a director of the Indonesian Clearing and Guarantee Corporation KPEI, earlier this month cleared the air in a custody conference held in Hong Kong.

Under the new regime, scripless securities must be delivered within a T4 settlement cycle. Failing to do so means the delivering broker will have to pay the buyer in cash instead, at 125% of the highest value of the securities concerned.

For securities on the...

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