Protection of Investors' Rights in Margin Transactions by The Company

Abstract

The purpose of this study is to analyze investor rights protection arrangements in the analysis of margin transaction financing and the implementation of investor rights protection arrangements in the analysis of margin transaction financing by Stock Exchange Companies when selling shares by force. The research method applied is sociological juridical. The approach is carried out through the conception of law as a real and functional social institution, which is obtained empirically through going directly to the field to obtain the required information. The results of this study indicate that the arrangement for protecting investors' rights in the analysis of margin transaction financing by a Stock Exchange Company when a share sale is made by force has actually been regulated in a letter of agreement, which is stated in Bapepam-LK Regulation Number V.D.6. The existence of these regulations has fulfilled the legal protection aspects of investors as regulated in the Civil Code, but has not fulfilled the investor legal protection aspects as regulated in the Capital Market Law and the Consumer Protection Law. The implementation of the protection of investors' rights in the analysis of margin transaction financing by Stock Exchange Companies when there is a forced sale of shares has been carried out through contracts, accompanied by the implementation of an internal control system and the implementation of haircuts by the IDX.