Companies must comply with regulations

Oct 13, 2025 by talynt.org 43 views

Legal Protection for Investors in Stock Trading After Listing in the Capital Market

Introduction

In the world of investment, legal protection for investors is a vital aspect, especially after a company lists its shares in the capital market. The importance of this protection cannot be overstated, as it plays a crucial role in maintaining investor confidence in market mechanisms and assisting them in making informed investment decisions. In this article, we will delve into the significance of legal protection for investors in stock trading after listing in the capital market, and explore the various measures that can be taken to ensure a safe and transparent investment climate.

The Importance of Legal Protection for Investors

The importance of legal protection for investors lies not only in the company's compliance with regulations, but also in developing healthy company management. In many cases, poor corporate governance can lead to abuse of power by company management and damage ethics and morals in management. Practices that are prohibited in stock trading in secondary markets, such as fraud, market manipulation, and internal trafficking, are regulated in Article 90 to Article 95 of the Capital Market Law. These regulations aim to prevent companies from engaging in unethical practices that can harm investors and damage the reputation of the capital market.

The Role of Bapepam-LK in Protecting Investor Interests

Supervision carried out by Bapepam-LK plays an important role in protecting the interests of investors. Bapepam-LK must carry out its function independently, free from political pressure or interests of other parties. This ensures that investors are protected from practices that are not in accordance with the law. When there is turmoil in the market, actions such as the suspension of trade on the Indonesia Stock Exchange become an important legal step to relieve investor panic and stabilize the market. Thus, investors can feel safer in investing in the capital market.

The Importance of Transparency and Good Governance

Transparency and good governance are essential components of legal protection for investors in stock trading after listing in the capital market. Companies that list shares have the responsibility to actively deliver material facts related to their business activities and shares. This information must be conveyed to Bapepam-LK and to the public within two working days after the incident. These steps aim to maintain investor confidence in market mechanisms and assist them in making informed investment decisions.

The Benefits of Legal Protection for Investors

The benefits of legal protection for investors in stock trading after listing in the capital market are numerous. Firstly, it helps to maintain investor confidence in market mechanisms, which is essential for the growth and development of the capital market. Secondly, it assists investors in making informed investment decisions, which can help to prevent losses and maximize returns. Finally, it promotes transparency and good governance, which are essential components of a healthy and stable capital market.

Conclusion

In conclusion, legal protection for investors in stock trading after listing in the capital market is a crucial aspect. Through transparency and good governance, investors can invest more confidently, which in turn will improve the overall health of the capital market. Therefore, it is essential for all parties involved, including the government, companies, and market regulators, to support each other in creating a safe and transparent investment climate.

Recommendations

Based on the analysis above, the following recommendations can be made:

Companies must comply with regulations: Companies that list shares must comply with regulations and deliver material facts related to their business activities and shares in a timely manner.
Bapepam-LK must carry out its function independently: Bapepam-LK must carry out its function independently, free from political pressure or interests of other parties.
Transparency and good governance must be promoted: Transparency and good governance must be promoted in the capital market to maintain investor confidence and assist investors in making informed investment decisions.
Investor education must be promoted: Investor education must be promoted to help investors understand the risks and benefits of investing in the capital market.

Future Research Directions

Future research directions in this area may include:

An empirical study on the impact of legal protection on investor confidence: An empirical study can be conducted to examine the impact of legal protection on investor confidence in the capital market.
A comparative study on the legal protection of investors in different countries: A comparative study can be conducted to examine the legal protection of investors in different countries and identify best practices.
A study on the role of Bapepam-LK in protecting investor interests: A study can be conducted to examine the role of Bapepam-LK in protecting investor interests and identify areas for improvement.

References

Law No. 8 of 1995 concerning the Capital Market
Article 90 to Article 95 of the Capital Market Law
Bapepam-LK (Capital Market Supervisory Agency and Financial Institutions)
Indonesia Stock Exchange

Appendices

Appendix A: List of Companies that have Listed Shares in the Capital Market
Appendix B: List of Bapepam-LK's Functions and Responsibilities
Appendix C: List of Investor Education Programs in the Capital Market
Frequently Asked Questions (FAQs) on Legal Protection for Investors in Stock Trading After Listing in the Capital Market

Introduction

In our previous article, we discussed the importance of legal protection for investors in stock trading after listing in the capital market. In this article, we will answer some frequently asked questions (FAQs) on this topic to provide further clarification and insights.

Q1: What is the purpose of legal protection for investors in stock trading after listing in the capital market?

A1: The purpose of legal protection for investors in stock trading after listing in the capital market is to maintain investor confidence in market mechanisms and assist them in making informed investment decisions. This is achieved through transparency and good governance, which are essential components of a healthy and stable capital market.

Q2: What are the key regulations that govern stock trading in the capital market?

A2: The key regulations that govern stock trading in the capital market include Law No. 8 of 1995 concerning the Capital Market, Article 90 to Article 95 of the Capital Market Law, and the rules and regulations of the Indonesia Stock Exchange.

Q3: What is the role of Bapepam-LK in protecting investor interests?

A3: Bapepam-LK plays an important role in protecting investor interests by carrying out its function independently, free from political pressure or interests of other parties. This ensures that investors are protected from practices that are not in accordance with the law.

Q4: What are the benefits of legal protection for investors in stock trading after listing in the capital market?

A4: The benefits of legal protection for investors in stock trading after listing in the capital market include maintaining investor confidence in market mechanisms, assisting investors in making informed investment decisions, and promoting transparency and good governance.

Q5: How can investors protect themselves from potential risks in the capital market?

A5: Investors can protect themselves from potential risks in the capital market by conducting thorough research, diversifying their portfolios, and seeking professional advice from financial advisors or investment consultants.

Q6: What is the significance of transparency and good governance in the capital market?

A6: Transparency and good governance are essential components of a healthy and stable capital market. They help to maintain investor confidence, prevent market manipulation, and promote fair and efficient market practices.

Q7: How can companies that list shares ensure compliance with regulations?

A7: Companies that list shares can ensure compliance with regulations by maintaining accurate and up-to-date records, disclosing material facts related to their business activities and shares in a timely manner, and cooperating with regulatory bodies such as Bapepam-LK.

Q8: What are the consequences of non-compliance with regulations in the capital market?

A8: The consequences of non-compliance with regulations in the capital market can include fines, penalties, and even suspension or revocation of trading privileges. In severe cases, non-compliance can also lead to legal action and reputational damage.

Q9: How can investors report suspected cases of market manipulation or other irregularities?

A9: Investors can report suspected cases of market manipulation or other irregularities to Bapepam-LK or other regulatory bodies, such as the Indonesia Stock Exchange.

Q10: What is the future outlook for the capital market in Indonesia?

A10: The future outlook for the capital market in Indonesia is promising, with the government and regulatory bodies working to improve transparency and good governance, and to promote investor confidence and market efficiency.

Conclusion

In conclusion, legal protection for investors in stock trading after listing in the capital market is a crucial aspect of maintaining investor confidence and promoting a healthy and stable capital market. By understanding the key regulations, the role of Bapepam-LK, and the benefits of legal protection, investors can make informed investment decisions and protect themselves from potential risks in the capital market.

References

Law No. 8 of 1995 concerning the Capital Market
Article 90 to Article 95 of the Capital Market Law
Bapepam-LK (Capital Market Supervisory Agency and Financial Institutions)
Indonesia Stock Exchange

Appendices

Appendix A: List of Companies that have Listed Shares in the Capital Market
Appendix B: List of Bapepam-LK's Functions and Responsibilities
Appendix C: List of Investor Education Programs in the Capital Market