Indonesia has fined one company and three individuals a total of 11.05 billion rupiah ($655,000) for alleged stock market manipulation between 2016 to 2022, its chief stock market supervisor said on Friday.
Index provider MSCI (MSCI.N), opens new tab in January flagged transparency issues on the Indonesian stock exchange, triggering a market rout. Jakarta was forced to tighten supervision over its capital markets and announced sweeping reform proposals aimed at restoring the confidence of foreign investors.
The MSCI warning, however, has brought to light what brokers in Indonesia have dubbed “goreng-goreng saham”, or “stock frying”, aimed at pumping up share prices.
Hasan Fawzi, interim chief capital market supervisor at the Financial Services Authority (OJK), told a press conference that the regulator has fined a company and two individuals for allegedly controlling multiple stock investor accounts in order to pump up share prices in a listed firm.
Another person, a social media personality identified only by their initial BVN, was fined for influencing followers into buying certain stocks, as well as using multiple accounts to conduct transactions.
Earlier this month, OJK penalised several companies for inappropriate conduct, including freezing the underwriting permit of UOB Kay Hian Sekuritas for a year for improper due diligence over clients ahead of a 2019 initial public offering.
Source: Reuters