JAKARTA. Indonesia Stock Exchange (IDX) stated that the institution is unlikely to revoke the suspension over Magnus Capital’s operating permit. IDX suspended Magnus’ operating pertmit on 13 May 2016 due to IDX’s doubts over the accuracy and sufficiency of Magnus’ adjusted net working capital. IDX also questioned the risk management and internal control of this securities company.

This related to the the case of the investment fraudulent, which was allegedly involving ex-employee of PT Reliance Securities Tvk (RELI) Larasati. She alleged to be the mastermind of the fake investment case of series FR0035 bonds in 2014.

Larasati sold the bonds to several clients, and asked to the clients to transfer the funds to Magnus’ bank account. However, these transactions were not recorded in the books. Later, the investors could not withdraw their investment funds.

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Deserves sanctions

In accordance with IDX Regulation No III-G on the Suspension and the Revocal of Stock Exchange Membership, Magnus’ deserves sanctions. The regulation stipulates that the IDX can revoke the membership if the member was suspended during consecutive 90 days or three months, while IDX has suspended Magnus’ membership since 12 May 2016 or seven months ago.

However, Tito said that Magnus is eligible to sell their membership to a company, which has secured a six-month license.

Previously, IDX found that Magnus has insufficient adjusted net working capital. Let alone, IDX and Magnus have different calculation methods.

If Magnus cannot settle their problems in a six-month period, IDX will auction Magnus’ membership. The auction will be taking place in six times. If the auctions are not succeeded, IDX is eligible to acquire the membership with the price of Rp 135 million.

As of Tuesday (3/1), Magnus Capital has not made confirmation related to this matter. Associated Director of Magnus Capital Agus Priyambodo told KONTAN that he was on leave and out of town.

As of September 2016, Magnus revenues dropped by 53% on year on year (yoy) basis to Rp 1.2 billion, while the net loss hiked by 169% (yoy) to Rp 2.6 billion. (Muhammad Farid/Translator)