Capital Market Sector Research Articles

Sector Analysis of Islamic Capital Markets and Artificial Intelligence Functioning as Sharia Advisors

Artificial intelligence technologies will have a significant impact on a variety of career areas, including jobs in finance and law. The fact is that the Islamic capital market sector tends to use AI technology. There are now proposals to replace the role of sharia advisors with AI technology. The research conducted is legal research using qualitative methods. The legal historiographical approach was chosen to show the responsibility of the sharia board in realizing the concept of Islamic urbanism. The idea of Islamic urbanism is closely related to AI technology and the capital market as the main places for both of them to work in cities. This research has three objectives. It analyzes the role and function of artificial intelligence technology, Islamic capital markets, and the part of Sharia Advisors in the industry. Then the problem of using AI technology in the Islamic capital market is identified. Moreover, it offers a solution to using the proposed innovative technology. This paper argues that the ability of technology to replace the role of Islamic advisors in the Islamic capital market sector is limited. This is because AI technology, although advanced, can only deal with the physical world of cities but still needs to embody the concept of Islamic urbanism. At the same time cannot replace the role of sharia advisors.

ISLAMIC CAPITAL MARKET-GROWTH NEXUS PRE AND POST IFSA 2013: EMPIRICAL EVIDENCE FROM MALAYSIA

This study examines the relationship between Islamic capital market and Malaysian real economic growth pre and post IFSA 2013 from 2007 to 2019. This study adopts both quantitative and qualitative analysis, where Autoregressive Distributed Lag (ARDL) method of cointegration is adopted for the quantitative analysis, while interview session is adopted for the qualitative analysis. The findings found that the link between Shari’ah-compliant Securities (SCS) and the real economic growth is negatively significant, while the link between Shari’ah-compliant Market Capitalization (SCMC) and the real economic growth is positively significant in both short and long runs. It is also shown that IFSA 2013 does assist the Islamic capital market sector to improve the real economic growth in Malaysia via its rules and regulations, as the coefficients and significance of the real economic growth as proxied by the industrial production index (IPI) are improving with the implementation of IFSA 2013. Besides, the qualitative results of the study have shown that Islamic capital market does promote economic growth by ensuring stability in the market and significantly contributing to the environmental, social and governance (ESG) via the implementation of SRI Sukuk, Bond Grant Scheme, ESG Financing/Sukuk, and value-based judgement projects. The work gives some insights into the field of Islamic capital market-growth nexus from the perspective of a developing country, which is Malaysia. It also delves further into the Islamic capital market-growth nexus by considering the effect of IFSA 2013.

Effects of Financial Market Intermediation on Economic Growth in Nigeria

As the competitiveness of the banking sector has a direct effect on the steady state growth rate, through a process of well-functioning educational system, it is expected that capital market sector responds positively to steady economic growth. This is a puzzle that this study identified and put into empirical test. Data on financial market intermediation (as measured by market capitalization, money supply, credit to the private sector, and total reserve) and economic growth (as measured by Real GDP) were obtained from a secondary sources, namely the Central Bank of Nigeria Statistical Bulletin (2017), National Bureau of Statistics (2017) and World Bank Development Index. The study therefore applied stationarity tests (Augmented Dickey Fuller and Phillip Perron) and structural vector autoregressive (SVAR) as analytical techniques in a bid to examine the effects of financial market intermediation on economic growth in Nigeria over a thirty-seven (37)-year period, from 1981 to 2017. Based on the evidence of statistical result, it was established that the estimated parameters attained stationarity at first difference, that is, I(1), the result further expressed that market capitalization has a positive and significant effect on economic growth (z=26.62778; p0.05); money supply has a positive and significant effect on economic growth (z=4.914683; p0.05); credit to the private sector has an inverse and significant effect on economic growth (z=2.707756; p0.05); and lastly, the result disclosed that total reserve has a negative and significant effect on economic growth in Nigeria (z=12.63565; p0.05). According to the study, financial market intermediation has a significant impact on economic growth in Nigeria and can be used to predict economic growth in the Nigerian economy as in other developing economies of the world. The policy implication in the study is that governments need to intensify effort to ensure appropriate policy mix for harmony and proper coordination of economic policies and greater attention directed to money supply that is, greater emphasis should be on the improvement of monetary policies, instruments and institutions in Nigeria to ensure effective and efficient monetary system. The study also implies that government need to strengthen capital market the more in order to remain competitive.

Urgensi KPEI Dalam Sistem Perdagangan Saham Tanpa Warkat Di Bursa Efek


 With the skyrocketing advances in technology, this also has an impact on the economic sector, including the capital market sector. Technological developments in the capital sector have made stock trading which was originally carried out manually with stock certificates, now turning more practical with the term scriptless trading or scriptless. And even in practice, this scripless sale and purchase of shares is supported by the LKP (Clearing Guarantee Institution) conducted by PT. KPEI (Indonesian Clearing and Underwriters). This implementation is in accordance with the provisions stipulated in Law No. 8 of 1995 in Article 55 paragraph 1. Where this law regulates the capital market as a manifestation of the mandate for the development of scripless stock trading.

Penyuluhan Hukum Pembuatan Akta oleh Notaris Berdasarkan Undang-Undang Nomor 2 Tahun 2014 Tentang Jabatan Notaris

Notary is a public official who has the authority to make authentic deeds and has other authorities as referred to in Law Number 2 of 2014 concerning Amendments to Law Number 30 of 2004 concerning the Position of Notary. Notary as a capital market supporting profession to be able to make authentic deeds, and carry out activities in the capital market sector must first be registered with the Financial Services Authority (OJK), meet the requirements, and fill out an application for registration of a notary as a capital market supporting profession in the attachment to the Financial Services Authority regulations (OJK) Number 67/POJK.04/2017 Concerning Notaries Conducting Activities in the Capital Market. According to Article 1868 of the Civil Code, an authentic deed is a deed which, in the form determined by law, is made by or before public officials who have the power to do so at the place where the deed was made. The Authority of a Notary in Providing Legal Counseling for Making Deeds Based on the Notary Office Act (UUJN), a notary must educate the public or the parties who will draw up a deed before a notary regarding the rights and obligations of each party.

Analisis Peranan Pemerintah Terhadap Praktik Greenwashing Dalam Strategi Investasi Keuangan Berkelanjutan Berbasis ESG

Sustainable Finance is one of the government's steps in preserving the Environment. A concrete form of sustainable finance is an ESG-based sustainable investment. Financial Service Institutions, Issuers, Banks, and Public Companies are required to implement Sustainable Finance in order to achieve a national economy that grows stably, inclusively, and sustainably and can prevent forms of investment in business activities that use excessive resources that have the potential to damage the Environment, these demands are based on POJK Number 51 /POJK.03/2017. However, the regulation still does not regulate specific classifications and indicators for companies that do use nature as one of their business prospects, as a result of which Greenwashing practices often occur indirectly. Therefore, according to the author, OJK as an institution in charge of regulating and supervising financial services activities in the Banking sector, Capital Market sector, and IKNB sector, must make special arrangements related to Greenwashing practices so as to eliminate ambiguity in implementing Sustainable Finance in ESG-based Sustainability Investment strategies.

Conflict of Interest Transactions on Equity Crowdfunding Based Funding Activities in Indonesia

This research aims to understand the difference between transactions in equity crowdfunding and transactions in the capital market and to determine the urgency of managing the risk of conflict of interest in equity crowdfunding transactions. The method used in this research is normative legal research with a statute approach that is relevant to the object of research and an analytical approach. The resulst of the research conducted a conclusion that in fact equity crowdfunding is part of the capital market, but there are differences in substance that cause both of them to face different mechanisms and risks of implementing financing activities. POJK No. 57/POJK.04/2020 has not fully accommodated the legal needs related to the risk of conflict of interest in the equity crowdfunding sector as Law Number 8 of 1995 regarding the Capital Market has regulated the conflict of interest in the capital market sector.

Legal Protection of Online Investors on the Binomo App by Alert Task Force Investment Financial Services Authority

Background: Broadly speaking, an investment is a commitment to a certain amount of funds or other resources such as equipment, immovable assets, intellectual property rights, or expertise. Investments are made personally as well as by legal entities. Investment in general, has several objectives, the first, is to get a more decent life in the future, the second is to reduce inflationary pressures, and the third is to save taxes.
 
 Objective: This study aims to find out as well as analyze the legal protection of online Investors on the Bonomo application by the investment alert task force of the financial services authority. As well as knowing and analyzing about.
 
 Methods: This research belongs to the normative type of research. So it can be known that the legal protection of investors by brokerage companies has not been sufficiently able to accommodate the interests of investors.
 
 Result: In Law Number 21 of 2011 concerning the Financial Services Authority (OJK Law), the authority and duty of the OJK are to supervise Financial Services Institutions (LJK) in the capital market sector, the non-bank financial industry sector (such as insurance, pension funds, financing companies, etc.) and starting in 2014 will also supervise the banking sector (Commercial Banks and People's Credit Banks).
 
 Conclusion: Based on the above explanation, it can be concluded that the legal protection of investors by brokerage companies has not sufficiently accommodated the interests of investors.

EXPLORING THE REGULATORY FRAMEWORK OF SUSTAINABLE FINANCE IN MALAYSIA: DRIVING FORCE FOR ESG INSTITUTIONAL INVESTORS

Since the introduction of the United Nation Millennium Development Goals (2000) and Sustainable Development Goals (2015), sustainable finance had grown exponentially via the strong support of regulators introducing a framework to support the financing of sustainable development. Malaysian regulatory bodies played an active role in pushing the sustainable agenda via its capital market, banking, and takaful sectors. The introduction of the regulatory framework for sustainable finance aims to serve as a guide for the industry players to take part in sustainable investment in these sectors. Institutional investors as the largest asset owners and financial sector players are key to reshaping the Environment, Social and Governance (ESG) development. By employing qualitative library research method, an analysis is made specifically from documents, speeches, newspaper releases, peer-reviewed journals, and texts related to sustainable finance in Malaysia. This paper provides an oversight of the historical development and Malaysian experience in developing their sustainable finance regulatory framework in the capital market, banking and takaful sectors. This paper is of the view that the development of the sustainable framework plays a significant role that acts as a driving force for the ESG institutional investors in Malaysia.

Peran Penting Statistika dalam Pendidikan dan Perekonomian Islam Modern

This research is a literature study with a descriptive qualitative approach to the type of literature that seeks to explain the important role of statistics in modern Islamic education and economics. In this literature study, researchers used various written sources such as books, articles, journals and other supporting documents relevant to the study. This study focuses on the discourse of statistical science and its role in the field of Islamic education and economics in the modern era. The results of the study show that statistics have been widely used by the public on various field such as politics, education, government, economics, and business. In education, statistics help students and learners or education practitioners in understanding data, measurement instruments, data analysis techniques, and drawing conclusions, both as evaluations and continuing education research. While in business, statistics can be applied to business calculations in the form of trend index numbers, dividend calculations, probability of profit in investments and stocks. Specifically, statistics have an important role in the banking sector, stock sector, capital market sector, insurance sector, multifinance and micro sector. Statistics present a lot of detailed and systematic information or data. Not only that, statistical science is highly recommended in Islamic economic and educational activities, and Allah likes people who carry out economic andeducational activities carried out with itqan, namely focused, clear, accurate, and compleKeywords: statistics, education, and modern islamic economy

PRINSIP KETERBUKAAN INFORMASI (FULL DISCLOSURE) DALAM PROSES IPO PADA MASA PANDEMI COVID-19

The background of this research issue is based on the importance of information disclosure to companies that conduct public offerings in the capital market as a determinant for investors to make decisions because the Covid-19 pandemic is one of the extraordinary events that greatly affect several sectors, one of which is in the capital market. This thesis aims to review the fulfillment of the principle of information disclosure in the IPO (Initial Public Offering) process during the Covid-19 pandemic. This research is library research, examines the momentum that is happening at this time and relates the prevailing laws and regulations to support research. The analysis method used is normative juridical by using statute approach, as well as conceptual approach. In this study using three main legal materials used, namely, the primary legal material consists of Law No. 8 of 1995 on Capital Market, Law No. 8 of 1995 on Capital Market, Law No. 21 of 2011 on Financial Services Authority, and Bapepam Regulation Number IX.A.2 on Registration Procedures in the Framework of Public Offerings. The results showed that OJK issued several regulations for the capital market sector due to the Covid-19 pandemic that had an impact on companies and investors, but OJK has not issued specific regulations for the application of information disclosure principles in the IPO process during the pandemic so that there are still existing regulations related.

ANALISIS HERDING BEHAVIOR PADA SEKTOR SEKTOR YANG TERDAFTAR DI BURSA EFEK INDONESIA DAN BURSA SAHAM MALAYSIA TAHUN 2015 2021

The growth of investors in the Indonesian capital market has grown significantly over the past five years. However, this was followed by a fairly slow growth in financial literacy, especially in the capital market sector. The existence of inequality in the growth of these two things can lead to irrational investors because investors who have good literacy will make better investment decisions by doing analysis. One of the irrational behavior as a result of this inequality is herding behavior. In addition, the COVID-19 pandemic which caused panic among investors in the capital market also encouraged herding behavior. This study aims to analyze and detect herding behavior on the Indonesia Stock Exchange and the Malaysia Stock Exchange by dividing it into three different periods, namely before the pandemic, during the pandemic, and after the COVID-19 pandemic. The method used to detect herding behavior in this study is Cross. Sectional Absolute Deviation (CSAD) introduced by Chang et al. (2000) using the rolling regression method. The results showed that the intensity level of herding behavior was very high during the COVID-19 pandemic or in 2020 on the Indonesia Stock Exchange and the Malaysian Stock Exchange. In addition, for the entire study period, the intensity level of herding behavior on the Malaysian Stock Exchange is higher than the Indonesian Stock Exchange.

The Role of Indonesian Notary in the Transfer of Stock Through the Waqf Mechanism After the Covid-19 Pandemic

Since the Covid-19 cases appeared in several countries including Indonesia, it had a direct impact on every sector in Indonesia, especially in the capital market sector. However, because Indonesia is currently entering a new phase in economic recovery after the acceleration of vaccination, accompanied by positive policies from the government, this provides new hope for investors who wish to waqf stocks. This study discusses the role of the Notary as the Official Making the Waqf Pledge Deed in the Transfer of Stock Waqf after the Covid-19 Pandemic. The new role of the Notary as stated in the explanation of Article 15 of Law Number 2 of 2014 concerning amendments to Law Number 30 of 2004 concerning the Position of a Notary (UUJN), especially in the explanation of Article 15 paragraph (3) that Notary have other authorities regulated in laws and regulations, one of which is to make a Deed of Waqf Pledge. This is related to the provisions of Article 37 paragraph (4) of Government Regulation Number 42 of 2006 concerning the Implementation of the Waqf Law (PP Wakaf), which states that a Notary has the opportunity to make a Waqf Pledge Deed. As the most important element in the transfer of stock waqf, the Waqf Pledge Deed requires an official who has competence in making a deed containing the Wakif’s desire to surrender his assets to be used by Nazhir. This study aims to clarify the authority of a notary who is still foreign in making a waqf pledge deed, especially the object of stock waqf. This type of research is normative-juridical research. The results of this study obtained answers to existing problems related to the authority of a Notary as a PPAIW, namely that until now the regulations regarding the requirements of a Notary as a PPAIW that have been mandated in the provisions of Article 3 paragraph (5) of PP Wakaf have not yet been stipulated by the Minister of Religion.
 Keywords: notary, waqf, stock, Indonesia, Covid-19

Rules Regarding Mandatory Equity Securities Listing: Is It Possible for A Public Company Without Listing on The Indonesian Stock Exchange?

ABSTRACTThe Financial Services Authority has issued the latest regulation in the Capital Market sector, namely the Financial Services Authority Regulation Number 3/POJK.04/2021 concerning the Implementation of Activities in the Capital Market Sector. This paper aims to conduct a more specific analysis regarding the mandatory elements for a company that will conduct a public offering to list its equity securities on the stock exchange. The initiation of the obligation to conduct equity securities listing is carried out in order to reduce the intensity of backdoor listing or efficient efforts towards Initial Public Offering activities by acquiring a company whose shares have been listed on the Stock Exchange. This article was compiled using a normative legal research method. Based on Financial Services Authority Regulation Number 3/POJK.04/2021, the Financial Services Authority through the Depository and Settlement Institution conducts electronic securities listing which is not part of the securities collective custody. The Depository and Settlement Institution checks the conformity of the Securities records in the Depository and Settlement Institution with the records in the Securities Administration Bureau or the Public Company which conducts its own Securities administration. The mandatory to be listed for the equity securities of a public company closes legal loopholes for companies that wish to become public company using a procedure that is not in accordance with the provisions of the prevailing laws and regulations.Keywords: registered; capital market; public company; securities

Analisis Hasil Investasi Dana Asuransi Jiwa Syariah di Indonesia Periode 2014-2021

This paper aims to analysis the management of Islamic Life Insurance funds in Indonesia. From the OJK report, it was found that the investment returns of Sharia Life Insurance funds often experience losses, even though when viewed from the assets and investment value they have the highest interest compared to Sharia General Insurance and Sharia Reinsurance. The data in this study were obtained from OJK and the financial statements of Indonesian Sharia Insurance companies. This research uses quantitative method. The results of the study indicate that the main factor causing investment losses in Sharia Life Insurance funds is the placement of funds, which is dominated by the Capital Market sector, which accounts for 80% of the total investment. Total investment losses during the period 2014-2021 amounted to Rp.-42,713 billion. Total profit is Rp. 61,656 billion. So the total return on investment during this period is Rp. 18,943 billion of the total investment of Rp. 2.485 trillion or only 1%. The solution is that Sharia Life Insurance companies need to look for alternative financing sectors other than the Capital Market.

Is there a Short-term Overreaction to Pandemic Covid-19? A Case Study of the Indonesia Islamic Capital Market

COVID-19 is an event that has harmed various sectors, one of which is the capital market sector. The high uncertainty caused by the COVID-19 outbreak caused investors to react to this event, which could cause an overreaction phenomenon. The events taken in this study sample are two events related to COVID-19. This study aims to analyze the phenomenon of overreaction in Islamic stocks and the factors that influence the phenomenon of overreaction by using the two-sample difference test method and cross-sectional regression. The results showed that in the lockdown event (Event 2) was proven that there was a significant overreaction phenomenon in the winner stock category. The factors that influence the overreaction phenomenon in this event are proven to be significantly and negatively influenced by leverage and market capitalization. In contrast, trading volume significantly and positively influenced the overreaction phenomenon.

Is there a short-term overreaction to pandemic COVID-19? A case study of the Indonesia Islamic Capital Market

COVID-19 is an event that has harmed various sectors, one of which is the capital market sector. The high uncertainty caused by the COVID-19 outbreak caused investors to react to this event, which could cause an overreaction phenomenon. The events taken in this study sample are two events related to COVID-19. This study aims to analyze the phenomenon of overreaction in Islamic stocks and the factors that influence the phenomenon of overreaction by using the two-sample difference test method and cross-sectional regression. The results showed that in the lockdown event (Event 2) was proven that there was a significant overreaction phenomenon in the winner stock category. The factors that influence the overreaction phenomenon in this event are proven to be significantly and negatively influenced by leverage and market capitalization. In contrast, trading volume significantly and positively influenced the overreaction phenomenon.

COVID-19 and policy responses: Early evidence in banks and FinTech stocks

The Australian government and Reserve Bank of Australia responded to challenges posed by the COVID-19 pandemic with a number of rapid interventions within a short period of time in early to mid-2020. We examine the impact of news relating to COVID-19, monetary policy interventions, containment measures, and the unwinding of restrictions on Australian bank and FinTech stock prices. The global pandemic was caused by factors outside the banking sector and capital markets, therefore, the policy responses from this unique crisis provides us with new knowledge. Bank and FinTech stock prices were more sensitive to the government's macroeconomic announcements and the unwinding of containment measures than to monetary policy interventions in this unique environment. The response of banks and FinTechs to COVID-19 related macroeconomic decisions is consistent with the response of bank stock prices in previous financial crises. This finding suggests a stronger emphasis on macroeconomic announcements is required as a stabilizing policy tool when managing future crises from outside the banking and capital market sectors.

Penerapan Disgorgement Fund Sebagai Upaya Memberikan Perlindungan Bagi Investor Di Pasar Modal Indonesia

This journal discusses the implementation of the Disgorgement Fund as an effort to provide protection for investors in the Indonesian capital market as outlined in POJK No. 65/POJK.04/2020 concerning Return of Illegal Profits and Investor Loss Compensation Fund in the Capital Market Sector. The issues raised are how to implement the Disgorgement Fund itself in Indonesia and analyze the advantages and disadvantages of implementing the Disgorgement Fund in Indonesia in an effort to provide protection to investors in Indonesia. In its implementation, the Disgorgement Fund can calm investors while minimizing the crime rate in the Indonesian capital market so that the integrity of the capital market can be maintained, even though there are weaknesses such as parties subject to illegal return of profits that can harm investors and the difficulty of proving crimes in the capital market. But with the disgorgement fund system, that is effective, proportional, and preventive so that it can make a party choose not to commit a violation. Returning illegal profits as a remedial action is expected to prevent parties who commit violations from enjoying the profits they have obtained illegally, compensate for losses from victims of violations, contain corrective elements, and are expected to provide a deterrent effect.

Penerapan Disgorgement Fund Sebagai Upaya Memberikan Perlindungan Bagi Investor Di Pasar Modal Indonesia

This journal discusses the implementation of the Disgorgement Fund as an effort to provide protection for investors in the Indonesian capital market as outlined in POJK No. 65/POJK.04/2020 concerning Return of Illegal Profits and Investor Loss Compensation Fund in the Capital Market Sector. The issues raised are how to implement the Disgorgement Fund itself in Indonesia and analyze the advantages and disadvantages of implementing the Disgorgement Fund in Indonesia in an effort to provide protection to investors in Indonesia. In its implementation, the Disgorgement Fund can calm investors while minimizing the crime rate in the Indonesian capital market so that the integrity of the capital market can be maintained, even though there are weaknesses such as parties subject to illegal return of profits that can harm investors and the difficulty of proving crimes in the capital market. But with the disgorgement fund system, that is effective, proportional, and preventive so that it can make a party choose not to commit a violation. Returning illegal profits as a remedial action is expected to prevent parties who commit violations from enjoying the profits they have obtained illegally, compensate for losses from victims of violations, contain corrective elements, and are expected to provide a deterrent effect.