Juridical Analysis on Stock Ownership Transfer Mechanism in Scripless Stock Trading System in Stock Exchange

Abstract

The advanced scripless stock trading system in stock exchange relates to the principle of law property as it is stated in book II and principles of obligation law in book III of Civil Code. In the Civil Code, it is stated that the ownership can only be transferred if it is in accordance to the existing regulations. Levering principles, as it is regulated in Article 613 of Civil Code, is contradictive to the rules of levering from stocks regulated in Constitution Number 8 of 1995 concerning Capital Market. In fact, normative conflict occurs because after the regulation in Article 55 subsection (1) of Constitution Number 8 of 1995 concerning Capital Market is tested with the regulation in Article 613 of Civil Code, both are contradictive showing that transfer ownership for intangible movable property, including scripless stock in Civil Code, is done physically, cessie or endossemen, whereas the constitution of capital market is done by book entry settlement. The mechanism of transfer ownership on the scripless stock trading system in capital market is by transferring the beneficial ownership of stock which is noted by debiting and crediting in the stock account on custodian. The ownership transferred are beneficial ownership on stock, while registered ownership is just transferred after it is converted to scripless stock and trading on-line in stock exchange.