The Role of Notary in the Capital Market

Oct 13, 2025 by vinooalluri.com 90 views

Introduction

The capital market is a vital platform for public companies to raise funds through public offerings and securities trading. For companies seeking to "go public," they must prepare registration requirements documents and submit them to the Capital Market Supervisory Agency and Financial Institutions (Bapepam-LK). This process involves various stakeholders, including the notary appointed by the issuer. As a crucial component of the capital market ecosystem, notaries play a vital role in ensuring the validity and compliance of documents and transactions.

The Role of Notary in the Capital Market

Notaries are responsible for creating and authenticating documents related to the capital market. Their tasks and responsibilities are multifaceted, and they must ensure that the documents they create are accurate, valid, and compliant with applicable regulations. The notary's role is critical in maintaining investor confidence and ensuring the stability of the capital market.

Tasks and Responsibilities of Notary Before and After Listing

Before Listing

Before a company lists on the capital market, the notary's tasks and responsibilities include:

Making a Deed of Changes to the Company's Articles of Association: The notary must create a deed that reflects the changes made to the company's articles of association, ensuring that the document is accurate and compliant with applicable regulations.
Making Minutes of Shareholders' General Meeting (GMS) related to the Public Offering Plan: The notary must create minutes of the GMS that accurately reflect the discussions and decisions made by the shareholders regarding the public offering plan.
Make a Deed of Agreement related to Public Offering: The notary must create a deed of agreement that outlines the terms and conditions of the public offering, ensuring that the document is accurate and compliant with applicable regulations.

After Listing

After a company lists on the capital market, the notary's tasks and responsibilities include:

Relieve the company's legality process in carrying out activities in the capital market: The notary must ensure that the company's activities in the capital market are compliant with applicable regulations and laws.
Provide legal consultations related to capital market regulations: The notary must provide legal advice to the company on matters related to capital market regulations, ensuring that the company is aware of its obligations and responsibilities.
Ensure the completeness and validity of the documents needed by the company: The notary must ensure that the documents required by the company are accurate, valid, and compliant with applicable regulations.

Notary Responsibility and Protection

The notary's responsibility is limited to the deed they create. The notary guarantees that the content, purpose, and purpose of the deed are correct and do not violate the code of ethics, laws, and applicable regulations. The principle of openness is crucial in the implementation of due diligence by the notary in the capital market. Notaries must thoroughly examine company data before making a deed, ensuring that the deed is accurate, valid, and compliant with applicable regulations.

Notaries who have carried out their duties correctly and in accordance with the rules and code of ethics will receive legal protection. This is essential to ensure the independence and professionalism of the notary in carrying out their duties.

The Importance of Notary in the Capital Market

The role of the notary in the capital market is vital. The notary acts as the guarantor of the validity of documents and transactions in the capital market. This is essential to build investor confidence and maintain capital market stability.

Suggestion

It is essential for notaries to continue increasing their knowledge and skills in understanding the rules and dynamics of the capital market. This will enable notaries to carry out their duties more professionally and credibly. In addition, efforts must be made to increase transparency and accountability in the process of making deeds related to the capital market.

Conclusion

The duties and responsibilities of the notary in the capital market are crucial in ensuring the validity and compliance with applicable regulations. Notaries must carry out their duties professionally, honestly, and responsibly to support the realization of a healthy and sustainable capital market.

Recommendations for Future Research

In-depth analysis of the notary's role in the capital market: Future research should focus on the notary's role in the capital market, including their tasks, responsibilities, and challenges.
Case studies of notary practices in the capital market: Case studies of notary practices in the capital market can provide valuable insights into the notary's role and the challenges they face.
Development of a framework for notary best practices: A framework for notary best practices can help ensure that notaries carry out their duties professionally, honestly, and responsibly.

By conducting further research and analysis, we can better understand the notary's role in the capital market and develop strategies to improve their performance and ensure the stability of the capital market.

Introduction

As a crucial component of the capital market ecosystem, notaries play a vital role in ensuring the validity and compliance of documents and transactions. However, there are many questions and concerns about the notary's role in the capital market. In this article, we will address some of the most frequently asked questions (FAQs) about notary tasks and responsibilities in the capital market.

Q1: What is the role of a notary in the capital market?

A1: A notary plays a crucial role in the capital market by ensuring the validity and compliance of documents and transactions. They create and authenticate documents related to the capital market, such as deeds of changes to the company's articles of association, minutes of shareholders' general meetings, and deeds of agreement related to public offerings.

Q2: What are the tasks and responsibilities of a notary before and after listing?

A2: Before listing, a notary's tasks and responsibilities include making a deed of changes to the company's articles of association, making minutes of shareholders' general meetings related to the public offering plan, and making a deed of agreement related to public offerings. After listing, a notary's tasks and responsibilities include relieving the company's legality process in carrying out activities in the capital market, providing legal consultations related to capital market regulations, and ensuring the completeness and validity of the documents needed by the company.

Q3: What is the principle of openness in the implementation of due diligence by a notary in the capital market?

A3: The principle of openness is crucial in the implementation of due diligence by a notary in the capital market. Notaries must thoroughly examine company data before making a deed, ensuring that the deed is accurate, valid, and compliant with applicable regulations.

Q4: What is the legal protection for notaries who have carried out their duties correctly and in accordance with the rules and code of ethics?

A4: Notaries who have carried out their duties correctly and in accordance with the rules and code of ethics will receive legal protection. This is essential to ensure the independence and professionalism of the notary in carrying out their duties.

Q5: Why is it essential for notaries to continue increasing their knowledge and skills in understanding the rules and dynamics of the capital market?

A5: It is essential for notaries to continue increasing their knowledge and skills in understanding the rules and dynamics of the capital market because it will enable them to carry out their duties more professionally and credibly. In addition, efforts must be made to increase transparency and accountability in the process of making deeds related to the capital market.

Q6: What are the recommendations for future research on notary tasks and responsibilities in the capital market?

A6: The recommendations for future research on notary tasks and responsibilities in the capital market include:

In-depth analysis of the notary's role in the capital market
Case studies of notary practices in the capital market
Development of a framework for notary best practices

Conclusion

The notary's role in the capital market is crucial in ensuring the validity and compliance of documents and transactions. By understanding the notary's tasks and responsibilities, we can better appreciate the importance of their role in the capital market. We hope that this article has provided valuable insights into the notary's role in the capital market and has addressed some of the most frequently asked questions (FAQs) about notary tasks and responsibilities in the capital market.

Additional Resources

For more information on notary tasks and responsibilities in the capital market, please refer to the following resources: