Stock exchange is a means of securities trading activity through which a company may gain additional capital by issuing shares or other types of securities for investors to buy or sell. Therefore, investors hold important role as a part that keeps the flow of market liquidity.in order to boost investor’s interest and confidence for investing in stock exchange, then an adequate legal protection for investors is needed.In order to strengthen and protect the Capital Market, the goverment has formed an independent institution called Otoritas Jasa Keuangan based on Undang – Undang No 21 Tahun 2011 Tentang Otoritas Jasa Keuangan which this institution is authorized to supervise the Indonesian Capital Market to make sure that the Indonesian Capital Market is running legally. This Thesis discusses about the Otoritas Jasa Keuangan’s duties, functions and authority in handling crimes in the capital market sector and the protection of the investors on Putusan No. 764/Pdt.G/2017/PN.Jkt.Sel based on Indonesian Capital Market and Otoritas Jasa Keuangan regulations.The legal protection of the investors is a very important aspect that can affect the country’s economy. By doing this research, the prospective investors will feel more or less secured with the protection that the investors get wheter in preventive or represive way to increase their trust on investing in the Indonesian Capital Market.