Monday, February 15, 2010

IDX studies to revoke stock lock-up regulation

Indonesia Stock Exchange (IDX) plans to revoke the lock up of new shares concerning with the rights issue without pre-emptive rights (HMETD).
The plan still waits for approval and discussion of some regulations including the listing regulation by the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK).
The regulation draft of stock listing is still discussed by Bapepam-LK and the approval depends on regulator.
Regulation of JSX No I-A Kep-305/BEJ/07-2004 on stock listing stipulates the rights issue without HMETD must not be tradable at the bourse within at least one year after the listing.
This aims to protect the non ultimate shareholders interst.
The regulation has so far not been revised yet into IDX regulation. The bourse has discussed six regulation revision which will seek approval from Bapepam-LK in a bid to harmonize the regulations following the merger of Jakarta and Surabaya Stock Exchanges in November 2008.
The lock up limitation has caused some market players regretted the regulation substance as it is potentially to cut the emitter stock liquidity at market.
The regulation will complete the revised Bapepam-LK regulation No.IX.D.4 on the capital rise without HMETD deliberated on December 9, 2009.

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