JSX announces new listing regulations<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The Jakarta Stock Exchange (JSX) announced on Thursday changes in
\nits listing regulations, which provide tougher sanctions for
\ncompanies failing to submit their audited financial reports on
\ntime.<\/p>\n
JSX president Erry Firmansyah told a press conference that the
\nmaximum penalty for late submission of financial reports has been
\nincreased to Rp 500 million (US$55,500), compared to only Rp 10
\nmillion under the current regulation.<\/p>\n
While the new sanctions will be effective on Oct. 1, the
\nrevision to the other parts of the listing regulations will be
\neffective as of Monday. The full copy of the revised regulations
\nwill be issued to the press on Monday.<\/p>\n
The move came amid a growing number of listed companies
\nfailing to submit their audited financial reports on time, which
\nhas created new uncertainty for investors in the local stock
\nmarket.<\/p>\n
Erry explained that under the revised regulation, the bourse
\nwill first issue a warning letter to companies that fail to
\nsubmit their financial accounts by the deadline. There will be a
\nRp 1 million fine for each day the submission is delayed.<\/p>\n
A second warning letter plus a Rp 50 million penalty will
\nfollow after a 30-day delay, and a third warning letter plus a Rp
\n150 million penalty will be imposed for another 30-day delay.<\/p>\n
The exchange would then consider imposing the maximum fine of
\nRp 500 million if the company in question still has not submitted
\nthe financial report. This will be followed with suspension in
\nthe trading of the shares of the companies.<\/p>\n
"We sincerely hope that companies do not find themselves in
\nsuch a situation," Erry said.<\/p>\n
The JSX has previously threatened to delist or suspend 35
\nfirms including blue chip telecommunications company PT
\nTelekomunikasi Indonesia (Telkom), cement giant PT Semen Gresik,
\nand tire maker PT Gajah Tunggal for failing to submit their
\naudited 2003 financial reports by the deadline.<\/p>\n
The three companies, however, eventually managed to submit the
\nreports.<\/p>\n
However, until now four firms have not filed the reports, thus
\nfacing the risk of being delisting from the bourse. The companies
\nare PT Wahana Jaya Perkasa, PT Siwani Makmur, PT Bukaka Teknik
\nUtama and PT Texmaco Perkasa Engineering.<\/p>\n
Meanwhile, JSX listing director Harry Wiguna said that under
\nthe revised regulation, a particular company would be delisted if
\nits shares had been suspended for 24 consecutive months, or if
\nthe firm is considered to no longer have prospects as a going
\nconcern such as in the case of bankruptcy or closure.<\/p>\n
In the case of voluntary delisting, at least two-thirds of a
\nfirm's shareholders must agree on the action and the firm must
\nhave already been listed in the bourse for at least five years.<\/p>\n
Companies could re-enter the bourse (relisting) within six
\nmonths after being delisted, while the original regulation
\nrequired a five to 10 year interval, Harry said.<\/p>\n
Harry further said that the revision to the regulations also
\ncovered the area of determining share price in the case of share
\nbuy back.<\/p>\n
Zulfikar, a stock market analyst at Mandiri Sekuritas, said
\nthat the revision was a good step in a bid to help protect the
\ninterests of investors.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-announces-new-listing-regulations-1447893297",
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"sponsor": "Okusi Associates",
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