JSX starts two-board trading system on Monday

JAKARTA (JP): The Jakarta Stock Exchange (JSX) will use a two- board trading system -- a main board and a development board -- starting on Monday (today).

The JSX said last week that the main board would be used to trade large-scale companies that have good track records, while the development board was for those which had not met the conditions required to be on the main board.

Start-up companies (also called new economy stocks), which include Internet and mining companies, will also be traded on the development board.

The JSX said that all listed companies would be traded on the main board unless they failed to meet a number of certain conditions, as follows:

First, the companies have been at loss for the past three consecutive years, or post a cumulative loss amounting to 50 percent of paid-up capital.

Second, they have not paid dividends for the past three consecutive years.

Third, having paid-up capital of less than Rp 3 billion.

Fourth, having shareholders of less than 100 individuals and/or institutions for the past three consecutive months.

Fifth, the company's shares have not been traded for the past six consecutive months.

Sixth, being declared bankrupt by the Commercial Court.

Seventh, having a disclaimer opinion from an independent auditor.

"Listed companies are expected to improve their commitments to transparency and disclosure of information with the two-board trading system," the president of JSX, Achmad Daniri, said.(udi)