JSX starts two-board trading system on Monday

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)