JSX to introduce 3rd trading board in April

JSX to introduce 3rd trading board in April

JAKARTA (JP): The Jakarta Stock Exchange (JSX) will introduce
three trading boards in April, and will split listed companies
into three groups based on assets and financial performance.

The three-board trading system will consist of the main board,
the development board and the special board, according to a draft
of the regulation on the new trading system.

To be eligible for the main board, companies must demonstrate
solid financial performance. Their shares should have a nominal
value of at least Rp 500, and the ownership of the investing
public should be at least 35 percent. The companies in this group
also must have been operating for at least three years.

Companies on the main board also require a total pretax income
of at least Rp 5 billion in the previous year, or Rp 7.5 billion
in cumulative pretax income for the past two years, according to
the draft.

"(The companies) will have no default on any of their
financial obligations and a positive operating cash flow," the
draft said.

The draft also said the companies listed on the main board
must have at least 60 percent of their total revenue coming from
their core business activities.

Companies in the financial sector must have a "sound" level of
performance, as assessed by an authorized government body.

To be traded on the second board, the development board, a
company must have a Rp 500 nominal value per share, have been
assessed as "moderately sound" (for financial institutions) and
have a minimum public ownership of 50 million shares, or 25
percent of paid-up capital, according to the draft.

The third board, the special board, is designated for
companies which have meet the conditions of either the main board
or the development board but do not comply with the minimum Rp
500 nominal value per share requirement.

All three boards require companies to have total assets of at
least Rp 100 billion.

For companies on all boards, at least 30 percent of their
boards of directors must come from independent parties not
related to shareholders, and there must be at least one
independent member on their boards of commissioners.

All members of the boards of directors and commissioners also
will be subject to a certain set of conditions to guarantee their
integrity.

Companies in the mining sector will be allowed to float their
shares only if the company has already begun commercial
production, according to the draft. (udi)