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)