Two bourses to link merger deal soon
Two bourses to link merger deal soon
JAKARTA (JP): PT Bursa Parallel Indonesia (BPI) and the Surabaya Stock Exchange (SSE) are expected to sign their merger agreement in June, says BPI's president Tito Sulistio.
Tito said that shareholders in the companies operating the two exchanges and the capital market authority have agreed in principal on the merger plan.
"No technical problems are impeding the merger deal and we hope the deal will be signed on June 16," he said.
BPI was established in late 1990 by the association of money and securities traders as the first over-the-counter market in the country, while the SSE was formed in 1989 as the first privately owned stock market in the country and the only stock market located outside Jakarta.
However, trading activity on the two exchanges remains inactive as both investors and share issuers still prefer dealing with the Jakarta Stock Exchange (JSX).
Tito said the merger plan will not merely unify the two exchanges but redesign the country's capital market operations.
Unlike the JSX, the merged stock exchange will target small- and-medium scale companies, he said, adding the merged market will also act as a bridge for small-scale companies wanting to list on the JSX.
"The merged bourse will not compete but complement the trading activities of the JSX," he said following the announcement of BPI's odd lot trading plan.
Tito said that odd lot trading, which will formally be introduced on May 22, will include the trading of old lot shares listed on the JSX.
Trading on the JSX is carried out per lot of 500 shares, while those of less than 500 units are conducted at the odd lot trading board.
However, small-scale investors with less than 500 stocks often face difficulties in selling their stocks as the orders are mostly made in lots.
"BPI will in principal facilitate small investors selling their stocks," he said of the exchange's planned odd lot trading board.
Tito said that transactions of odd lot shares at BPI will also be linked to the computer system of the Stock Clearing and Settlement Agency, which will handle both the clearing and delivery of shares. (hen)