Get Ready! OJK Will Change Buyback Share Delisting Rules In 2023

Share illustration (Photo: Doc. Antara)

JAKARTA - The Chief Executive of the Capital Market Supervisory of the Financial Services Authority (OJK) Inarno Djajadi is targeting a revision of regulations regarding the buyback of company shares that will be delisted to be issued in 2023.

He said that currently the regulation is still in the revised stage. "Again, OJK's revision regarding the share buyback is delisting. Now it is still in the process of being revised, it is hoped that this year the POJK has been issued," said Inarno quoting antara.

Previously, the OJK required public companies that would delete the listing of shares or delisting on the Indonesia Stock Exchange (IDX) to buy back shares of the share buyback.

This provision is contained in the Financial Services Authority Regulation (POJK) Number 3/POJK.04/2021 concerning the implementation of activities in the capital market sector.

Meanwhile, referring to the OJK Regulation Draft (RPOJK) which was issued on January 24, 2023, OJK saw a number of obstacles to buyback prices, buyback share transfer prices, information disclosure, and the transfer period.

Several revision proposals include Article 8, which is for current regulations, the implementation of the buyback must be completed no later than 18 months after the approval date of the General Meeting of Shareholders (GMS).

Meanwhile, the implementation of the RPOJK must be completed no later than 12 months after the date of the GMS.

In addition, there are a number of rules that have been revised in the section of the transfer of shares resulting from buyback, including the diversion method, which article 19 RPOJK contains seven ways to transfer shares resulting from buyback.

Meanwhile, the current regulation on how to transfer shares from buybacks is contained in Article 17, and only five ways are regulated in the regulation.

Furthermore, in the RPOJK, repurchase shares can be diverted by means of payment or settlement of a certain transaction.

In addition, it can also be transferred by means of distribution to shareholders proportionally.

On this occasion, his party also explained various efforts to encourage the country's capital market industry in 2023.

His party will coordinate with several ministries and institutions (K/L) as a follow-up to the ratification of Law no. 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK).

"Especially in the capital market sector to support the effectiveness of development, regulation and supervision," said Inarno.