IDX Realizes The Latest Mechanism For Transferring Recording Boards

IDX. (Doc Antara)

JAKARTA In order to organize regular, reasonable, and efficient securities trading and in line with market developments, PT Bursa Efek Indonesia (IDX) has made adjustments related to the requirements and mechanisms for the transfer of recording boards, requirements for recording boards, as well as the determination of the definition of Free Float shares through the implementation of Exchange Regulation Number IA concerning Equity Shares and Effects Other than Shares Issued by a Recorded Company (Setting Number IA).

One of the adjustments made in the regulation is the mechanism for transferring record boards for listed Companies from the Main Board or New Economic Board to the Development Board.

IDX Corporate Secretary Kautsar Primadi Nurahmad conveyed that the arrangement of the transfer mechanism for listed Companies from the Main Board or New Economic Board to the Development Board aims to provide more clear classification to investors regarding the condition of listed Companies based on fundamental performance, market capitalization, and fulfillment of the provisions of IDX regulations.

"Regarding these arrangements, the IDX has the authority to conduct an assessment of the Company Recorded for fulfilling the requirements and movement of boards that are carried out every six months, namely in May and November," he explained in his statement, quoted on Friday, May 24.

There are several requirements for listed Companies to be able to remain listed on the Main Board.

First, starting May 2022, listed companies are not allowed to record negative equity in the latest financial reports, do not receive written warning sanctions III from the IDX over the past 1 year, and meet one of the following criteria:

a. The ratio of price to share per share (price to earnings) of the company is no more than 3 times the price to market ratio.

b. The ratio of price to book value (price to book value) of shares is no more than 3 times the price to book value of the market or

c. Stock Capitalization Value of at least IDR 12 trillion.

Second, the number of shareholders must be more than 750 customers who own Single Investor Identification (SID), and Free Float Shares must meet the following conditions:

a. Free Float Shares 10 percent or more, the Stock Capitalization Value of Free Float Shares is more than IDR 200 billion or more than IDR 200 billion

b. Free Float shares are less than 10 percent, so the Stock Capitalization Value of Free Float Shares is more than IDR 1 trillion.

In addition, Kautsar said that the listed company must also obtain opinions without modifications for the last 2 (two) years in a row.

Kautsar conveyed that the fulfillment of the provisions of Free Float shares, the value of Free Float market capitalization, and this opinion had been given a grace period by the IDX for two years from the enactment of Regulation Number IA to December 21, 2023.

"As for, the IDX has carried out socialization and intensively reminded listed Companies to raise awareness of the fulfillment of these provisions," he explained.

Third, to ensure the fulfillment of the fundamental aspects of the Company listed on the Main Board, starting in May 2025, a listed company that wants to remain listed on the Main Board cannot record a net loss for 2 consecutive years, or the Company recorded a compound annual growth rate / CAGR (yearly major growth rate) for operating income of at least 20 percent over the last 3 years.

Therefore, in May 2024, Kautsar said the IDX had assessed the fulfillment of the requirements and movement of boards announced through the announcement of the stock exchange and effective on May 31, 2024.

"The IDX will re-evaluate on this recording board in the next period, namely November 2024," he said.

Kautsar conveyed that with the transfer mechanism for this listing board, it is hoped that the listed company will further spur the company's performance so that it can be an investor's choice in investing.