KONTAN.CO.ID – JAKARTA. The Indonesia Stock Exchange (IDX) launched a list of equity securities traded under special monitoring, Monday (19/7). The implementation is regulated in Rule Number II-S concerning Trading of Equity Securities Under Special Monitoring which has been enforced on Friday 16 July 2021.
IDX Development Director Hasan Fawzi said this step was needed to improve investor protection in the capital market. “We hope to increase transparency, especially regarding information on fundamental conditions and liquidity conditions of listed companies,” he said at a press conference launching the list of equity securities traded under special monitoring, which was held virtual, Monday (19/7).
In addition, this special monitoring is needed so that securities trading can be carried out regularly, fairly and efficiently.
For initial implementation in July 2021, there are seven of the 11 criteria used to select stocks that are included in the Special Monitoring Equity Securities List. The criteria are in accordance with Rule Number II-S.
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First, the financial statements of the last audit obtained an opinion did not express an opinion or opinion disclaimer.
Second, did not record revenue or there was no change in income when compared to the previously submitted financial statements.
Third, for a mineral and coal company or a holding company that has a controlled company engaged in the mineral and coal sector but has not yet reached the sales stage, at the end of the 4th financial year since being listed on the Exchange it has not received income from main business activitiescore business).
Fourth, in the condition that a Suspension of Debt Payment Obligations (PKPU) is requested or bankruptcy is requested.
Fifth, has a subsidiary whose income contribution is material for the listed company and the subsidiary is in a state of being filed for PKPU or filed for bankruptcy.
Sixth, subject to temporary suspension of securities trading for more than one trading day caused by trading activities.
Seventh, other conditions determined by the exchange after obtaining approval or an order from the Financial Services Authority (OJK).
By applying these seven criteria, IDX announced that 17 shares were included in the Special Monitoring list of equity securities.
IDX’s Service and Development Division of Listed Companies, Saptono Adi Junarso, revealed that among the 17 stocks monitored, the bourse did not release the suspension status of 11 shares due to conditions that were considered quite acute.
Saptono himself saw the causes of the suspension were various and this condition had lasted long enough. “Not only in recent times, but for a long time, an average of more than one year. So we maintain the suspension,” said Saptono on the same occasion.
The 11 shares are PT Envy Technologies Indonesia Tbk (ENVY), PT Golden Plantation Tbk (GOLL), PT Kertas Basuki Rachmat Indonesia Tbk (KBRI), PT Marga Abhinaya Abadi Tbk (MABA), PT Mitra Pemuda Tbk (MTRA), PT Garda Tujuh Buana Tbk (GTBO), PT Grand Kartech Tbk (KRAH), PT Leyand International Tbk (LAPD), PT Magna Investama Mandiri Tbk (MGNA), PT Onix Capital Tbk (OCAP), and PT Sri Rejeki Isman Tbk (SRIL) .
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First stage trading mechanism
In this initial implementation, the stock listing board that is included in the securities register under special monitoring follows the company’s last listing board. The trading mechanism is also still using the mechanism continuous auction as
ordinary. The difference is in the limits auto rejection with the upper and lower limits of the price set at 10%. However, during the Covid-19 pandemic, stocks listed on the main board and development board have limitations auto rejection of 10 % for the upper limit and 7 % for the lower limit.
As for the shares listed on the acceleration board, they still follow the trading reference as stated in regulation Number II-V concerning Trading of Equity Securities on the Acceleration Board.
These stocks are also still a constituent in the calculation of the existing index in accordance with the initial or previous constituents. For information to investors and other stakeholders, shares that are included in the list of securities under special monitoring at this time will be assigned a special notation, namely “X”.
For your information, according to Kontan.co.id’s previous notes, for the sake of effective implementation, the exchange will implement this special monitoring in two stages. In addition to the first phase being launched today, the second phase will be implemented next year.
In phase II, the Exchange will develop a securities listing board that is subject to special monitoring. In addition, the exchange will apply trading methods periodic call auction for effects in that particular monitoring. The stock liquidity provider for stocks categorized as illiquid will also be developed in phase II.