Business · Markets · 1 hr ago
Indonesia Exchange to Randomly Check Companies’ Public Shareholding Reports
The Indonesia Stock Exchange will randomly check companies’ public shareholding reports after first explaining reporting rules to listed firms.
The checks will test whether shares reported as available to the public are actually held by people or parties linked to company controllers.
The exchange says directors responsible for false reports could face firm action.
The move is part of wider efforts to improve market transparency and follows concerns raised by index provider MSCI about enforcement in Indonesia’s capital market.
The exchange is also updating its trading surveillance, and it plans to publicly identify shares under investigation for suspected manipulation, along with relevant trading periods and parties.
During an investigation, it may also restrict activity in securities accounts or suspend them.
The Indonesia Stock Exchange plans random checks of listed companies’ reports on public shareholdings, known as free float.
The checks will test whether reported public shareholdings reflect actual ownership and exclude parties affiliated with company controllers.
The exchange says directors responsible for inaccurate reports may face firm action.
The move is part of wider market oversight reforms following scrutiny by MSCI, which has highlighted enforcement.
The exchange is also updating its trading surveillance so it can make information about investigations public.
- Who
- The Indonesia Stock Exchange (BEI) will check listed companies’ reports. Directors responsible for inaccurate reports may face action.
- What
- The exchange will conduct random checks of reported public shareholdings and affiliated parties.
- When
- After the exchange has briefed listed companies on their reporting obligations. A specific start date is not stated.
- Where
- Indonesia.
- Why
- To verify the accuracy of reported free float and improve transparency and market oversight, amid MSCI scrutiny of enforcement.
This story does not have two clearly opposing sides.
Financial Services Authority chair Friderica Widyasari Dewi said enforcement remained below MSCI’s expectations.
The exchange says it will begin random checks of free-float and affiliated-party reports.
CNBC Indonesia reported the exchange’s plans to tighten checks and update its market surveillance.
- Exchange
- Indonesia Stock Exchange (BEI)
- Reports to be checked
- Listed companies’ free-float and affiliated-party reports
- Check method
- Random checks
- Potential action
- Firm action against directors responsible for inaccurate reports
- Market scrutiny
- MSCI highlighted enforcement as an area needing improvement
2 sources
What people are saying
If we find a listed company has incorrectly reported its free float or affiliated parties, we will take firm action against the directors responsible.
All the requirements they asked of our market have been met regarding disclosure, transparency, liquidity and other matters. Only one still does not meet expectations: enforcement.