JAKARTA, Feb 27 (Reuters) – The Indonesia Stock Exchange will implement in stages an upcoming requirement for companies to double their minimum free float, or freely tradable stocks, to 15%, its interim chief executive told Reuters on Friday.
The bourse may divide companies into batches according to their readiness to offer more stocks, giving each batch a year to comply with the minimum free float level, Jeffrey Hendrik said in an interview, adding the details were still subject to approval by the Financial Services Authority.
The comments are the clearest details authorities have given about the plan to increase the mandatory free float, among a raft of capital‑market reforms pledged since MSCI in late January warned Indonesia risked being downgraded to frontier market status as early as May over limited transparency that may have enabled price manipulation.
(Reporting by Stefanno Sulaiman; Writing by Gayatri Suroyo; Editing by Martin Petty)
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