To follow-up two regulations issued by the Financial Services Authority (OJK) and the Indonesia Stock Exchange ("IDX") on multiple voting rights shares, IDX issued a decree to complement the implementation of multiple voting rights shares.
Before the new decree was issued, lock-up shares, which are common shares or non-multiple voting rights shares that are subject to the eight-month lock-up period, in scrip form cannot be categorised as free float shares. Through the new decree, IDX allows scrip shares to be counted as part of the free float shares if the escrow account to deposit the scripless shares is not yet available and the scrip shares fulfil the criteria stated in the decree.
However, once the eight-month lock-up period expires, the free float shares must fulfil the criteria under IDX's new listing regulation, including the condition for the shares to be kept in scripless form.
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