JAKARTA, Nov 10 (Reuters) - The Indonesia Stock Exchange (IDX) said on Tuesday it had removed the 5 trillion rupiah ($276.93 million) market cap threshold for screening companies that breach high shareholding concentration rules.
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"Stocks with market cap below 5 trillion rupiah are also instruments in which global and domestic investors invest, so they must be given the same level of transparency," IDX CEO Jeffrey Hendrik said
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The move is the latest capital market reform by Indonesia to improve the transparency of listed companies' shareholding structure, following global index provider MSCI's warning that it could downgrade the country's stock market to "standalone" status
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The "price impact ratio" will not be taken into account in the screening, Jeffrey added
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With the changes, there are currently 383 stocks on the high shareholding concentration list, an addition of 300, the CEO said
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The new stocks on the list represent an additional 6.16% of the total market cap of the Jakarta composite index, he said
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IDX has said that stocks on the list will be excluded in the calculation of the Jakarta composite index
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The exclusion has been in effect since November 2
($1 = 18,055 rupiah)
Reporting by Stefanno Sulaiman and Stanley Widianto; Editing by David Stanway
Source: Reuters