Rabu, November 6, 2024

New Restrictions on Short-Selling Transactions: Total Maximum Accumulated Outstanding Transactions Must Not Exceed 0.04% of Listed Shares

Following the completion of an evaluation of Rule No. III-H (“Rule III-H”) as the Appendix to Decree of the Board of Directors of PT Bursa Efek Indonesia (“BEI”) No. Kep-00157/BEI/10-2024 (“Decree 157/2024”), BEI has decided to introduce a new policy that will restrict short-selling transactions (“Transactions”) through the issuance of Decree of the Board of Directors of BEI No. KEP-00170/BEI/10-2024 (“Decree 170/2024”), which has been in force since 25 November 2024.
In essence, Decree 170/2024 affirms that shares in listed companies, as outlined on the list of short-selling securities, must fulfill the following conditions: 1) Must fulfill various criteria in order to be listed as short-selling securities in accordance with Rule III-H; and 2) Must be listed under the LQ45 index constituents. Moreover, any members of the stock exchange (“Members”) that secure approvals for the financing of Transactions will only be permitted to finance local individual investors.
Decree 170/2024 states that the above-described provisions will apply until 31 December 2025. Meanwhile, any Members that have received approvals for the financing of Transactions in their own self-interest may initiate said transactions from 1 July 2025.
Furthermore, Decree 170/2024 states that the maximum Transaction limits that apply to Members who are permitted to engage in Transactions and/or to finance said Transactions based on the previous month’s daily average Transaction values break down as follows: 1) Daily average Transactions valued over Rp. 750 billion: permitted to carry out Transactions up to a maximum limit of 0.03% of listed shares on the relevant exchange day; 2) Daily average Transactions valued at between Rp. 300 billion and Rp. 750 billion: permitted to carry out Transactions up to a maximum limit of 0.02% of listed shares on the relevant exchange day; and 3) Daily average Transactions valued at less than Rp. 300 billion: permitted to carry out Transactions up to a maximum limit of 0.01% of listed shares on the relevant exchange day.
Ultimately, it is important to note that Decree 170/2024 requires Members to ensure that the total maximum amount of accumulated outstanding Transactions does not exceed 0.04% of listed shares on the relevant exchange day.

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Following the completion of an evaluation of Rule No. III-H (“Rule III-H”) as the Appendix to Decree of the Board of Directors of PT Bursa Efek Indonesia (“BEI”) No. Kep-00157/BEI/10-2024 (“Decree 157/2024”), BEI has decided to introduce a new policy that will restrict short-selling transactions (“Transactions”) through the issuance of Decree of the Board of Directors of BEI No. KEP-00170/BEI/10-2024 (“Decree 170/2024”), which has been in force since 25 November 2024.
In essence, Decree 170/2024 affirms that shares in listed companies, as outlined on the list of short-selling securities, must fulfill the following conditions: 1) Must fulfill various criteria in order to be listed as short-selling securities in accordance with Rule III-H; and 2) Must be listed under the LQ45 index constituents. Moreover, any members of the stock exchange (“Members”) that secure approvals for the financing of Transactions will only be permitted to finance local individual investors.
Decree 170/2024 states that the above-described provisions will apply until 31 December 2025. Meanwhile, any Members that have received approvals for the financing of Transactions in their own self-interest may initiate said transactions from 1 July 2025.
Furthermore, Decree 170/2024 states that the maximum Transaction limits that apply to Members who are permitted to engage in Transactions and/or to finance said Transactions based on the previous month’s daily average Transaction values break down as follows: 1) Daily average Transactions valued over Rp. 750 billion: permitted to carry out Transactions up to a maximum limit of 0.03% of listed shares on the relevant exchange day; 2) Daily average Transactions valued at between Rp. 300 billion and Rp. 750 billion: permitted to carry out Transactions up to a maximum limit of 0.02% of listed shares on the relevant exchange day; and 3) Daily average Transactions valued at less than Rp. 300 billion: permitted to carry out Transactions up to a maximum limit of 0.01% of listed shares on the relevant exchange day.
Ultimately, it is important to note that Decree 170/2024 requires Members to ensure that the total maximum amount of accumulated outstanding Transactions does not exceed 0.04% of listed shares on the relevant exchange day.

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