Indonesia rushes to ease buyback rules as market turmoil triggers urgent action
The move, aimed at restoring investor confidence, comes on the heels of a sharp decline in the local stock market on Mar 18
[JAKARTA] In a bid to support the market and prevent another potential rout, Indonesia’s securities regulator took sweeping action on Wednesday (Mar 19) by fast-tracking a buyback policy that was previously in the works.
The Financial Services Authority (FSA) on Tuesday reinstated a rule to allow publicly listed companies to conduct share buybacks without shareholder approval. It was previously implemented during the 2020 pandemic crisis to help restore investor confidence.
This policy will be in effect for six months, allowing companies to buy back up to 20 per cent of their paid-up capital.
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