New Regulatory Framework on Share Split and Reverse Share Split by Public Companies by OJK

On 22 August 2022, the Financial Services Authority (“OJK”) enacted Regulation No. 15/POJK.04/2022 on Share Split and Reverse Share Split by Public Companies (“OJK Regulation 15/2022”) which will take effect on 22 February 2023, six months after its enactment.

OJK Regulation 15/2022 is expected to provide specific regulatory framework regarding share split and reverse share split by public companies which was briefly regulated under the Decision of the Board of Directors of PT Bursa Efek Indonesia No. Kep-00101/ BEI/12-2021 on Listing of Shares and Equity Securities Other Than Shares Issued by Public Companies covering among others shares listing provisions in general, including the listing of shares resulting from stock split and reverse stock, and the relevant timeframe in which a public company is restricted from conducting a share split or reverse share split.

This publication sets out the key regulatory provisions of OJK Regulation 15/2022 and the impact on public companies.

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Key Contacts

Adrian Pranata

Partner, Jakarta

Dhanu Dhiraja

Associate, Jakarta

Putri Meisita Kusuma

Associate, Jakarta