JAKARTA. Indonesia Stock Exchange (IDX) authority will modify the regulation in the stock market to increase the quality of listed companies, following the controversy of gratification for IPO, leading to contract termination of several employees.

I Gede Nyoman Yetna, Director of Listing of IDX, mentioned that one of the adjustments from the stock exchange authority is a concept of sponsor for candidates of listed companies. The sponsor will then monitor the growth of the new issuer post-IPO.

Prior to this, Yetna said, new issuers were only accompanied by parties such as underwriters and other professional agencies. However, they only followed the companies’ journey until they were publicly listed and entered the board.

“Sponsor is designed to guide the company, especially small-scale ones, through its journey in the stock exchange,” added Yetna.

The sponsor’s role, added Yetna, may ensure companies to maintain good governance. “Small companies often feel “deserted” after entering the stock market, as they do not always have adequate guidelines or support,” said Yetna.

In addition, IDX authority will also revise Regulation I-A and I-B, which contains several requirements, starting from financial requirements, listing fee based on free-float portion, as well as management sustainability, and accountancy competence. (KR/ZH)