REPUBLIKA.CO.ID, JAKARTA - Financial Services Authority (OJK) issued Regulation No.2 of 2013 on buyback their own shares in case of fluctuating market condition. Director of Communications and International Relations of OJK, Gonthor R Azis said this regulation allowed companies to buyback its shares under certain conditions.

"When Composite Stock Price Index (CSPI) fluctuates in three consecutive days, the companies can buyback shares up to 20 percen of the paid up capital," Azis said recently, adding that if the condition also was worsened by stock plummets by 15 percent cumulatively. 

Buyback shares can be conducted without approval from general meeting of shareholders (GMS). The companies can buyback their shares after delivering disclosure to OJK and Indonesia Stock Exchange (IDX) no later than seven days after such stock market condition.

Buyback may only be made three months after submission of such information disclosure. This new regulation also mentioned that buyback shares can be transferred by way of sale among others, both in and outside stock exchange.

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