Framework for Price Stabilizations Undertaken During Public Offerings Updated

With the ultimate goal of improving clarity and certainty as regards price stabilizations so that public offerings become easier to implement, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) has issued Regulation No. 6/POJK.04/2019 on Price Stabilizations Undertaken during Public Offerings (“ Regulation 6/2019 ”). [1] Previously, matters pertaining to price stabilizations which were undertaken during public offerings were regulated under Decree of the Head of Capital Market Supervisory Agency (Badan Pengawas Pasar Modal– “ BAPEPAM ”) No. KEP-88/PM/1996 on Price Stabilizations Undertaken during Public Offerings (“ Rule XI.B.1 ”). Rule XI.B.1 has now been repealed and replaced by Regulation 6/2019. [2] In essence, and for the various reasons outlined above, Regulation 6/2019 addresses the following matters: