Indonesian Financial Services Authority Re-Regulates Rights Issues

In late December 2015, the Indonesian Financial Services Authority ("OJK") issued Regulation No. 32/POJK.04/2015 regarding Rights Issue ("New Rights Issue Rule"). The New Rights Issue Rule came into effect on December 22, 2015. It integrates provisions concerning rights issues and the form and content of the registration statement for a rights issue. These provisions were previously governed under two separate regulations (i.e., Regulation IX.D.1 and Regulation IX.D.2, both of which are replaced by the New Rights Issue Rule).

There are several notable changes under the New Rights Issue Rule, including:

a. Approval of General Meeting of Shareholders ("GMS") is to be secured before the submission of the registration statement to the OJK