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30 November 2010
After allowing issuers and public companies to issue shares with nominal value during the last financial crisis in the late 1990s, Bapepam – the Capital Market and Financial Institutions Supervisory Agency – finally issued Regulation IX.D.6 on the issuance of shares with different nominal value, which provides formal regulatory framework for this type of share issuance.
As Bapepam regulates issuers and public companies only, it is only these entities which are subject to the regulation, albeit with certain restrictions and requirements. Among the restrictions is a condition that the current market price of the shares to be issued (with different nominal value) be below the nominal value. Once issued, the shares issued with different nominal value will bear the same rights as those borne by those previously issued of the same class. The nominal value of previously issued shares of the same class will not be changed or adjusted to make it the same as the nominal value of the more recently issued shares.
The regulation was issued and became effective on October 1 2010.
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