MSCI downgrades Indonesia’s transparency-related criterion after identifying concerns about the flow and availability of information needed for market assessment. In its announcement, MSCI links the downgrade to what it describes as opacity in ownership data and market activity. The index provider says this limits its ability to support proper price formation and to ensure investors can evaluate key aspects of listed companies, including the true free float. MSCI’s decision affects the standing of Indonesia’s market classification under its criteria that evaluate transparency and information accessibility. The downgrade signals MSCI’s assessment that current disclosures and data availability are not meeting the required standard for how information flows into and across the market. The change is intended to reflect MSCI’s methodology for index construction and market access considerations, particularly for global investors who rely on accurate and timely data to assess company ownership and trading conditions. The outlets reporting on the decision note that MSCI attributes the move specifically to transparency concerns rather than broader changes in market performance.
MSCI downgrades Indonesia’s transparency criterion over information-flow concerns
MSCI downgrades Indonesia’s transparency-related criterion after identifying concerns about the flow and availability of information needed for market assessment. In its announcement, MSCI links the d...
- MSCI downgrades Indonesia’s transparency or information-flow criterion.
- MSCi cites opacity in ownership data as a key reason for the downgrade.
- MSCI also points to opacity in market activity.
- MSCI says the issues undermine proper price formation.
- MSCI says the downgrade can constrain global investors’ ability to assess the true free float of listed companies.
The index provider said the downgrade reflected opacity in ownership data and market activity, which undermines proper price formation and constrains global investors' ability to assess the true free float of listed companies.
2 months agoThe index provider said the downgrade reflected opacity in ownership data and market activity, which undermines proper price formation.
2 months ago
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