Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mahendra Siregar, stated that stock manipulation by irresponsible parties will not affect share prices if the issuer's free float limit and liquidity are high.
Likewise, he explained that the action of "frying" shares will easily affect share prices if the issuer's free float limit and liquidity are small.
"If liquidity and trading are too thin, market price formation factors will be easily influenced. This needs to be strengthened, including by increasing the free float," Mahendra said in an intercepted interview at the Indonesia Stock Exchange (IDX) building .
According to him, with a large free float and wider trading activity, it is no longer easy to influence prices.
