KONTAN.CO.ID - JAKARTA. The Indonesia Stock Exchange on Tuesday cut the lower auto-rejection limit to 1 rupiah from 7% for stocks in the 11 rupiah-to-14 rupiah price range, aiming to tame a selloff after MSCI threatened to remove Indonesia from its global indexes.

The adjustment is to help ensure trading is orderly, fair and efficient and supports better price discovery, the exchange said.

The new policy is effective Tuesday until December 31 this year.

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For stocks at 15 rupiah and above, the down limit remains at 7%.

A down limit of 1 rupiah for stocks priced below 10 rupiah apiece still applies.

Sell orders below limit-down prices are automatically rejected by the bourse's trading system.

The move is the latest aimed at easing a stock market rout due to index provider MSCI's proposal to downgrade Indonesia to "standalone" status, which would exclude it from MSCI's global emerging and frontier market indexes.